Guidance

Practice guide 64: prescribed clauses leases

Updated 6 February 2023

Applies to England and Wales

Please note that HM Land Registry’s practice guides are aimed primarily at solicitors and other conveyancers. They often deal with complex matters and use legal terms.

1. Introduction

The Land Registration Rules 2003 (as amended by the Land Registration (Amendment) (No 2) Rules 2005) require most leases that are both:

• dispositions of a registered estate in land, and
• required to be completed by registration

to include a standard set of clauses that must appear at the beginning of all such leases. HM Land Registry will prepare the register entries to complete registration of the lease from the information in these clauses so it is important they are completed correctly.

This guide provides detailed information about the registration of prescribed clauses leases and other leases where the prescribed clauses are used. It will help you to complete a prescribed clauses lease to meet HM Land Registry requirements. The guide also states the consequences of either completing incorrectly, or failing to complete the prescribed clauses, when required.

2. Applications affected by the changes

We will need only certified copies of deeds or documents you send to us with HM Land Registry applications. Once we have made a scanned copy of the documents you send to us, they will be destroyed. This applies to both originals and certified copies.

2.1 Leases which must contain the prescribed clauses

Except as mentioned in Exceptions to the general requirement, leases since 19 June 2006 must contain the prescribed clauses where the lease is a disposition of a registered estate in land and is required to be completed by registration under section 27(2)(b) of the Land Registration Act 2002 (rule 58A(4) of the Land Registration Rules 2003). This includes the grant of a lease out of an unregistered estate in land where the owner of the reversionary estate was subject to a duty to apply for the estate to be registered under section 6 of the Land Registration Act 2002 when the lease was granted (rule 38 of the Land Registration Rules 2003).

Note: you cannot apply to register a lease granted out of an unregistered estate in land which someone was under a duty to apply to register until an application to register that superior estate is made. For further details, see practice guide 1: first registrations.

2.2 Exceptions to the general requirement

2.2.1 Leases that do not have to contain prescribed clauses

In a limited number of circumstances, a lease out of a registered estate in land and required to be completed by registration, does not have to contain the prescribed clauses (rule 58A(4)(c) and (d) of the Land Registration Rules 2003).

A lease does not have to contain the prescribed clauses when it is granted in a form expressly required either:

• by an agreement entered into before 19 June 2006 (a written agreement for lease will normally contain a complete copy of the agreed form of the lease itself)
• by an order of the court
• by (or under) an enactment (but see Note 1)
• by a necessary consent or licence for the grant of the lease given before 19 June 2006 (for example, by a superior landlord or chargee of the landlord)

Additionally, a deed varying a lease that takes effect as a surrender and re-grant of the leasehold estate does not have to be a prescribed clauses lease (but see Note 2). This exception applies whether or not the original lease was a prescribed clauses lease.

Note 1: to claim exemption under an enactment the lease must be drawn up in a form which is expressly required under an Act, not merely granted pursuant to that Act, or containing particular provisions (such as easements) specified by that Act.

Note 2: the exemption only applies to a deed of variation that effects a variation of the lease by extending the term or demised extent of the existing lease and is therefore a ‘deemed surrender and regrant’. The exemption does not apply where, although a deed is expressed to be a deed of variation, its terms actually provide for the express surrender of the existing lease and the grant of a new lease in substitution for it. For more information see, practice guide 28: extension of leases.

A lease granted before 19 June 2006 did not have to contain the prescribed clauses but a lease granted between 9 January 2006 and 18 June 2006 could, if the parties agreed, include the prescribed clauses on a voluntary basis.

2.2.2 Certificate required where exception claimed

If you are claiming that your lease falls within one of the exceptions listed in Leases that do not have to contain prescribed clauses, you must include a certificate by a conveyancer (or some other satisfactory evidence) with your application that sets out why you claim that the lease is not a prescribed clauses lease (rule 58A(2) of the Land Registration Rules 2003). If you do not do this, we will be unable to accept your application (see Defective applications).

It is important that you make this claim and lodge the appropriate evidence where your lease falls within one of the exceptions, so that HM Land Registry is aware of this fact. Also, where an excepted lease contains the prescribed clauses, HM Land Registry will need to consider the application for registration of the lease on the basis set out in Treatment of excepted leases containing prescribed clauses.

2.2.3 Treatment of excepted leases containing prescribed clauses

If you use prescribed clauses in a lease falling within one of the exceptions listed in Leases that do not have to contain prescribed clauses, we will not just rely on those clauses to complete registration. This is because rule 72A(2) of the Land Registration Rules 2003 places HM Land Registry under an obligation, on completion of the registration of an excepted lease, to make entries in the register in respect of matters which are of the nature referred to in clauses LR9, LR10, LR11 and LR12, when appropriate. In these cases we will also check the lease for any prohibition or restriction on disposal and make an entry as required by rule 6(2) of the Land Registration Rules 2003.

In these cases you can still use clause LR13 to apply for the registration of a standard form of restriction.

