Land Registry error proves expensive

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News article

Land Registry error proves expensive

July 2017

charles meynell

Working with his instructing solicitor and leading Counsel, Partner Charles Meynell has helped to secure significant compensation for a private landowner arising from an error by the Land Registry in the registration of title.

Background

When purchasing a country residence with substantial garden situated in South Derbyshire, our client obtained a Restrictive Covenant over adjoining land retained by the vendor to prevent building or change of use on the retained land.  Subsequently the adjoining land changed hands twice but upon first registration following the first disposal the Land Registry failed to register the Restrictive Covenant.  The subsequent purchaser bought without the knowledge of the Covenant and therefore the title was incapable of rectification.  

Outcome

Although instructed to advise upon the diminution in value of the client’s property Charles advised the correct basis of compensation was to assess the loss of commercial value in being able to release the Restrictive Covenant.

His argument was borne out following the grant of residential planning consent upon the adjoining land.  Following a very detailed assessment Charles’ report was submitted to HMLR, the principles were accepted in full and the quantum subject to only minor adjustment.  

The outcome was compensation approaching seven figures rather than a payment for the diminution in value which, whilst being subjective, would have been about one-tenth of the figure agreed.

Learning

The case highlights that registered titles can be incorrect and it was HMLR’s position that consequential loss can be compensated under the Indemnity Scheme and having accepted that a mistake had occurred agreed compensation accordingly under the Scheme.

For further information contact Charles Meynell on 01785 273999 or email here

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