Leasehold Enfranchisement update: Understanding the "Registration Gap" — and why the Cresta Court case matters

Articles  |   16 September 2025

Written by
Jimmy Griffin, Solicitor

If you are buying the freehold of your building, extending your lease or thinking about forming a right to manage (RTM) Company — you may hear your solicitor talk about the “registration gap.” It might sound technical, but it’s something that can affect the legal process, especially now with a recent case making headlines. It can become problematic as registrations at HM Land Registry can take some time to complete. 

What is the Registration Gap?

The registration gap is the period of time between the completion of your matter and the moment the Land Registry updates their records to show you as the new proprietor. Historically, this was a short period of time, but since 2020 the period has been significantly longer.

The legal title to Leasehold and Freehold property does not pass until the new owner is registered at the Land Registry as the new proprietor. The buyer will be an owner in equity until registration. 

For unregistered property, the legal title passes on completion of the matter.  

This can create confusion when legal notices (like lease extensions or Right to Manage claims) are served.

Why does it matter?

The registration gap matters because some legal rights and notices depend on who is listed on the Land Registry, not just who has completed the purchase.

For example, if a leaseholder wants to extend their lease, or an RTM (Right to Manage) company serves a legal notice, whether the property is registered in the name of the new owner or not is vital to establish.

Recent Case Law – RTM claim — What you need to know

The recent court of appeal matter of Avon Freeholds Ltd v Cresta Court E RTM Company [2024] UKUT 335 (LC) has made it clear that the registration gap can create real risks, especially when it comes to serving the correct legal notices in relation to an RTM claim.

The issue:

  • A leaseholder had a new lease that had not yet been registered when an RTM company served a notice about taking over management.
  • Because they were not yet registered at the Land Registry, the RTM company did not send them a required notice.

The Court decided:

  • Even though the lease was not registered, the leaseholder still counted as a qualifying tenant because this was a new lease.
  • Because the required notice wasn’t served on them, the whole RTM claim was invalid.
     

The pre-claim due-diligence phase has become even more vital, with all qualifying tenants needing to be identified and additional checks need be made.

What this means for you

If you're buying your freehold, thinking about a lease extension or setting up an RTM Company, it will be essential to ensure that you serve all the correct notices on the correct people, ensuring you consider whether the freeholder is the correct party and if you are including any first leases not yet registered. 

How we can help

Thackray Williams can assist you with queries or concerns you may have regarding this, especially if you are thinking of buying your freehold, granting or receiving a new lease, considering a lease extension, or being involved in an RTM process. To speak to an expert in our Leasehold team, call us on 020 8290 0440.

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