233: Register of overseas entities owning UK property – Land Registry update

From 5 September 2022, Land Registry requirements kicked in for overseas entities owning UK property.

Overseas entities must now be registered on the Register of Overseas Entities (ROE) in order to own, purchase, transfer, lease or charge UK property.

Following on from our blog last month, here is an update of the provisions that will now affect UK property that is registered at the Land Registry in the name of an overseas company:

• overseas entities already owning property in the UK will face criminal sanctions if they do not apply to Companies House for a ROE registration number by 31 January 2023. This includes setting out their ownership structure, including the details of their registrable beneficial owners;
• the Land Registry has started adding restrictions to the titles of freehold and leasehold estates owned by overseas entities to prevent dealing with UK property unless a ROE number is provided;
• if the overseas entity was registered as the owner of the property at the Land Registry before 1 August 2022, the restriction will prevent them from dealing with the property after 1 February 2023 unless they are registered at Companies House by that date;
• if the overseas entity is registered as the owner of property after 1 August 2022 then the restriction will prevent dealing immediately after the point at which it is entered onto the relevant title by the Land Registry; and
• overseas entities seeking to purchase, lease or charge UK property must now have a ROE number before completing its dealing.  In order to obtain a ROE number, verification must be carried out by a regulated provider as part of an annual obligation.

If you have any enquiries or queries, please feel free reach out to our real estate team, who will be who more than happy to advise.