However, we are not obliged to make any entries in respect of matters which are of the nature referred to in clauses LR9, LR10 or LR11 or a restriction referred to in clause LR13 which may affect registered titles other than that relating to the demised land or out of which the lease is granted unless the title number(s) are given in panel 2 of form AP1 or a specific application (form AP1, form RX1, form AN1 or form UN1 as appropriate) (rule 72A(4)(b) of the Land Registration Rules 2003) is made.

2.3 Voluntary use of prescribed clauses in applications for first registration

You can prepare a new lease that is subject to first registration using the prescribed clauses. However, this is not compulsory.

In completing an application for first registration, HM Land Registry must examine the unregistered title and enter in the register a notice of the burden of any interest that appears from this examination to affect the registered estate (rule 35(1) of the Land Registration Rules 2003), including relevant matters contained in a lease. Therefore, we will continue to examine, as usual, the contents of such a lease, rather than relying solely on the contents of the prescribed clauses.

If you make an application for first registration using the prescribed clauses, we will accept an application for entry of a standard restriction made in clause LR13, no form RX1 is required in these circumstances (see LR13).

2.4 Where the prescribed clauses should appear in a lease

The prescribed clauses must appear at the front of the lease. When the lease contains a front sheet, the prescribed clauses may appear immediately after that front sheet.

Rule 58A(4) of the Land Registration Rules 2003 defines a ‘front sheet’ as “a front cover sheet, or a contents sheet if it is at the lease’s beginning, or a front cover sheet and contents sheet where the contents sheet is immediately after the front cover sheet, and a ‘contents sheet’ means a contents sheet or index sheet (in each case, however described) or both”.

3. General points on completion of prescribed clauses

3.1 Prescribed clauses do not require a separate document

The prescribed clauses set out in Schedule 1A to the Land Registration Rules 2003 are an integral part of the document and must form part of the bound and executed lease. The counterpart lease must also contain the prescribed clauses.

3.2 Prescribed clauses are not an HM Land Registry application form

As mentioned in Prescribed clauses do not require a separate document the prescribed clauses are an integral part of the lease. You may, however, use clause LR13 to request the entry of a standard form of restriction. Additionally, we will, where appropriate, make entries in the register of the matters contained or referred to in clauses LR8, LR9, LR10, LR11, LR12 and LR14 for which, in some cases, a separate application would otherwise be required. You will still need to lodge either form FR1 or form AP1, as appropriate, to register prescribed clauses leases.

A prescribed clause lease is not one of the HM Land Registry application forms listed in Schedule 1 to the Land Registration Rules 2003 and is not, therefore, subject to the requirements regarding font, ruling and point size set out in rules 210 and 211 of the Land Registration Rules 2003. However, we would expect the prescribed clauses to be as legible as other parts of the lease.

3.3 How prescribed clauses are to be presented

Although Schedule 1A to the Land Registration Rules 2003 presents the prescribed clauses in the form of a table, you are only obliged to include the text of the clauses in a prescribed clauses lease. You may omit any or all of the lines in order to make the prescribed information fit more easily with the layout of the rest of the lease. It is acceptable for side headings in the table to appear as normal headings if you choose to present the information without table lines.

3.4 Things that you can omit from the prescribed clauses

Generally, you may omit or delete:

• all words in text that is italicised, or bold and italicised (for example, “Title number(s) out of which this lease is granted. Leave blank if not registered.”)
• inapplicable wording where a clause provides more than one option (for example, “This lease does not contain a provision that prohibits or restricts dispositions.” OR “This lease contains a provision that prohibits or restricts dispositions.”)

You must not omit either:

• the numbered headings (for example, “LR9. RIGHTS OF ACQUISITION OR TERMINATION”)
• sub-headings (for example, “LR9.2 Tenant’s covenant to (or offer to) surrender this lease”) from your lease, even where the remainder of the lease contains no information that would require you to complete them

If you have no information to place in a prescribed clause, you may either:

• insert ‘None’
• leave it blank

3.5 When you can omit a prescribed clause where it is not relevant

You may only omit or delete the whole of:

• clause LR13 (where you are not making an application for the registration of a standard restriction)
• clause LR14 (where the tenant is one person or, where the tenant is more than one person, a completed and signed form JO will be lodged with the application for registration of the lease)

Note: If you omit clause LR13 but include clause LR14, do not re-number clause LR14. You may find it easier to simply include both clauses and insert ‘None’.

3.6 How to set out the information required

3.6.1 General guidance

Each prescribed clause contains instructions in curly brackets indicating how you should complete the information requested.

Some prescribed clauses require you to make one statement from a number of options (for example, clause LR14). Where this is the case, you may either omit or delete the inappropriate wording.

Other prescribed clauses require you to insert information regarding the contents of the lease. In this case, you may generally either:

• set out the information in full
• cross-refer to the relevant clause, schedule or paragraph of a schedule of the body of the lease that contains the information

Note 1: some prescribed clauses specify the precise method of completion. In those cases, the instructions in curly brackets will tell you how to complete them. Detailed information on how to complete each prescribed clause appears in The prescribed clauses.

