Land Registration: Service of enfranchisement notice during “registration gap”
The High Court considers an appeal regarding service of an enfranchisement notice during the “registration gap”, identifying the appropriate reversioner during a transfer of the freehold.
The background
Bennets Courtyard Limited v Bennets Courtyard Airspace Limited [2026] concerns a development of 52 flats in Wimbledon, South London. Leaseholders wished to collectively enfranchise the building, including the residential development and an airspace lease, under the Leasehold Reform, Housing and Urban Development Act 1993 (“LRHUDA 1993”) and served an enfranchisement notice in December 2022.
The enfranchisement notice was served on Bennets Courtyard Freehold Limited, which had recently acquired the freehold from its predecessor in title. The transfer was completed prior to service of the notice, but the notice was served before registration of the transfer was completed at HM Land Registry.
In the County Court, the leaseholders’ claim was dismissed on the basis that Bennets Courtyard Freehold Limited was not the registered proprietor at the time the notice was served. An appeal was brought in the High Court.
The decision
The High Court dismissed the appeal, finding that legal ownership is determined by the party named as the registered proprietor at the date of service of the notice. The notice in this case had therefore not been validly served on the legal reversioner.
The leaseholders argued that the transfer had already been completed and Bennets Courtyard Freehold Limited owned the freehold at the relevant date. However, the High Court found that equitable ownership was not sufficient.
Under the LRHUDA 1993, the “person who owns the freehold” is the registered proprietor at the date the initial notice is served, even if the freehold has been transferred but not yet registered. Equitable ownership does not satisfy the requirements of the Act; only legal ownership determines the identity of the relevant reversioner.
Advice and action for landlords
Landlords will note this decision when undertaking a transfer of freehold, which confirms that the party named on the land register as the legal registered proprietor is the party on whom any notice should be served.
It is advised that landlords remain aware of the potential for service of any enfranchisement notice and react appropriately, even where a transfer of the reversion has been completed.
This position may also determine on whom other notices, such as break notices, should be served during a transfer of freehold reversion and any registration gap.