Most individuals or companies who decide to enter into a commercial lease often ask if they should register it on the property title. This article will help you understand the importance of lease registration as well as the need to compare conveyancing in the UK.
Protects tenants interests
The primary advantage of registering a lease is that it offers the tenant security regarding their property possession based on the leases terms and according to law. This protects the interest of the tenant from circumstances that may have an impact on the property title. Such situations include an entity stating interest in the land, a mortgagee seeking to acquire and sell the property, and a landlord selling it to another party.
Therefore, registration is essential for tenants where the property is leased for their strategic location, size or other reason. Tenants would want to defend their ownership of the property from any future occasions that will affect the interests of the landlord where they have little control.
Probably the only drawback in registering the lease is the upfront fees that the tenant generally has to cover, which include the following:
- Mortgage consent charges, if necessary to the specific property;
- Titles Office registration fee for the Lease; and
- Registered surveyor fee, if the leased property is only a portion of the land.
The fees listed above can vary, but the difference is mainly if they need to prepare a plan for the mortgagee before registering the lease.
Even though such upfront charges can seem quite weighty to an individual or a small company that is just starting, the advantages still outweigh the costs. This is particularly important if they have to extend the lease for some time, such as more than three years.