Note 2: you should not combine alternative methods of completion of a prescribed clause. For example, in clause LR4, you should either set out a full description of the property leased or refer to the relevant part of the body of the lease which contains such a description–you should not set out a partial description of the property in clause LR4 and then also cross-refer to a part of the body of the lease containing a further description. However, a simple reference to the property address in clause LR4 combined with a reference to a more detailed description in the relevant part of the body of the lease will be acceptable.

Note 3: you should not amend the headings of the prescribed clauses, even if different terms or definitions are used in the remainder of the lease – in this event you may include a cross reference to the term or definition used in the remainder of the lease, if this will avoid confusion.

Note 4: where ‘defined’ words or expressions are being used in the prescribed clauses, this should be made apparent or a reference to the relevant definition clause in the body of the lease should be included within the prescribed clauses.

3.6.2 Cross references to other parts of the lease or to incorporated documents

Where you have the option to cross refer to clauses within the lease, you must ensure that you refer precisely to all relevant clauses. Please do not make general reference to either:

• ‘All such matters in the lease’
• the contents of a numbered page (unless no other form of description is appropriate)

Where the lease contains 2 or more provisions that are relevant to the prescribed clauses, you should include in the prescribed clauses a cross reference to all of the relevant provisions.

Wherever possible, you should avoid using long ‘chains’ of cross references when completing the prescribed clauses, unless it is necessary for clarity or to reduce the scope for misinterpretation of the lease. For example, if a prescribed clause refers to a particular provision in the body of the lease and that provision in turn refers to other provisions in the lease, it should not normally be necessary to specifically refer to those other provisions in the prescribed clause.

You may, if necessary, refer in a prescribed clauses lease to provisions contained in an incorporated document. This may be the case, for example, where the terms of the lease are granted by reference to the terms of an existing lease of the property; or where an underlease incorporates the terms of the headlease by reference. In such a case:

• a certified copy of the incorporated document should ideally be attached to the lease or lodged with the application for registration
• it must be clear from the prescribed clauses which document is being referred to
• if the lease and the incorporated document both contain provisions that need to be included in the prescribed clauses, you should refer to both in those clauses

3.7 What to do if you make an error in completing a prescribed clause

It is vitally important that you take care in completing the prescribed clauses. HM Land Registry will complete registration of a prescribed clauses lease based solely on the information provided in them.

The consequences of providing incorrect or incomplete information regarding the contents of the lease are considered in more detail in The prescribed clauses. In addition, Omissions from and amendments to prescribed clauses leases sets out our requirements where we have completed an application based on either incorrect or incomplete information in a prescribed clause.

3.8 What to do if you are unsure whether a provision should appear in a prescribed clause

If you are uncertain as to whether a provision of a lease should be included in a prescribed clause or not, you should include it.

We will examine the provisions of the lease to which you refer in the clauses and only make entries where appropriate. Any matters referred to or set out in the prescribed clauses that are not capable of registration or noting will not appear in the register.

4. Defective applications

Practice guide 49: return and rejection of applications for registration sets out the general criteria under which HM Land Registry will reject applications for registration that are substantially defective (rule 16(3) of the Land Registration Rules 2003). The requirements set out in that guide apply equally to prescribed clauses leases.

Additionally, applications for the registration of prescribed clauses leases (meaning those referred to in Leases which must contain the prescribed clauses) granted on or after 19 June 2006 will be rejected where either:

• they are not drawn up in the correct manner
• clause LR4 has not been completed

Note 1: the rejection criteria above that specifically apply to prescribed clauses leases do not apply to any lease where use of the prescribed clauses is not compulsory.

Note 2: See Applications affected by the changes, regarding retention of documents sent to us. This means that if your application is returned you will receive copies of the scanned documents.

Also, applications for the registration of leases which do not have to contain the prescribed clauses (meaning those referred to in Leases that do not have to contain prescribed clauses) will be rejected where the appropriate certificate or other satisfactory evidence referred to in Certificate required where exception claimed) is not lodged.

5. The prescribed clauses

5.1 LR1 - Date of lease

Complete clause LR1 with the date of the lease. It would be helpful if you do so in the form of, for example, ‘25 June 2006’ as this is the format in which HM Land Registry records such dates.

5.2 LR2 - Title number(s)

5.2.1 LR2.1

Complete clause LR2.1 with the title number(s) of the property of the landlord out of which the lease is granted.

If the prescribed clauses lease is granted between a trigger to first registration of the reversion and its lodgement, no title number(s) is required (rule 38(1) of the Land Registration Rules 2003). The same applies to a lease using the prescribed clauses lodged as part of an application for first registration.

5.2.2 LR2.2

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.

If you do not complete this panel correctly, we are not obliged to make an entry of the matters contained or referred to in those clauses unless you make a separate application in respect of them (rule 72A(4) of the Land Registration Rules 2003). Where the separate application is made in form AP1 and is for the grant or reservation of an easement, you must specify the particular clause, schedule or paragraph of a schedule in the lease where the easement is contained (rule 72A(5) of the Land Registration Rules 2003).

5.3 LR3 - Parties to this lease

Complete clause LR3 with the full names and addresses of the landlord, tenant and (where applicable) any other parties to the lease. You must set out the parties in full in this clause. Do not refer to descriptions elsewhere in the lease.

