Timing: 00:00:00
Tom is the freehold owner of Rosewood Manor, a former stately home which is not registered at HM Land Registry. Tom is in the process of converting Rosewood Manor into flats and enters into a contract agreeing with Lucy that he will grant her a 999-year lease of one of the flats in three months when the works are completed. Prior to entering into the contract, Tom deduces his freehold title to Lucy but does not register the freehold. Assuming that no defects exist in the title that Lucy is granted by Tom, what grade of title could she expect to achieve should she apply to register her flat at HM Land Registry?
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Lucy could expect to be registered with absolute leasehold title. Her title would be based upon the grant of a lease rather than possession, meaning that she would not have possessory title. Note that leases can be registered at the Land Registry with absolute leasehold title even if the landlord's title is unregistered. Where it can be proved that the landlord's title would be registered if an application were to be made, the tenant would still get absolute leasehold title. Qualified title is only granted where the title being presented for registration is defective. Good leasehold title is granted where the landlord's title is not registered and evidence of that title is not presented to the Land Registry when the lease is registered.
Key Point: Absolute leasehold title can be obtained even if the landlord’s title is unregistered, provided there is sufficient evidence to show the landlord’s title would be registrable. This ensures the tenant’s title is robust and not dependent solely on the possession.
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