Guidance

Practice guide 28, supplement 1: extension of leases: checklist for submitting an application to register the surrender and regrant of a leasehold estate

Updated 31 October 2022

Applies to England and Wales

1. Overview

This supplement describes the considerations that should be made when making an application to register the surrender and regrant of a leasehold estate. It includes surrenders (by operation of law) and regrants arising:

• when a new lease is granted to the same tenant, to take effect immediately

• when a new lease is granted to an existing tenant exercising their rights under the Leasehold Reform, Housing and Urban Development Act 1993

• when a deed of variation changes the length of a registered lease by increasing the term or adds new land to the extent demised by a registered lease

The following sections contain guidance on completing application form AP1, the prescribed clauses in a prescribed clauses lease and checklists for the three types of surrender and regrant applications described above to assist you when preparing these applications and avoid requisitions. They assume that the landlord’s title is registered and that the lease being surrendered is registered with its own title number. If the landlord’s title is not registered, see practice guide 1: first registrations. If the lease being surrendered is not registered with its own title number but is noted (or contains easements that are noted) on the landlord’s title, see section 2.4 of practice guide 28: extension of leases (or, for a unilateral notice, lodge form UN2 for removal or form UN4 for cancellation).

General guidance can also be found in:

• practice guide 26: leases: determination

• practice guide 27: the leasehold reform legislation

• practice guide 28: extension of leases

• practice guide 64: prescribed clauses leases

1.1 Application form AP1

General guidance is available in Guidance: completing form AP1 but specific guidance for surrender and regrant applications is provided below. A requisition will normally be raised when required information is missing.

1.1.1 Panel 2: title number(s)

This must include the title numbers in prescribed clauses LR2.1 and LR2.2 in the lease, the title number of the surrendered lease and when the new lease is made under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993, any intermediate leasehold titles.

1.1.2 Panel 4: application, priority and fees

This must list all the applications you are making (for example, surrender of lease, new lease). Under the value column you will need to enter the premium (if anything) and then the fees payable under the current Land Registration Fee Order.

1.1.3 Panel 9: address for service

This must include the address for service of the tenant.

1.1.4 Panel 10: new charges

This must be completed with the address for service of any lender of an unapproved form of charge.

1.1.5 Panel 13: evidence of identity

1.1.5.1 Panel 13(1)

Enter the full names of all persons for whom confirmation of identity is required in the first column. Enter each party in a separate box (for example landlord, tenant, lender).

Place a cross in the second column against the name of any of these persons you represent. In the third column, either enter details of the conveyancer(s), including their reference, who act for any of the other persons or if any are unrepresented insert ‘none’. Where an attorney is acting, for the sake of clarity the attorney and donor must be listed in separate boxes (see example 2 in section 13.6 of practice guide 67: evidence of identity).

1.1.5.2 Panel 13(2)

You will need to complete this panel if you wrote ‘none’ to confirm that a person is not represented, unless one of the exceptions set out in practice guide 67: evidence of identity applies, in which case you should refer to the exception and provide the relevant evidence. For example, if exception C (not practicable to provide identity evidence) applies you should refer to it and provide the necessary covering letter.

Where an exception does not apply, then for each unrepresented person you must either:

• confirm that you are satisfied that sufficient steps have been taken to verify their identity, or

• enclose evidence of their identity in form ID1 or form ID2 (as to which see section 8 of practice guide 67: evidence of identity)

1.2 The prescribed clauses lease

1.2.1 LR1: date of lease

This clause must contain the date of the lease.

1.2.2 LR2.1: landlord’s title number(s)

This clause must contain the title number(s) of the property of the landlord out of which the lease is granted.

1.2.3 LR2.2: other title numbers

Complete clause LR2.2 with any title numbers (other than the landlord’s title(s) already given in LR2.1) against which you are applying to make entries of matters referred to in clauses LR9, LR10, LR11 and LR13.

The existing leasehold title is not required in clause LR2.2.

