Plainlaw - did you know? - the law made plain - The land Registration 2002 - protecting commercially sensitive information

The Land Registration Act 2002 - Protecting commercially sensitive information
An update for Landlords

What is new?

All documents including leases and charges lodged at the Land Registry after 13 October 2003 are available to copy or inspect by anyone, this includes potential tenants, unless application has been made to make them confidential.
Remember, too, that more leases must be registered at the Land Registry since October 2003. Before last October leases of more than 21 years had to be registered. Now its leases of more than 7 years.

What does this mean for me as a Landlord?

This means that if you are letting sheds or units on a trade park or shopping centre, your tenants and prospective tenants can find out easily how much rent fellow tenants are paying for their premises. Negotiation of new leases, lease renewals and rent reviews may become more difficult.

How can plainlaw help?

Commercially sensitive information can be protected by specially applying to the Land Registry. You will need to show that your commercial interests would be prejudiced if specified information was made public. We can help you apply to have that information excluded from the register.

The Land Registry can designate a lease, for example, an "exempt information document" (EID) exempting from the public selected information.

When negotiating an Agreement for Lease terms can be included providing that the parties agree that certain information should be excluded.
Do not rely on your tenant making the application to exempt.
When you buy a property remember that if some information has been exempted by a previous owner you need to make a fresh application for exemption - the benefit of the Land Registry exemption cannot be passed from person to person.
Even if you have successfully applied to the Land Registry to exempt part of a document from public view, an individual can still apply to the Land Registry to see it - however, you will be notified and will be able to argue why confidentiality should be retained.

What should Landlords do next?

You need to start taking action now with new transactions. If you want to keep certain information e.g. rental values, confidential, you may want to issue heads of terms providing for this.

Between now and October 2005 you need to think about the need for exemption applications for documents already lodged at the Land Registry.

Who can help?

If you would like further advice about protecting commercially sensitive information please get in touch with your usual contact at plainlaw or Philip Horn on 01865 240202 or e-mail him on philip.horn@plainlaw.co.uk.

This edition of "The law made plain" is written to provide you with general information. It is recommended that you seek specific professional advice before taking any action.