Remortgage Unregistered Land

What Is Unregistered Land?

In England and Wales, land ownership can be either registered or unregistered. Registered land has its ownership details recorded at HM Land Registry, with a unique title number and an official title plan. Unregistered land, by contrast, relies on a chain of historical title deeds to prove ownership.

Compulsory registration was introduced at different times in different areas, starting in London in 1899 and gradually extending across the country. Since 1990, all areas in England and Wales have been subject to compulsory registration. This means that any property that has been sold, gifted, or mortgaged since that date should have been registered.

However, if a property has remained in the same ownership without a triggering event since before compulsory registration applied in that area, it may still be unregistered. Common situations where land remains unregistered include:

• Properties held in the same family for generations — If a property has been passed down through a family without a formal sale or new mortgage, it may never have been registered.
• Rural and agricultural land — Farmland and rural estates that have been in long-term ownership are more likely to remain unregistered.
• Properties with existing mortgages from before compulsory registration — If a mortgage was taken out before registration became compulsory in that area and has not been remortgaged since, the land may still be unregistered.
• Properties acquired by inheritance — Inheriting a property does not always trigger compulsory registration, depending on the circumstances and timing.

HM Land Registry estimates that around 15% of land in England and Wales remains unregistered, though this figure is steadily decreasing as more transactions trigger the registration requirement.

Can You Remortgage Unregistered Land?

Yes, you can remortgage unregistered land, but the process is more involved than remortgaging a registered property. The key difference lies in how ownership is verified and how the lender secures its charge against the property.

With registered land, the lender can quickly verify ownership through HM Land Registry and register its mortgage charge against the title. With unregistered land, the lender and its solicitors must examine the original title deeds to verify ownership, which takes more time and can be more expensive.

In practice, most lenders will require the land to be registered at HM Land Registry as part of the remortgage process. This is known as first registration and is a standard legal requirement when a new mortgage is created over previously unregistered land. The process typically involves the following steps:

• Title deeds examination — Your solicitor will need to review the full chain of title deeds going back at least 15 years (the statutory minimum under the Law of Property Act 1969) to establish a good root of title.
• First registration application — Your solicitor will submit an application to HM Land Registry for first registration of the title. This includes providing all relevant deeds, plans, and supporting evidence.
• Land Registry processing — HM Land Registry will examine the application, which can take several weeks or even months. They may raise requisitions (queries) that need to be addressed before registration is completed.
• Title registration — Once satisfied, HM Land Registry will create a new registered title with a title number, title plan, and register of title, recording the ownership and any charges.

Some lenders are willing to proceed with the remortgage on the basis that first registration has been applied for, while others may want to wait until registration is fully completed. Your mortgage broker can advise on which lenders take a more flexible approach.

Challenges and Common Issues With Unregistered Land Remortgages

Remortgaging unregistered land can present several challenges that you should be prepared for. Being aware of these potential issues in advance can help you plan accordingly and avoid unnecessary delays.

Missing or damaged title deeds

One of the most common problems is that the original title deeds may have been lost, damaged, or are incomplete. Unlike registered land where ownership records are held centrally by HM Land Registry, the proof of ownership for unregistered land rests entirely on the physical deeds. If deeds are missing, your solicitor will need to reconstruct the chain of ownership using alternative evidence, which can be a lengthy process.

Boundary disputes

Unregistered land often has less precise boundary definitions than registered land. The title deeds may contain only a basic description of the property boundaries, which can lead to uncertainty or disputes with neighbouring landowners. Any boundary issues will need to be resolved or addressed before registration can proceed.

Third-party rights and easements

With unregistered land, rights such as rights of way, access rights, and other easements may exist but may not be formally documented. Your solicitor will need to investigate whether any such rights exist and ensure they are properly recorded during the registration process.

Higher legal costs

The conveyancing work involved in remortgaging unregistered land is significantly more complex than for registered land. Your solicitor needs to examine historical deeds, prepare the first registration application, and deal with any issues that arise. This means legal fees are typically higher than for a standard remortgage.

Longer timescales

The entire process can take considerably longer than a standard remortgage. First registration alone can take several months, depending on the complexity of the application and HM Land Registry's current processing times. You should factor this into your planning, particularly if your current mortgage deal is ending soon.

Possessory title

If there are gaps in the chain of ownership or deeds are missing, HM Land Registry may grant a possessory title rather than an absolute title. A possessory title provides less certainty of ownership, which can make some lenders more cautious. After 12 years without any adverse claim, a possessory title can be upgraded to an absolute title.

How First Registration Works

First registration is the process of recording previously unregistered land at HM Land Registry for the first time. It is triggered by certain events, including the creation of a new mortgage, the sale of the property, or a voluntary application by the landowner.

