Storm clouds gather over the new right of inspection
Under the current (unreformed) land registration system, the public right to inspect registry entries does not extend to mortgages and leases. These exemptions will no longer apply once section 66 of the Land Registration Act 2002 comes into force (proposed for October 2003), subject only to exceptions that the Lord Chancellor may make by way of rules.
As explained by Jonathan Kelly, of Lovells, in
The anxiety that may be felt by security conscious commercial lessees can only be heightened by the fact that: (a) a vast number of relatively short leases will be drawn into the new registration scheme (see
As pointed out both in Jonathan’s article and Peter Bill’s
Imagine that the terms of a business lease are somewhat relaxed about alterations and permitted use –is this a pointer to possible plans for expansion or diversification. The lessee makes a song and dance about disclosure – could this be his worst mistake?
Related item:
Storm clouds gather over the new right of inspection
Under the current (unreformed) land registration system, the public right to inspect registry entries does not extend to mortgages and leases. These exemptions will no longer apply once section 66 of the Land Registration Act 2002 comes into force (proposed for October 2003), subject only to exceptions that the Lord Chancellor may make by way of rules.
As explained by Jonathan Kelly, of Lovells, in Be that as it may… Estates Gazette 12 October 2002, p172, a Land Registry consultation paper published on 27 August 2002 suggests criteria for exempting a so-called “exempt commercial information document” that require a balance to be struck between public interest in disclosure and the commercial sensitivity of the information in question.
The anxiety that may be felt by security conscious commercial lessees can only be heightened by the fact that: (a) a vast number of relatively short leases will be drawn into the new registration scheme (see PP 2002/201); and (b) leases in force on the appointed day will, unless excepted, also be open to inspection.
As pointed out both in Jonathan’s article and Peter Bill’s editorial in the same issue, commercial sensitivity is bound to be a slippery concept. Who knows what use an astute investigator may make of seemingly routine information? See also the warnings uttered by by Geoffrey Silman, of Finers Stephens Innocent, in his letter appearing in Estates Gazette 22 March 2003, p58.
Imagine that the terms of a business lease are somewhat relaxed about alterations and permitted use –is this a pointer to possible plans for expansion or diversification. The lessee makes a song and dance about disclosure – could this be his worst mistake?
Related item:
PP 2002/199