Do not amend the headings of ‘Landlord’ and ‘Tenant’, even if this is not how the parties are described in the remainder of the lease – in this event you may include a cross reference to the description in the remainder of the lease, if this will avoid confusion.

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 italic text.

If there are other parties (such as a management company or guarantor), give their full names, addresses, capacity in which they are a party to the lease and company registration details (as above) under the heading ‘Other parties’. If the only parties to the lease are the landlord and tenant, you may omit or delete the ‘Other parties’ heading.

5.4 LR4 - Property

5.4.1 General points regarding completion of clause LR4

Complete clause LR4 with either:

• a full description of the property leased
• a reference to the clause, schedule or paragraph of a schedule in the body of the lease that describes the land demised

Where the property description is being set out in clause LR4, the description should include the full postal address where available (including the postcode). The description should also include reference to any plan attached to the lease.

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.

If you do not complete this panel, we will be unable to accept your application where use of the prescribed clauses is compulsory (see Defective applications).

Note: the requirement for a plan in any prescribed clauses lease affecting part of the land in a registered title is a change to the general circumstances in which a lease must include a plan showing the land leased. For further details, see practice guide 40: HM Land Registry plans. Please also remember that if the plan attached to the lease is insufficient, we will be unable to accept your application – please see practice guide 49: return and rejection of applications for registration.

5.4.2 Exclusions from the land being leased

A lease sometimes contains an exclusion of corporeal property from the land leased. Examples of such property that may be excluded are:

• mines and minerals
• timber and trees
• items of archaeological or historical interest
• mineral or hot water springs
• stream beds
• roads
• rides

A lease may also contain a provision to the effect that the benefit of an existing easement appurtenant to the landlord’s title is excluded from the demise. See section 10 of practice guide 62: easements, for more information about provisions preventing the passing of easements on the grant of a lease.

Complete clause LR4 so as to include either details of any such corporeal or incorporeal property excluded from the land being leased or a reference to the relevant provision in the lease. (Clause LR11 can be used instead, but it is better dealt with in LR4.)

5.4.3 Extension of an existing lease

If the new lease being granted is an extension of an existing lease, a declaration is required in LR4 along the following lines:

“This lease takes effect subject to but with the benefit of the existing lease dated ……”

This requirement does not apply to extensions contained in deeds of variation.

5.5 LR5 - Prescribed statements

5.5.1 LR5.1

Clause LR5.1 requests details of any statement required under statute, the precise wording of which is set out in rules 179, 180 or 196 of the Land Registration Rules 2003. Details of these statements are required in either:

• a lease in favour of a charity (Statement required by section 122(8) of the Charities Act 2011, in the form prescribed by rule 179 of the Land Registration Rules 2003)
• a lease by a charity (Statement required by section 122(1) of the Charities Act 2011, in the form prescribed by rule 180 of the Land Registration Rules 2003)
• a lease granted under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993 (Statement required by section 57(11) of the Leasehold Reform, Housing and Urban Development Act 1993 required in any new lease granted under section 56 thereof, in the form prescribed by rule 196(2) of the Land Registration Rules 2003)

You can find further details of the circumstances in which the required statements must be given (and their form) in:

• practice guide 14: charities: advice for applications to be sent to HM Land Registry
• practice guide 27: the leasehold reform legislation

Where one of these statements is required, you must either:

• give the statement in full in clause LR5.1
• refer to the clause, schedule or paragraph of a schedule in the body of the lease that contains the statement in full

5.5.2 LR5.2

5.5.2.1 General points regarding completion of clause LR5.2

If a lease is made under, or by reference to, the provisions of any of the following Acts it affects the way in which HM Land Registry must deal with the application:

• Leasehold Reform Act 1967
• Housing Act 1985
• Housing Act 1988
• Housing Act 1996

If a lease is not made under, or by reference to the provisions of one of those Acts, you should omit or delete all of them.

Where a lease is made pursuant to one of those Acts, leave the reference to that Act in and omit or delete those that do not apply. You need only refer to the Act by name – do not refer to the individual section(s) or schedule(s) that apply to the lease. We will examine the lease to establish precisely which provisions of the Act affect the disposition and take the appropriate action.

5.5.2.2 Background information

A frequent example of a lease made by, or under the terms of, one of the Acts listed in clause LR5.2 is a right to buy lease made under the provisions of the Housing Act 1985. Such a lease will contain the following matters that require entry in the register:

• the statutory easements referred to in paragraph 2 of Schedule 6 to the Housing Act 1985 (unless specifically excepted)
• a covenant by the tenant to repay the discount given under the right to buy if they dispose of the property within a certain period of time (this covenant is known as a discount charge and takes effect as a legal charge on the property)

The Housing Act 1985 obliges HM Land Registry to make entries in the tenant’s register of both of these provisions, without application from the tenant. Public sector landlords draw up their own precedent documents for disposals under the Housing Act 1985, which means that there is no standard layout for such leases. Currently, such a lease may refer to any or all of the following parts of the Housing Act 1985 in any part of the lease, making accurate identification difficult.