When you remortgage unregistered land, the creation of the new mortgage is a triggering event that makes first registration compulsory. Your solicitor will handle the application on your behalf, but it helps to understand what is involved.

Documents required for first registration:

• The original title deeds, including all conveyances, transfers, and assents going back to a good root of title (at least 15 years).
• An accurate plan of the property, usually based on Ordnance Survey mapping, showing the boundaries clearly.
• A statutory declaration or statement of truth confirming the applicant's ownership and occupation of the property.
• Evidence of any rights benefiting or affecting the land, such as easements, covenants, or rights of way.
• Details of any existing charges or encumbrances on the land.

The registration process:

Once the application is submitted, HM Land Registry will examine it thoroughly. They may raise requisitions, which are queries about the application that need to be answered before registration can proceed. Common requisitions relate to boundary discrepancies, gaps in the chain of ownership, or the need for additional evidence.

HM Land Registry may also serve notice on neighbouring landowners or other interested parties, giving them an opportunity to object to the registration if they believe they have a competing claim to the land.

Once all requisitions have been dealt with and any objection period has passed, HM Land Registry will complete the registration and issue a title number. From that point, the property is treated as registered land and all future transactions are recorded against the title number.

Registration fees:

There is a fee payable to HM Land Registry for first registration, which varies depending on the value of the property. However, there is an incentive for voluntary first registration. If you apply voluntarily (before a triggering event forces you to), the fee is reduced by 25%. This can be worth considering if you are planning to remortgage in the near future.

Finding a Lender for Unregistered Land

Not all lenders are willing to mortgage unregistered land, but there are options available if you know where to look. The key is working with a mortgage broker who understands the complexities involved and can match you with suitable lenders.

Mainstream lenders:

Some high street lenders will consider applications on unregistered land, provided that first registration is being applied for as part of the remortgage process. They will typically require their solicitor to confirm that the title deeds are in order and that a valid first registration application has been or will be submitted.

Specialist lenders:

If mainstream lenders are not an option, there are specialist lenders who have more experience with unusual property situations, including unregistered land. These lenders may be more flexible in their approach but could charge slightly higher interest rates to reflect the additional complexity and perceived risk.

Building societies:

Some building societies, particularly smaller regional ones, may have more flexibility in their lending criteria and could be willing to consider unregistered land on a case-by-case basis. Their manual underwriting approach can be an advantage in non-standard situations.

What lenders will look for:

• A clear chain of ownership demonstrated through the title deeds.
• Confirmation that first registration has been applied for or will be applied for as part of the transaction.
• A satisfactory valuation of the property.
• Standard affordability and credit checks.
• A solicitor's report confirming that the title is sound and free from significant defects.

Using a whole-of-market mortgage broker is highly recommended in this situation. They will have knowledge of which lenders are most receptive to unregistered land applications and can present your case in the most effective way, potentially saving you time and money in the process.

Practical Steps to Prepare for Your Remortgage

If you are planning to remortgage a property on unregistered land, taking the following practical steps can help the process go more smoothly and reduce the risk of delays or complications.

Locate your title deeds

The first and most important step is to locate all your original title deeds. These may be held by your current mortgage lender, your solicitor, or in your own possession. If you cannot find them, contact your existing lender and any solicitors who have previously acted for you. If the deeds have been lost, your solicitor will need to take additional steps to reconstruct the chain of ownership.

Instruct an experienced solicitor

First registration is a specialist area of property law, and not all conveyancing solicitors have extensive experience with it. Choose a solicitor who has handled first registration applications before and who understands the potential issues that can arise. Ask them about their experience and typical timescales.

Consider voluntary first registration

If you are not planning to remortgage immediately, you might want to consider applying for voluntary first registration in advance. This gives you time to resolve any issues without the pressure of a mortgage application deadline, and you benefit from the reduced registration fee. Once the land is registered, the remortgage process will be much more straightforward.

Check for boundary issues

Review the property boundaries described in your deeds and compare them with the physical boundaries on the ground. If there are any discrepancies, it is better to identify and address them early rather than having them raised as an issue during the registration process.

Allow plenty of time

A remortgage involving first registration will take longer than a standard remortgage. Start the process well in advance, ideally at least six to nine months before your current mortgage deal expires. This gives your solicitor adequate time to prepare the first registration application and deal with any issues that arise.

Get a specialist valuation

Properties on unregistered land can sometimes be more difficult to value accurately, particularly if they are in rural areas or have unusual boundaries. A valuation from a surveyor with local knowledge can help ensure the lender receives an accurate picture of the property's worth.

By preparing thoroughly and working with experienced professionals, you can navigate the remortgage process for unregistered land successfully and access competitive mortgage rates.