Prescribed Lease Clauses
Leases written after 19th June 2006 for a term of over 7 years contain what are called prescribed lease clauses which not only summarise the details of the lease but contain all the information that the Land Registry needs to allow it to faster and more efficiently complete registration. They were introduced under the Land Registration (Amendment) (No 2) Rules 2005.
They must be supplied correctly, in the format set out by the Land Registry and attached to the front of the lease where they can easily be found.
They can either contain the necessary information or a cross-reference to the relevant parts of the lease:
LR1: Date of lease. This will show the amount of unexpired years the lease has remaining.
LR2: Title number(s)
LR2.2 Other title numbers: Existing title number(s) against which entries of matters referred to in LR9, LR10, LR11 and LR13 are to be made
LR3: Parties to the lease: Full names, addresses of landlord, tenant and any other parties
LR4: Property: A full description of the land being leased or reference to the clause, schedule or paragraph of a schedule in the lease in which the land being leased is more fully described. Where there is a letting of part of a registered title, a plan must be attached to the lease and any floor levels must be specified. In the case of a conflict between this clause and the remainder of the lease then, for the purposes of registration then this clause will prevail.
LR5: Prescribed statements etc. If the lease includes a statement falling within LR5.1 insert under that sub-clause the relevant statement or refer to the clause, schedule or paragraph in the lease which contains the statement.
LR5.1: Statements prescribed under the following: rules 179 (dispositions in favour of a charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing & Urban Development Act 1993) of the Land Registration Rules 2003.
LR6: Term for which property is leased
LR7: Premium: Amount of money to be paid
LR8: Prohibitions or restrictions on disposing of the lease
LR9: Rights of acquisition etc.
LR10: Restrictive covenants: Given in the lease by the Landlord in respect of land other than the Property
LR11: Easements: This is a right to cross or otherwise use someone else’s land for a specified purpose.
LR12: Estate rent burdening the Property
LR13: Application for standard form of restriction
LR14: Declaration of trust (where there is more than one tenant).
Note: Even though these prescribed clauses were introduced in an attempt to make leases more uniform, they do not make newer leases immune from being defective as they can still become so as requirements of lenders and other parties change.
WHEN PRESCRIBED LEASE CLAUSES ARE NOT REQUIRED
If the lease term is below 7 years then it is not usually required to be registered and prescribed clauses are not required. Nor do leases qualify for prescribed clauses if they are created or arise from the following:
- An order of the court;
- An enactment;
- A necessary consent or licence for the grant of a lease given before 19 June 2006;
- A deed of variation that takes effect as surrender and re-grant, whether or not the original lease was a prescribed clause lease;
- Leases of franchises, manors or profits;
- Leases incapable of registration.