1.2.4 LR3: parties to the lease

This clause must include the full names and addresses of both the landlord and tenant. If any of the parties is a company or limited liability partnership, quote the registration number and/or the territory of incorporation as instructed in the text.

When required, your application must include evidence of devolution of title to the landlord.

1.2.5 LR4: property

The clause must include a full description of the property leased or reference to the clause, schedule or paragraph of a schedule in the body of the lease that describes the land demised. Where the lease is of part only of the landlord’s registered title, the property leased must be identified by reference to a plan, as instructed in the text. If there is any conflict between the details given in this clause and those referred to elsewhere in the lease, we will complete registration of the lease based solely on the information provided in clause LR4.

1.2.6 LR5.1: statements prescribed under rules 179 (dispositions in favour of a charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing and Urban Development Act 1993) of the Land Registration Rules 2003

When the lease is in favour of or by a charity the relevant statement(s) described in section 5.5.1 of practice guide 64: prescribed clauses leases must be included.

Additionally, when the lease is made under the Leasehold Reform, Housing and Urban Development Act 1993 it must contain the statement described in section 5.3.3 of practice guide 27: the leasehold reform legislation or refer to the clause, schedule or paragraph of a schedule in the lease containing it.

1.2.7 LR6: term for which the property is leased

This clause must include the term of the lease or the clause, schedule or paragraph of a schedule in the lease containing details of the term. Please set out the term in full here if possible.

1.2.8 LR7: premium

This clause must include the premium paid. Leases granted under the Leasehold Reform, Housing and Urban Development Act 1993 must always contain a premium.

1.2.9 LR8: prohibitions or restrictions on disposing of this lease

This clause should include one of the two options.

If you do not complete this clause, or complete it incorrectly, no entry will be made.

1.2.10 LR10: restrictive covenants given in this lease by the landlord in respect of land other than the property

This clause should refer to the clause, schedule or paragraph of a schedule in the body of the lease that contains details of any restrictive covenants in the lease that bind land owned by the landlord, other than the reversionary interest in the property described in clause LR4.

Ensure the new lease includes a definition of the existing lease if restrictive covenants are imported from it.

If you do not complete this clause, or complete it incorrectly, no entry will be made.

Note: you should not refer in clause LR10 to:

• personal covenants

• restrictive covenants entered into by the tenant

• restrictive covenants entered into by the landlord so far as relating only to the reversionary interest in the property described in clause LR4

1.2.11 LR11: easements

You should complete these clauses by referring to the clause, schedule or paragraph of a schedule in the new and/or existing lease (as applicable) that contains the easements. If you do not complete them, or complete them incorrectly, any easements in the lease will not be completed by registration.

Ensure the new lease includes a definition of the existing lease if easements are imported from it.

See section 5.11 of practice guide 64: prescribed clauses leases.

1.2.12 LR12: estate rentcharge burdening the property

You should complete this clause by referring to the clause, schedule or paragraph of a schedule in the lease when it contains an estate rentcharge. If you do not complete this clause, or complete it incorrectly, no entry will be made.

See section 5.12 of practice guide 64: prescribed clauses leases.

1.2.13 LR13: application for standard form of restriction

This clause can be used to apply for standard form restrictions only. The standard form restrictions are prescribed in Schedule 4 to the Land Registration Rules 2003. If you do not complete this clause no entry will be made unless you make a specific application using form RX1.

See section 5.13 of practice guide 64: prescribed clauses leases.

1.2.14 LR14: declaration of trust where there is more than one person comprising the tenant

This clause must be completed with the appropriate declaration of trust where the tenant named in clause LR3 is more than one person or body.

If neither clause LR14 nor a form JO are completed and lodged with the application, we will enter a Form A restriction by default when the tenant is more than one person or body.

If the tenant is one person or body but will hold the property leased on trust, you should not include a declaration of trust in clause LR14 but must instead apply for a Form A restriction using clause LR13 or form RX1.

See section 5.14 of practice guide 64: prescribed clauses leases and practice guide 24: private trusts of land.

1.3 Making an application to register a new lease granted to the same tenant

The following documentation is required for the registration of a new lease granted to the same tenant.