• Section 156
• Part V
• Sections 118 – 188
• Schedule 6

Requesting a reference to the legislation as part of the prescribed clauses will make identification of the application more straightforward for HM Land Registry staff and ensure that the correct entries appear in the register.

5.6 LR6 - Term for which the property is leased

Clause LR6 requests details of the term for which the land referred to in clause LR4 is demised. Complete the appropriate statement from the 3 shown.

We appreciate that the terms of some leases do not take a ‘from… to…’ format. The second and third options of clause LR6 in particular are intended to allow sufficient flexibility to deal with any types of term that may arise.

Describe the term of the lease by either:

• giving details of the start and end dates of the term (for straightforward terms)
• referring to the clause, schedule or paragraph of a schedule in the lease containing details of the term
• setting out details of the term in full in this clause

5.7 LR7 - Premium

5.7.1 General points regarding completion of clause LR7

Complete clause LR7 with details of any premium paid. Do not refer to the clause, schedule or paragraph in the body of the lease that contains this information.

If no premium is being paid, either insert ‘None’ or leave this clause blank.

Where the premium includes an element of VAT, include this in the figure by stating for example, ‘£100,000 plus VAT of £17,500’ or ‘£117,500 inclusive of VAT’. Do not simply refer to VAT generally, for example ‘£100,000 plus VAT’.

In the absence of evidence in the lease, or other papers lodged, that VAT was payable, HM Land Registry will assume that the consideration or premium and rent quoted in a deed includes any VAT element payable.

5.7.1.1 Background information

Under the Value Added Tax Act 1994, VAT at the standard rate is payable in respect of certain commercial property transactions involving land.

HM Land Registry will assess the fees on the VAT inclusive sum and use the information in clause LR7 to make an entry in the register of the price paid. For more information about the entry of price paid data in the register, see practice guide 7: entry of price paid or value stated in the register.

5.8 LR8 - Prohibitions or restrictions on disposing of this lease

Clause LR8 requests information (in general terms only) about whether the lease contains any prohibition or restriction on disposal by the tenant. Delete or omit the inappropriate wording in this clause.

HM Land Registry will make an entry in the register where clause LR8 is completed with the second of the 2 options (rule 6(2) of the Land Registration Rules 2003). Do not set out in full or refer to the relevant clause(s) in the lease containing the prohibition or restriction, as the form of entry in the register is not dependent on the wording of the lease.

If you do not complete this clause correctly (meaning including or omitting both statements) HM Land Registry will not make an entry of the restraint on disposal unless you make a separate application in form AP1 (rule 72A(3) of the Land Registration Rules 2003). If you do apply separately in form AP1, you must state the particular clause, schedule or paragraph of a schedule where the restraint on disposal is contained in the lease (rule 72A(5) of the Land Registration Rules 2003).

5.9 LR9 - Rights of acquisition etc.

5.9.1 LR9.1

Complete clause LR9.1 with details of any contractual rights in favour of the tenant to either:

• renew this lease
• acquire the reversion
• acquire another lease of the property
• acquire an interest in other land

You may either:

• set out the full text of the relevant provision
• refer to the clause, schedule or paragraph of a schedule in the body of the lease that contains the option or right

If any rights or options in favour of the tenant affect title numbers other than the landlord’s title mentioned in clause LR2.1, HM Land Registry is only obliged to make an entry of the interest where you list these additional title(s) in clause LR2.2 (rule 72A(4)(a) of the Land Registration Rules 2003).

If you do not complete this clause HM Land Registry is not obliged to make an entry of the interest unless you make a separate application in form AN1 or form UN1 (rule 72A(3) of the Land Registration Rules 2003).

5.9.2 LR9.2

A lease may contain a covenant or obligation by the tenant to surrender (or to offer to surrender) the lease to the landlord in particular circumstances for example, before assigning the lease. Such a provision may constitute an estate contract (even though no payment may be made for the surrender) and therefore an interest affecting the leasehold estate (Greene v Church Commissioners [1974] Ch 457).

HM Land Registry will record the existence of such an interest by making the following note to the particulars of the lease in the tenant’s title:

“NOTE: The lessee is under an obligation to [offer to] surrender the lease in the circumstances therein mentioned.”

Complete clause LR9.2 with details of any:

• covenant by the tenant to surrender the lease
• covenant by the tenant to offer to surrender the lease

You may either:

• set out the full text of the relevant provision
• refer to the clause, schedule or paragraph of a schedule in the body of the lease that contains the covenant

If you do not complete this clause HM Land Registry is not obliged to make an entry of the interest unless you make a separate application in form AN1 or form UN1 (rule 72A(3) of the Land Registration Rules 2003).

Note: HM Land Registry will not make any entry in respect of any such covenant forming part of a ‘frustration’ clause which includes a requirement as to service of notice.

