Registering your flat purchase after completion

Most people expect when they purchase a flat that completion day is the day that the process, well... completes. But in reality, there is a lot of additional work and documents to resolve in order to register the purchaser as the official, lawful owner.

But why is it so complicated? Usually because nobody stops to explain it - and so this is our breakdown of the "post completion" process that you'll probably go through whenever you buy a flat in England or Wales.

Why does it take so long, just add my details already?!

The most common reason this question crops up is when a new leaseholder is trying to speak with the managing agent, but then they find out their name, email address and phone number are not in the system. This then delays any payments, charges, repairs or communication for the new buyer - right after all the stress of buying and moving!

The problem is that agents should not change the name of the owner on their software system, simply because the buyer or the seller emails them. There are a whole range of issues, ranging for ownership and liability, or ownerless property, right up to fraud prevention - but the short answer is, the agent depends on other people completing the process. This usually takes a bit of time when there are 1 or 2 solicitors involved, as well as the Land Registry, and the agent is often at the end of this chain.

Sign up for Membership or Shares

In most cases, a block of flats will be managed by a Residents Management Company (RMC) or Right To Manage (RTM) company. These companies are a collection of leaseholders, or flat owners, who come together to manage, maintain and repair the shared areas and facilities. In order to be part of this group, a new owner must apply for membership or a shareholding within the company - this is what then entitles you to vote on company matters and repairs, receive accounts, or become a Director. Without this, you have much less control in the running of the building - and while it may not bother you, inevitably a future purchaser will want to be part of the company.

Practically speaking, the company must also have members and Directors to continue to exist - otherwise it will dissolve, and the residents lose control (and potentially lose ownership!) of the property. You probably wouldn't want the seller to hang on to their voting rights either, so it is for the best that you replace them!

Take Notice... of Transfer, Assignment or Charge

Most leases require Notice of Transfer, or similar - Assignment, Charge, etc. Simply put, you must give formal Notice to the manager or freeholder of the change of ownership. This tells them that the property has been transferred (or assigned) from one person to the next. Notice of Charge is also used to advise of charges, which is typically a mortgage against the flat.

This Notice must come from your solicitor. There are of course a range of reasons, usually related to debts or fees, why a person may try to sell a property without due process. People are also keen to buy property with shortcuts, whether it is to get a discount, avoid tax or even launder money. Therefore a registered solicitor, who completes essential identity and Customer Due Diligence checks. This helps to prevent fraud, coercion or illegal activities - as well as basic errors or innocent oversights.

Deed of Covenant

If you've looked at your lease, you will probably see it is a 30-50 page document of jargon and old-fashioned English. However at the end, there is normally 1-2 pages containing the Deed of Covenant. This DoC acts as a summary of the lease, and is effectively the signing page - the buyer promises (covenants) to comply with all the restrictions and requirements set out in the lease. This is much easier than a 50 page lease flying around between different parties...

While there is some debate about the specific scenarios and structures in which a DoC may or may not be required, generally if the lease requires it then the manager or freeholder will insist that it be signed and provided. This makes sense, since it effectively ensures that the buyer will perform their obligations, and receive the services and support that are set out within the lease.

What is the agent's role in all of this? CoC

The managing agent is usually employed by the RMC, RTM or freeholder to carry out their duties on their behalf. As such, the agent will undertake any actions required within the lease.

Lease usually require all of the above, or at least some combination of them - membership, Notice, and Deed. But why would a purchaser go to all that trouble, if they either don't notice the requirement or simply can't be bothered?

That's where the agent then gets involved, and provides a Certificate of Compliance (CoC). The CoC is used to confirm that the terms and requirements of the lease have been complied with, and that the correct Notice and Deed have been provided. It effectively certifies a job done properly.

Typically your conveyancer needs to present this when they formally register you as the new owner of the property. When they apply to the Land Registry, which keeps a record of the owners of all the land and property in the UK, then they will have to ensure they comply with any Restrictions noted. Without this, your conveyancer cannot register you at the Land Registry, and you do not become the legal owner of the property. Aside from other complications, this would prevent you from selling the property in future - since you don't technically own it.

But why is it so expensive?

Like most things involving solicitors, prices tend to be quite high. There's also often multiple parties involved at each stage, including not only your conveyancer, but potentially the sellers solicitor, the managing agent, perhaps a separate agent for the freeholder, and perhaps even a separate RTM. Most, if not all, of these companies will charge for their time to process and administer the work required, and so this can quickly rack up if extra tasks are needed.

We also see that some solicitors leave their dealings with the managing agent until the last minute, which might incur additional costs either for expedited work, or potentially cancelled and resubmitted Land Registry applications. It may be worth asking your solicitor to engage with the agents early on, to avoid any delays down the line.

How long will it all take?

This really depends on how many parties are involved in the process. Most commonly we see time frames between 2 months and 2 years - though it can even take longer. The deciding factor is often how proactive your solicitor is to get submitted Notices and documents early, and if there are multiple different parties involved, whether they understand the role of each and chase them accordingly. The Land Registry also tends to be a law unto themselves, historically allowing 6-12 months to handle applications, which can be a long time to wait without seeing any real progress.

Realistically most sales should be fully registered and concluded within 4-6 months of the completion day, but with so many parties that can be involved it is impossible to predict for any single property.

What can I do to help?

Firstly, do not assume there is nothing else to do. A good conveyancer will have provided you all the documents and applications prior to completion, however if anything has been missed they will come back to you for signing. It is worth checking in with your conveyancer a couple of weeks after completion to confirm they have applied to the Land Registry for you, or if anything else is needed.

Of course, signing the documents you are provided will help keeping things on track. If you have any questions you should of course ask your solicitor or the agent, but the documents should all make logical sense if read carefully.

As above, if anything has been missed or simply not returned, it is worth chasing that party to process and progress the matter. Sometimes things can be easily overlooked or directed to the wrong person, so a gentle nudge now and again can go a long way to keeping things moving.

Reaching out to your managing agent is always a good idea too. Even if they cannot formally record you as the new owner, they should at least be able to make a note of the expected change and react accordingly - avoiding potential penalty fees for you or the seller. It also means they have details to contact you in an emergency, for example if someone reports a leak, as well as knowing who you are in case you contact them about other queries.

If you have any questions about the process or concerns with things that are not progressing, get in touch with our team today at info@lovepm.co.uk and we'll do our best to help.