From 20 October 2014, Land Registry will be implementing practice changes to help prevent restrictions on leasehold registered titles creating problems, where the restriction calls for the consent of a particular named lessor or managing agent, and that lessor or managing agent has changed or been dissolved.
New Land Registry guidance will encourage lessors to consider relevant matters in deciding on the form of restriction to apply for. This should help lessors apply for a form of restriction that won’t create difficulties if the lessor changes.
The process for applying for cancellation of a restriction will also be clarified:
If a named lessor or management company has changed
Land Registry will now permit application in form RX3 to cancel a restriction relating to the covenants in a lease if either the lessor or the management company has changed.
The application may be made either by the new lessor to whom the reversionary interest has been transferred, or by the proprietor of the leasehold title.
The new lessor and the proprietor of the leasehold title can agree a new form of restriction and apply for the registration of the same in form RX1.
If a named lessor or management company has been dissolved
The proper course will generally be to apply either for the restoration of the company or for the restriction to be dis-applied in relation to a specified disposition.
However, Land Registry will consider applications to cancel restrictions on leasehold titles that relate to the covenants in the lease where the lessor or management company named in the restriction has been dissolved.
If the lessor or management company is restored to the register after the restriction in their favour has been cancelled on the basis of the company’s dissolution, then application may be made at that point in time by the restored company for the restriction to be entered.
The above practice will apply only to restrictions on registered leasehold titles that relate to the covenants in the lease.