Putting a Form LL restriction on your property is a good way to protect yourself against fraud. A Form LL restriction means there can be no disposition of the property without a conveyancer certificate confirming that the person disposing of the property is the registered owner, but let’s look at how and why you may need to remove it.
Why remove it?
Removing the Form LL restriction can mean your property could be vulnerable to fraud, but there are times when removing the restriction makes sense. If the Form LL restriction is in place, you will need to verify your identity in front of a solicitor for any changes you make, such as remortgaging the property.
When selling, the conveyancer must sign the certificate confirming your identity in their own name rather than that of their company. If you want to sell your property, a Form LL restriction can slow down the conveyancing process. This could cause problems for the sale, particularly if your buyer, the seller of the property you wish to purchase, or anyone else in the chain is in a hurry.
As cancelling a Form LL restriction removes a safety measure to protect your property against fraud, it is a good idea to consider other ways to protect yourself against fraud and cybercrime. More information on the steps you can take is available from Action Fraud
How to cancel
Cancelling a Form LL restriction is usually a straightforward process. You will need a solicitor to verify your identity. While once this would have meant a visit to a solicitor’s office, many legal firms – such as https://www.parachutelaw.co.uk/form-ll-land-registry-restriction – now offer this service via a video conference. Assuming the solicitor is happy you are the legal owner, they will issue a certificate of compliance.
The second step is to submit a form, known as Form RX3, to HM Land Registry. A solicitor can do this. There will no longer be restrictions in place once this has gone through, and you will be able to remortgage or sell the property.
How long property restrictions last
A Form LL restriction is one of several kinds of restriction that can appear on a property title. Others include restrictive covenants, which limit how a property is used, such as residential use only, or how it is developed, for example the height of new buildings. Any restriction can affect a property’s value and what an owner is allowed to do with it.
There is no single answer to how long a restriction lasts. Some set out a specific period, some are shaped by local laws and others stay in place for as long as the property exists. The title documents or the legal agreement behind the restriction will show which applies.
A Form LL restriction is different because the owner chose it, so it can be removed whenever the owner decides, often to speed up conveyancing when selling. Other restrictions cannot simply be ignored. A solicitor can look for clauses that allow removal, negotiate with the other parties involved, or apply for an order to change or lift it.
Why a Form LL restriction is worth having
Before thinking about removing a Form LL restriction, it helps to understand why so many owners add one. With more transactions and identity checks now done online and remotely, the risk of fraudulent property sales has grown. A tenant with convincing identity documents could, for example, persuade a solicitor that they own the home and sell it without the real owner knowing.
HM Land Registry advises that a Form LL restriction should be part of the conveyancing process. Once it is on the title, the property can only be sold or leased after a qualified solicitor or conveyancer has verified the owner’s identity and provided a certificate.
Any owner can benefit, but some are at higher risk: landlords letting their property, owners whose property is empty, and those living overseas for long periods. The exact form used at the Land Registry depends on how the property is held, whether by one owner, several owners or a company, but the protection works the same way and greatly reduces the chance of fraud.
