[2023] UKUT 284 (LC)

Before considering the facts in a little more detail it is necessary to refer to the applicable provisions of the Land Registration Act 2002 (the LRA 2002). Hereafter, statutory references are to the LRA 2002.

Interests in registered land may be protected either by a notice or by a restriction. In simple terms, a notice protects the priority of an interest, while a restriction prevents the registration of any disposition of a registered estate except in accordance with the terms of the restriction (see Megarry & Wade, The Law of Real Property (9^th ed., 2019) para. 6-069).

A person who claims to have the benefit of an interest affecting a registered estate may apply for the entry of a notice on the register the effect of which will be to protect the priority of their interest: ss.32, 34(1). An application may be made either for an agreed notice or for a unilateral notice: s.34(2). The priority of an interest may be protected by a unilateral notice without the agreement or cooperation of the registered proprietor.

A restriction is an entry in the register regulating the circumstances in which a disposition of a registered estate or charge may be the subject of an entry in the register:s.40(1).  A restriction may prohibit the making of an entry in respect of a disposition either indefinitely, for a specified period, or until the occurrence of a specified event: s. 40(2). A "specified event" can include the giving of notice or the obtaining of a consent: s.40(3)(a)-(b).

The Registrar has power to enter a restriction in the circumstances provided by s.42(1)-(2), as follows:

Anyone may object to an application for a restriction. If the Registrar considers that an objection is groundless, it will be cancelled and the application for the entry of the restriction will be determined. If the objection is not thought to be groundless, the Registrar will give notice of the objection to the applicant, and if the objection cannot be resolved by agreement between the applicant and the objector, the matter will be referred to the FTT. Until the objection is resolved the application for the restriction cannot be determined.