Birmingham Council Lease plans to register their interest on title deeds?

I have just been notified that Birmingham Council is planning a change to the scheme in which they lease private sector properties. The implication is that it would require the title deeds of the property to be updated to register their lease interest.

My first reaction is what the heck? Why would I want to have this on my deeds it’s surely never going to be in my interests especially when it’s the council asking.

Clearly, I have no experience with this – anyone with a more legal head than I care to explain in layman’s terms please the implications.

Contract: P0*** Private Sector Housing Scheme:

Note for Landlords on change to Lease Term. The original P0*** Private Sector Housing Scheme has a commencement date of 4th May 2022 and completion date of 3rd May 2028. The contract was for an initial term of 6 years with an option to extend for a further 4 years.

In September 2023 the council issued a S114 Notice ( The council’s forecast income is insufficient to meet its forecast spending), this led to the appointment of external Commissioners who are working with the Council on a programme to identify and implement significant cost savings.

As part of the savings programme, the Council has elected to take up the 4 years extension option and additionally request that an additional 1 day is added – taking the contract term up to 10 years
plus 1 day. With the contract exceeding 10 years, the Council can enter discussions with the DWP to secure some relief against the subsidies paid to support this contract.

Making this change now means that the leases held with Landlords will exceed 7 years. This means that the Council will be required by law to register their lease interest in each property with the Land Registry.

With this in mind:

a. The Council will pay for a firm of solicitors to work with service providers and landlords to carry out the activities (please see below) necessary to: surrender the existing leases and grant of a new lease; and

b. register the councils lease interest with Land Registry. The Council will pay for any stamp duty costs arising from this activity.

c. In the future when the lease comes to an end (whether via the 90-day break option or expiry of the lease term), the Council will consent closure of the Council’s leasehold title and remove the notice of the lease from your title to the property – responding to requests within an agreed period e.g. 15 working days.

While the lease agreement will be updated to reflect clauses relating to registration with the Land Registry, all other elements including the entitlement for the landlord to serve 90-days’ notice, and
the annual CPI increase will remain the same.

Overview: The process for completing the new lease and the steps for registration.

1. The Council’s solicitors will obtain title details from the Land Registry and will check whether there are any title restrictions that need to be dealt with in order to allow the lease to be registered.

2. The Council will then issue you with the lease to sign. The lease must be executed as a deed, which means that you will need to sign in the physical presence of an independent witness, who will also need to sign and fill in their details in the lease signing block. You must not add a date to the lease because the Council’s solicitors need to carry out pre-completion checks before the lease is dated (which is when it comes into legal effect).

3. The Council will also provide details of any title restriction(s) that requires action by you. For example, if the property is mortgaged, there will be a restriction in favour of your mortgage lender

4. If you are not instructing a solicitor to act on your behalf in connection with the new lease, you will also need to complete a Land Registry identification form and have this certified by an appropriate legal professional.

5. Once you have signed the lease, obtained any required certificates, and completed the Land Registry identification form, these documents will need to be returned to the Council.

6. The Council’s solicitors will then check that everything needed to allow registration has been provided. If everything is in order, a pre-completion search will be carried out via the Land Registry.

7. The lease will then be dated (completed), bringing it into legal effect.

8. The Council’s solicitors will then submit an application to register the lease at the Land Registry.

9. The time period for this registration to be completed is typically 18 to 24 months. In the meantime, the pending application will be visible via Land Registry’s records.

10. On completion of registration the Land Registry will create a leasehold title for the Council’s lease. The lease will also be noted against your title to the property.

11. In the future when the lease comes to an end (whether via the break option or expiry of the lease term), the Council will consent closure of the Council’s leasehold title and remove the notice of the lease from your title to the property.

Reluctant Landlord

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