5.9.3 LR9.3

Complete clause LR9.3 with details of any contractual right on the part of the landlord to acquire the lease. An example of such a right would be a right of pre-emption (meaning a right of first refusal on the part of the landlord, should the tenant decide to sell the leasehold title). Note the right for a landlord to apply to the court for an order for possession under section 61 of the Leasehold Reform Housing and Urban Development Act 1993 is a statutory not a contractual right and should not be entered in clause 9.3.

HM Land Registry will record the existence of such an interest by making the following note to the particulars of the lease in the tenant’s title:

“NOTE: The lease contains a right of pre-emption.”

You may either:

• set out the full text of the relevant provision
• refer to the clause, schedule or paragraph of a schedule in the body of the lease that contains the option or right

If you do not complete this clause, HM Land Registry is not obliged to make an entry of the interest unless you make a separate application in form AN1 or form UN1 (rule 72A(3) of the Land Registration Rules 2003).

5.10 LR10 - Restrictive covenants given in this lease by the landlord in respect of land other than the property

Complete clause LR10 with 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.

You may either:

• set out the full text of the covenants
• refer to the clause, schedule or paragraph of a schedule in the body of the lease that contains those covenants

If you do not complete this clause, HM Land Registry is not obliged to make a separate entry of the covenants unless you make a separate application in form AN1 or form UN1 (rule 72A(3) of the Land Registration Rules 2003).

If any restrictive covenants bind land in registered titles other than the landlord’s title(s) mentioned in clause LR2.1, HM Land Registry is only obliged to make an entry of the interest where you list these additional title(s) in clause LR2.2 (rule 72A(4)(a) of the Land Registration Rules 2003).

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

5.11 LR11 - Easements

5.11.1 Important change in practice

Please note that the requirements and practice set out below represent an important change in the way that HM Land Registry deals with easements contained in leases (that is, prescribed clauses leases).

It is now your responsibility to complete clause LR11 correctly to refer to all easements in the lease that benefit the property and to which the property is subject. Unless you make a separate application, any easements in the lease that are not referred to in this prescribed clause:

• will not be completed by registration
• will not appear in the register of affected titles

5.11.2 General points regarding completion of clause LR11

You must complete this clause by referring to the clause, schedule or paragraph of a schedule in the lease that contains the easements – do not set out the easements in full. This is because easements contained in leases are normally lengthy and we want to reduce the risk of error that would be associated with setting them out in full here.

Note what is said in Exclusions from the land being leased about clauses preventing the benefit of an existing easement from passing to a tenant.

5.11.3 LR11.1

Complete clause LR11.1 with details of easements contained in the lease for the benefit of the tenant’s property.

Easements contained in the lease for the benefit of the Property are a registrable disposition (section 27(2)(d) of the Land Registration Act 2002) and do not take effect at law until completed by registration. If you do not complete this clause HM Land Registry is not obliged to complete the easements by registration unless you make a separate application on form AP1 (rule 72A(3) of the Land Registration Rules 2003). Where you do apply separately, you must specify in a covering letter or on form AP1 (rule 72A(5) of the Land Registration Rules 2003) the particular clause, schedule or paragraph of a schedule in the lease where the easement is contained.

If any easements that benefit the tenant’s property burden land in title numbers other than the landlord’s title(s) mentioned in clause LR2.1, the easement will not operate at law until the registration requirements have been met, which means the burden must be noted in the appropriate register and the benefit entered in the leasehold register (section 27(1) and Schedule 2 to the Land Registration Act 2002). HM Land Registry is only obliged to complete the easements by registration by entering notice in the burdened register when you list these additional title number(s) in clause LR2.2 (rule 72A(4)(a) of the Land Registration Rules 2003) or make a separate application in form AP1. If we do not enter notice of the easement in the register of the burdened land we will not include the easement in the new leasehold title.

5.11.4 LR11.2

Complete clause LR11.2 with details of any easements granted or reserved over the land demised for the benefit of other land.

This includes easements:

• reserved to benefit land contained in the registered title(s) of the landlord out of which the lease was granted
• reserved to benefit land contained in other registered titles, of which the landlord is the registered proprietor
• granted or reserved to benefit land in a registered title of which a third party (for example, a management company) is proprietor
• granted or reserved to benefit unregistered land

If you do not complete this clause, HM Land Registry is not obliged to complete the easements by registration unless separate application is made on form AP1 (rule 72A(3) of the Land Registration Rules 2003). Where you do apply separately, you must specify in a covering letter or on form AP1 (rule 72A(5) of the Land Registration Rules 2003) the particular clause, schedule or paragraph of a schedule in the lease where the easement is contained.

Where the easements reserved benefit only the landlord’s title(s) referred to in clause LR2.1, no further action is needed. HM Land Registry will automatically enter notice of the burden of the easements reserved in the new leasehold register and refer to them in the landlord’s register when the lease is noted.

Where the easements benefit other registered titles, HM Land Registry is only obliged to complete the easements by registration when you enter the title numbers in clause LR2.2 (rule 72A(4)(a) of the Land Registration Rules 2003). If you do not do so HM Land Registry will enter notice of the burden of the easement in the leasehold register but will make no entry in the register of the benefiting land.

