Agreed Notice Land Registry
Under the Land Registration Act 2002, a system has been introduced in order to keep a record of all property titles. Its aim is to create an accurate reflection of the title's state at any given moment in time. This includes ownership of the property, its description and any restrictions or charges that are placed on the property.
A legal charge is registered at the Land Registry when you take out a loan and secure it against your property. It protects the lender's investment, offering them the possibility of repossessing your home if you fail to repay the debt.
If you sell your home before paying this debt, the lender also has the right to request a part of your proceedings, in order to cover it.
When a property has multiple charges against it, those charges are ranked according to the order that they were registered in the first place. There are ways you can prioritise yours.
By registering a notice, a third party's interest will be prioritised against any subsequently registered ones. Restrictions, on the other hand, will protect the third party by blocking dispositions from being made.
What is a notice on a property?
A notice is an entry which is registered with the Land Registry in order for a third party's interest to be secured against your property. A notice has to be submitted by the person who will benefit from that interest (i.e., the third party).
Notices do not attest the validity of an interest, but they do, however, prioritise it should it be found valid.
In order to protect proprietors from suffering any unnecessary losses as a result, section 77 of the Land Registration Act 2002 states that the applicant must have a reasonable cause when submitting an entry.
When applying to register a notice, you can use the two types:
- an agreed notice
- a unilateral notice
Notices only serve as protection for your interest as a third party. They do not offer you a lot of power, but simply assure you that should another charge be registered against the property, your interest will not be postponed.
For instances where you want to postpone a charge, there is the option of drafting a deed of postponement. Our solicitors can help you start the process.
What is an agreed notice Land Registry?
An agreed notice in the Land Registry is an entry which can only be registered by:
- the proprietor themself (or someone who is entitled to act as one) or with their consent
- the registrar (i.e., the Land Registry), without the cooperation of the proprietor, in situations where the third party applicant can prove that their interest is valid (supporting evidence must be presented, such as a charging order)
If the proprietors do not wish to cooperate, the Land Registry is not liable to notify them when an entry is submitted. This is applicable as long as the supporting evidence is strong enough to prove the third party's interest. Only after the claim is investigated and approved, will the proprietor be notified of this fact.
There is no difference in the purpose of the notices. They both prioritise a third party interest, and while the unilateral notice has the flexibility of not requiring proprietor consent, there are certain interests which can only be protected by an agreed notice. These are:
- Home rights
- HMRC charges regarding inheritance tax
- An interest resulted from an order made under Access to Neighbouring Land Act 1992
- A variation of a lease in regards to the Landlord and Tenant Act 1987
- Public rights
- Customary right
You can apply for an agreed notice by filling in a Form AN1.
If you're not sure if you have enough evidence, or if it is strong enough to support your claim, you can get in touch with one of our solicitors. They can offer advice and help you start protecting your interest.
Frequently Asked Questions
ChargeRemoval
UnilateralNotice
Are you a third party trying to protect their interest in a property?
Do you have solid evidence to support your case? You might not even need proprietor's consent.
We can help you apply for an agreed notice at the Land Registry.
