"Overriding" interests: short-term leases- FS Flashcards
(8 cards)
Definition: Short-Term Lease (for SQE purposes)
A lease granted for 7 years or less, which is not registrable at the Land Registry but can operate as an overriding interest under Schedule 3 of the Land Registration Act 2002.
Under what conditions does a short-term lease override registered dispositions?
When the lease is:
- Legal (granted by deed),
- For not more than 7 years from the date of grant,
- Not required to be registered under Section 27 of the Land Registration Act 2002.
Why are short-term legal leases not registered at the Land Registry?
Because only leases over 7 years are considered registrable dispositions under Section 27 of the Land Registration Act 2002. Leases of 7 years or less do not require registration.
What statutory provision governs informal or parole leases?
Section 54 of the Law of Property Act 1925, which allows leases of 3 years or less to be created orally, provided they meet specific statutory criteria.
Can an informal (parole) lease qualify as an overriding interest under the Land Registration Act 2002?
No. Only legal leases created by deed are capable of being overriding interests under Schedule 3. Informal leases are not protected.
What does the word “granted” imply when assessing overriding leases under the 2002 Act?
It signifies that the lease must be legally created, typically by deed, distinguishing it from informal or oral arrangements.
What is the practical implication for a buyer when a short-term lease is not registered or noted on the register?
The lease may still bind the buyer as an overriding interest, even though it is not visible on the register, provided it is a legal lease for ≤7 years.
How should a purchaser’s solicitor identify potential overriding short-term leases?
By conducting pre-contract inquiries and inspecting the property, since such leases do not appear on the register.