In this situation a separate application in form AP1 to enter the benefit of the easement in the appropriate register is needed to meet the registration requirements. If you apply separately, you must specify in a covering letter or on form AP1 (rule 72A(5) of the Land Registration Rules 2003) the particular clause, schedule or paragraph of a schedule in the lease where the easement is contained. The easement will not take effect at law until this application is made.

5.12 LR12 - Estate rentcharge burdening the property

Please note that the term ‘Estate Rentcharge’, as used in clause LR12, means a rentcharge as defined in section 1(2)(b) of the Law of Property Act 1925.

Complete clause LR12 with details of any estate rentcharge created by the lease.

You must complete this clause by referring to the clause, schedule or paragraph of a schedule in the lease that contains the estate rentcharge – do not set out the provisions in full.

Note: Do not refer in this clause to the rent(s) reserved by the lease, as such detail does not form part of the information required by the prescribed clauses.

If you do not complete this clause, HM Land Registry is not obliged to make an entry as to the burden of the rentcharge unless you make a separate application in form AN1 or form UN1 (rule 72A(3) of the Land Registration Rules 2003). We will not in any event substantively register the rentcharge unless specific application is made in form AP1.

5.13 LR13 - Application for standard form of restriction

5.13.1 Standard restrictions only allowed

Use clause LR13 to make an application for the registration of a standard restriction. Standard forms of restriction are listed in Schedule 4 to the Land Registration Rules 2003. You do not have to complete form RX1 as well. However, if you do not complete this clause HM Land Registry is not obliged to enter a restriction in the register unless you make a separate application (rule 72A(3) of the Land Registration Rules 2003) in form RX1 (rule 92(1) of the Land Registration Rules 2003).

If the required restriction is not a standard one:

• do not refer to it in this clause
• submit a completed form RX1 with your application

For more information see practice guide 19: notices, restrictions and the protection of third-party interests in the register – section 3.3.2 Restrictions not in standard form.

5.13.2 General points regarding completion of clause LR13

You may only alter the wording that appears in brackets. The words of application must always commence “The Parties to this lease apply to enter the following form of standard restriction …” Additionally, because we are always prepared to accept that the parties have executed both the original and counterpart lease, there is no need to submit the counterpart document when applying for the entry of a restriction against the tenant’s title.

Complete the initial words of application in this clause (starting, “The Parties…”) with the title number against which you wish to register the restriction. Delete the inappropriate one of the options offered. If the restriction is not for entry against the title number allotted to the land leased, complete the second option with the title against which it is to be entered.

If the restriction affects title numbers other than that allocated to the demised property referred to in clause LR4 or the landlord’s title(s) mentioned in clause LR2.1, HM Land Registry is not obliged to make an entry of the restriction unless you list these additional title(s) in clause LR2.2 (rule 72A(4)(a) of the Land Registration Rules 2003).

Enter the full text of the restriction, including any infills required. You must not:

• refer to the clause, schedule or paragraph of a schedule of a lease that contains the restriction
• refer to the restriction by its letter in Schedule 4 to the Land Registration Rules 2003 (for example, ‘Form A’, ‘Form N’)

For more information on drafting restrictions relating to the covenants contained in a lease, see practice guide 19A: restrictions and leasehold properties.

5.13.3 Restriction affects part only of a registered title

Unlike panel 3 of form RX1, prescribed clause LR13 does not allow the applicant to specify where only part of a registered title is affected by a restriction. However, you may use clause LR13 to apply to register a standard restriction against part only of a title as long as you clearly define what part of the title is affected.

If the restriction affects only part of a title, you must incorporate a description of the affected part within the wording of the restriction along the lines set out below (rule 91A(1) of the Land Registration Rules 2003). As long as the wording is sufficient to identify the part of the title intended to be affected by the restriction, we will accept it. The description may take the form of either:

• a verbal description (for example, “No disposition of [the part of] the registered estate [known as 22 Smith Street] by the proprietor of the registered estate is to be registered …”)
• a reference to the plan attached to the lease (for example, “No disposition of [the part of] the registered estate [shown edged blue on the plan to the lease] by the proprietor of the registered estate is to be registered …”)

Please note that we will only accept a verbal description of the property (for example 22 Smith Street) where the precise extent of that property can be clearly identified on the Ordnance Survey map.

5.13.4 More than one restriction required

You may wish to apply for more than one standard form of restriction in the lease. If so, repeat the initial words of application (“The Parties to this lease apply to enter the following standard form of restriction”) after the text of the first restriction and complete the rest of the wording as instructed above.

5.13.5 Limits on use of clause LR13

Clause LR13 does not contain the full wording of form RX1. There are, therefore, limits on the use of clause LR13.

In particular, additional evidence may be required to register a restriction in some cases. Clause LR13 does not provide for the applicant to supply additional evidence of entitlement to register a restriction. These situations are dealt with in practice guide 19: notices, restrictions and the protection of third party interests in the register.

