When purchasing property, most people expect that the title register will provide a complete picture. However, not all rights connected to a piece of land are visible on the register. Some important legal rights, known as overriding interests, can affect your property even though they are not formally recorded.

At Ashtons Legal, our property law team helps clients uncover and deal with these often-overlooked issues before they become legal or financial headaches.

What Are Overriding Interests?

In simple terms, overriding interests are rights or claims that attach to land even though they do not appear on the official Land Registry title. Despite being “off the record,” these interests can still affect buyers, sellers, and mortgage lenders.

They tend to come into play when:

• A property is registered for the first time, or
• Ownership of registered land is transferred to someone new.

Because these rights are not always easy to spot, buyers and professionals need to carry out careful checks before any transaction is completed.

Examples You Should Know About

Short-Term Leases

Leases that last less than seven years generally do not have to be registered. That means a buyer could purchase a property and still be bound by a lease they did not know existed unless steps are taken to identify it during due diligence.

Occupants With Rights

One of the most significant examples is a person who is physically living at the property, often called someone in “actual occupation.” If they also have a financial stake in the property or other occupancy rights, and those rights have not been formally given up or waived, they may still bind the new owner.

This situation often arises in:

• Relationship and family breakdowns
• Informal living arrangements
• Cases where someone contributed to the purchase price but is not on the title.

Buyers and lenders need to be alert to signs of occupation that are not obvious from the documents alone.

Rights of Way and Easements

Some longstanding rights, such as access across land, may still apply, even if they are not on the title. These can sometimes be spotted during physical inspections or in replies to legal enquiries.

Customary or Local Rights

Certain older rights, such as chancel repair obligations or manorial rights, may still exist in some cases. These rarely come up now but are worth checking, especially with rural or historic land.

Why It Matters to You

Overriding interests can complicate a sale, delay a mortgage approval, or even result in a dispute after you have moved in. For lenders, they can reduce the value or security of a property loan.

If not handled correctly, these interests could mean:

• Someone claims a right to stay in the property after it is sold.
• There are ongoing legal duties tied to the land.
• You face unexpected costs or court action.

At Ashtons, we work to uncover these risks as early as possible so you can move forward with confidence.

Watch Out for Sale-and-Rent-Back Scenarios

One area where this issue often comes up is when a seller continues to live in the property after it is sold, sometimes on an informal agreement.

Even if it seems straightforward, this can become a legal grey area. Courts have held that unless the seller’s right to stay is protected in a formal, legal way, it will not override the buyer’s title. So, if you are buying or lending in one of these situations, it is critical to take legal advice before proceeding.

Changes in the Law: What Is Still an Overriding Interest?

Some rights that used to override registration, such as manorial rights, certain mining rights, and chancel repair liabilities, lost that special status after 12 October 2013, unless a notice was entered on the title register.

That means many properties will not be affected anymore unless they have not changed ownership since before that date. It is still important to check, particularly with land that has been in the same hands for decades.

What You Should Do Before Buying

To minimise risk, buyers and their legal teams should:

• Visit the property or arrange a survey to look for signs of occupation or use.
• Ask the seller specific questions about who lives there and what rights exist.
• Make sure the property is being sold with vacant possession, unless otherwise agreed.
• Get confirmation from anyone living at the property that they will leave, and, where necessary, have them sign a formal legal waiver.

Lenders also require confirmation that no one else has a legal right to stay in the property, often asking for signed declarations from other adult occupiers.

Contact our Property Disputes solicitors today

If you have purchased a property and later discovered it is subject to an overriding interest, such as a right of way, lease, or equitable interest, it can have serious implications for your use and enjoyment of the land.

Our Dispute Resolution team at Ashtons Legal can advise on the potential for removing or mitigating the impact of these rights. We can also assess whether there may be grounds for a professional negligence claim against your conveyancer or surveyor, or a misrepresentation claim against the seller.

If you have any questions regarding the points raised in this article, please get in touch with our specialist Property Litigation team by using our online enquiry form or calling 0330 404 0738.