• Application form AP1.

• A certified copy of the new lease, which must:

  • be executed by the landlord

  • contain prescribed clauses, unless it falls within the exceptions to the definition of ‘prescribed clauses lease’ in rule 58A(4) of the Land Registration Rules 2003. See section 2.2.1 of practice guide 64: prescribed clauses leases, and

  • include details of the surrendered lease if the new lease is drawn by reference to the terms of it

• The appropriate Stamp Duty Land Tax or Land Transaction Tax certificate.

• A certified copy of the surrendered lease, if the new lease is drawn by reference to the terms of it or where that lease is not registered or noted. The certified copy lease may be either of the original lease or of the counterpart lease. If you are not able to supply a copy of the lease in either of these forms please account for its absence. We usually need to consider the contents of the lease being surrendered.

• The consent of the landlord’s mortgagee, if required (see section 2.1 of practice guide 28: extension of leases).

• The consent of any superior landlord, if the superior lease requires such consent to be obtained (see section 2.1 of practice guide 28: extension of leases).

• Any consent or other evidence required by a restriction affecting the landlord’s title.

• Any charges or deeds of substituted security. A deed of substituted security must be executed by borrowers and, when it contains a discharge, the lender. Unless the deed of substituted security is an approved form of charge containing an application for a standard form of restriction and/or a further advances obligation, applications in form RX1 and/or form CH2 should be lodged if there is a restriction in the register relating to the original charge or an entry relating to an obligation to make further advances.

• A certified copy of any power of attorney required.

• Any required form RX1 (for restrictions not included in clause LR13 - see LR13: application for standard form of restriction).

You must also deal with any incumbrances on the existing leasehold title and, where appropriate, lodge evidence to support their release, withdrawal or cancellation to enable the title to be closed.

• Registered charge – either a discharge or deed of substituted security containing clear words of release of the charge must be lodged.

• Restriction – a form RX3 for its cancellation or form RX4 for its withdrawal must be lodged.

• Unilateral notice – form UN2 for removal or form UN4 for cancellation must be lodged.

• Home rights notice – form HR4 accompanied by the appropriate evidence must be lodged. The appropriate evidence is described in section 8 of practice guide 20: home rights and applications under the Family Law Act 1996.

• Other notices, including equitable and noted charges – form CN1 must be lodged.

1.4 Making an application to register a new lease made under the Leasehold Reform, Housing and Urban Development Act 1993

Please note that if the new lease is being granted under the Leasehold Reform, Housing and Urban Development Act 1993 the legislation provides that any charges on the surrendered lease will transfer automatically and consequently HM Land Registry do not require a deed of substituted security to be lodged.

The following documentation is required for the registration of the new lease when an existing tenant exercises their right under the Leasehold Reform, Housing and Urban Development Act 1993 to acquire a new lease.

• Application form AP1. Panel 2 must include the title numbers in prescribed clauses LR2.1 and LR2.2 in the lease, the title number of the surrendered lease and of any intermediate leasehold titles.

• A certified copy of the new lease, which must:

  • be executed by the landlord

  • contain prescribed clauses, unless it falls within the exceptions to the definition of “prescribed clauses lease” in rule 58A(4) Land Registration Rules 2003. See section 2.2.1 of practice guide 64: prescribed clauses leases

  • include in prescribed clause LR5 the appropriate statement described in section 5.3.3 of practice guide 27: the leasehold reform legislation, prescribed by rule 196(2) Land Registration Rules 2003 or refer to the clause, schedule or paragraph of a schedule in the lease containing it

  • be for a term expiring 90 years after the surrendered lease would otherwise have expired and at a peppercorn rent, and

  • include details of the surrendered lease if the new lease is drawn by reference to the terms of it (but note the new lease must be drawn expressly as a lease and cannot be a deed of variation of the existing lease)

• When the applicant has not been the tenant for the previous two years, evidence of a qualifying tenant serving notice of their claim to a new lease under the Leasehold Reform, Housing and Urban Development Act 1993 together with assignment of the benefit of the notice will be required.