These applications are likely to be uncommon in the registration of prescribed clauses leases. However, where additional evidence is required, you must provide a statement following the wording of the appropriate panel on form RX1 and either:

• the necessary evidence from that referred to in panel 8 of form RX1, or (where appropriate)
• a certificate that you hold the additional evidence

5.13.6 Obligation to enter restriction under statute

HM Land Registry is sometimes obliged to enter restrictions in the register without any request (rule 95 of the Land Registration Rules 2003). Full details of the circumstances in which we make such an entry are set out in practice guide 19: notices, restrictions and the protection of third party interests in the register.

There is no requirement for you to complete prescribed clause LR13 in order to enter such a restriction. We will identify when these restrictions are appropriate.

5.14 LR14 - Declaration of trust where there is more than one person comprising the tenant

5.14.1 General points regarding the completion of clause LR14

Complete clause LR14 with the appropriate declaration of trust where the tenant named in clause LR3 is more than one person or body. Alternatively, you may choose to complete form JO. Form JO is designed as an alternative means for joint owners to declare trusts at the time of acquisition. and to address the practical difficulties that conveyancers might face in securing execution of the lease by each lessee within the condensed timescale of a normal conveyancing transaction.

If the lease is in favour of one tenant only, you may either:

• omit or delete all the alternative forms of wording
• omit or delete clause LR14 entirely

This declaration of trust relates to the original tenants named in clause LR3 only.

You can find information regarding the effect of these statements, form JO and the entries in the register that may arise from them, in practice guide 24: private trusts of land.

5.14.2 Sole proprietor: entry of Form A restriction

You may wish to reflect the existence of a trust by the entry of a restriction in Form A against a sole proprietor. If so, you should apply for it using clause LR13.

For further details and examples of where such a restriction may be required, see practice guide 24: private trusts of land - section 8.3 Bare trusts.

6. Omissions from and amendments to prescribed clauses leases

The information in this section applies only to prescribed clauses leases granted on or after 19 June 2006.

6.1 General information regarding omissions and amendments

One or more of the prescribed clauses may either:

• not have been completed
• have been completed incorrectly
• conflict with a provision elsewhere in the lease

Where the error or conflict results in us either making an entry that you do not feel is correct, or omitting an entry from the register, you may wish to make a separate application to amend the register.

Depending on their nature, omissions, errors and discrepancies in the prescribed clauses can be resolved by either:

• an additional application
• an amendment under paragraph 6(e) of Schedule 10 to the Land Registration Act 2002 and rule 130 of the Land Registration Rules 2003
• a deed of rectification

You may apply either:

• when lodging the lease for registration
• while the lease is in the process of registration
• after registration has been completed

6.2 Additional application for an entry in a register

Where an error or omission in the completion of clauses LR2.2 or LR8 to LR14 inclusive has resulted in the omission of an entry, you must make an additional application. You must not alter the prescribed clauses yourself after registration or ask us to amend them and make the appropriate entry.

The application must be made using the appropriate application form.

If you prepare a deed of rectification (see Deed of rectification of a lease), you must submit the appropriate application form.

Where you must apply using form AP1 and the application to make the entry is being made at the same time as the lease is being registered, the request should be included in panel 4 of that application form.

Applications for entries in respect of restraints on disposal or grants of easements must specify the particular clause or schedule containing the restraint or easement in panel 4 of form AP1.

If the additional application is made after the application to register the lease has been completed, the appropriate fee under the current Land Registration Fee Order must be paid (see HM Land Registry: Registration Services fees).

You must provide any consents or certificates required to comply with any restrictions entered in the register and where appropriate (for example, in the case of the grant of easements) the consent of any chargee, unless these were provided when the lease was registered.

Note: If a restriction has been entered or an entry made after the lease was registered, but before the additional application is received, any consent required by that restriction or entry must be provided.

6.3 Amendment to the lease itself

Before registration is completed the parties to the lease may amend it to correct any errors or omissions in either the prescribed clauses, the body of the lease or any plan. These amendments should be made in the normal way and if necessary the lease should be re-executed.

Once the lease has been registered the parties must not amend it themselves. HM Land Registry can make limited amendments to correct clerical errors either before or after registration is completed. However, these amendments will be confined to:

• amendments to correct discrepancies in names
• small amendments to the prescribed clauses or other clauses in a lease to make them agree where information appears twice in a lease and there has been a copying error (for example, the date of the lease or the amount of premium)

In other situations (or where there has been a substantial copying error), HM Land Registry will not amend the lease:

• If the lease has not been registered, we will return it to the applicant so the parties can consider amending the lease.
• Where we have already completed registration, we will refuse such a request and invite the applicant to make an additional application or prepare a deed of rectification (if an additional application will not remedy the defect) and apply for registration of the deed

6.4 Deed of rectification of a lease

The prescribed clauses are an integral part of the lease and can be rectified in the same manner as any other clause. However, in most cases a deed of rectification should not be necessary. Where an error or omission in the prescribed clauses has resulted in an entry being omitted from the register, only an application to include the omitted entry is needed. The lease itself need not be rectified.

Most deeds of rectification will probably relate to the extent demised either because there is a discrepancy between clause LR4 and a description of the demised property elsewhere in the lease or the land demised in clause LR4 does not reflect that agreed to be demised in a prior agreement.

7. Things to remember

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