• Particulars of any leases intermediate between the landlord’s title and the new lease. See section 5.3.4 of practice guide 27: the leasehold reform legislation. The title number(s) of those intermediate lease(s) must be included in panel 2 of the form AP1.

• The appropriate Stamp Duty Land Tax or Land Transaction Tax certificate.

• A certified copy of the surrendered lease, if the new lease is drawn by reference to the terms of it or where that lease is not registered or noted.

• Consent of the landlord’s mortgagee, if required (without this, whilst registration is still possible, we will sometimes need to include a protective entry indicating that the lease may not bind the landlord’s mortgagee if it exercises its powers – see section 9.3 of practice guide 27: the leasehold reform legislation).

• Any consent or other evidence required by a restriction affecting the landlord’s title (other than a restriction in favour of the landlord’s mortgagee).

• A certified copy of any power of attorney required.

• Any required form RX1 (for restrictions not included in clause LR13 - see LR13: application for standard form of restriction).

You must also deal with some types of incumbrance on the existing leasehold title and, where appropriate, lodge evidence to support their release, withdrawal or cancellation to enable the title to be closed (see section 9.8 of practice guide 27: the leasehold reform legislation).

• Restriction – a form RX3 for its cancellation or form RX4 for its withdrawal must be lodged unless a corresponding restriction is applied for against the new lease.

• Unilateral notice – form UN2 for removal or form UN4 for cancellation must be lodged unless the notice relates to the tenant’s right to a new lease under the Leasehold Reform, Housing and Urban Development Act 1993 and the new lease is in conformity with it.

• Other notices, including equitable and noted charges – form CN1 must be lodged unless the notice relates to the tenant’s right to a new lease under the Leasehold Reform, Housing and Urban Development Act 1993 and the new lease is in conformity with it.

1.5 Making an application to register a deed of variation

The following documentation is required for the registration of a deed of variation which varies the length of a registered lease by increasing the term or adds new land to the extent demised by a registered lease (and so in either case effects a surrender and regrant by operation of law).

• Application form AP1.

• A certified copy of the deed of variation, which must be executed by the landlord and tenant.

• The appropriate Stamp Duty Land Tax or Land Transaction Tax certificate.

• A certified copy of the lease.

• When the new leasehold estate is held by more than one person or body you will need to provide a declaration of trust. This can be provided by completing form JO. If the tenant is one person or body but will hold the property leased on trust, you must apply for a Form A restriction using form RX1.

• Consent of the landlord’s mortgagee, if required (see section 2.1 of practice guide 28: extension of leases).

• Consent of any superior landlord, if the superior lease requires such consent to be obtained (see section 2.1 of practice guide 28: extension of leases).

• Any consent or other evidence required by a restriction affecting the landlord’s title.

• Any charges or deeds of substituted security. A deed of substituted security must be executed by borrowers and, when it contains a discharge, the lender. Unless the deed of substituted security is an approved form of charge containing an application for a standard form of restriction and/or a further advances obligation, applications in form RX1 and/or form CH2 should be lodged if there is a restriction in the register relating to the original charge or an entry relating to an obligation to make further advances.

• A certified copy of any power of attorney required.

• Any required form RX1.

You must also deal with any incumbrances on the existing leasehold title and, where appropriate, lodge evidence to support their release, withdrawal or cancellation to enable the title to be closed.

• Registered charge – either a discharge or deed of substituted security containing clear words of release of the charge will be required.

• Restriction – a form RX3 for its cancellation or form RX4 for its withdrawal must be lodged.

• Unilateral notice – form UN2 for removal or form UN4 for cancellation must be lodged.

• Home rights notice – form HR4 accompanied by the appropriate evidence must be lodged. The appropriate evidence is described in section 8 of practice guide 20: home rights and applications under the Family Law Act 1996.

• Other notices, including equitable and noted charges – form CN1 must be lodged.

2. Things to remember

We only provide factual information and impartial advice about our procedures. Read more about the advice we give.