Mixed-use properties: Practical Law Property adds a new standard sale contract to its precedent library

Practical Law has recently published a new standard contract, which will be of key interest to local authority in-house property lawyers. The new contract is: “Contract for the sale of mixed-use freehold land subject to commercial and short-term residential leases”. The standard document incorporates the Standard Commercial Property Conditions (Third Edition – 2018 Revision) and is intended for use on the sale and purchase of a mixed use freehold property that is to be sold subject to one or more commercial leases and one or more short-term residential leases.

Whilst Practical Law does have a standard document dealing with the sale of freehold land subject to lease, the new contract addresses the nuances involved in working with a mixed-use site. In particular, the new contract covers:

• apportioning the purchase price between residential and non-residential parts
• differing treatment as to insurance refunds between residential and non-residential parts
• the provision of rent authority letters and residential lease notices.

Local Government  lawyers and property professionals are regularly required to deal with transactions involving mixed-use properties and this document will assist in standardising the contracts used for such projects. Practical Law precedent documents are widely viewed as market-standard, and use of the new contract should help to reduce drafting and negotiation time.

Practical Law has produced useful guidance notes on the new template and, as always, has included drafting options which can be tailored to the circumstances of the sale.   

How Capsticks can help

Capsticks has assisted numerous local authorities with the sale, purchase and development of multi-use properties. If you would like to discuss or have any queries as to the content of this article please contact Vicki Moore or Emilija Bucyte.

First registration applications: HM Land Registry updates Practice Guide 1

In-house property lawyers who deal with applications for the first registration of local authority land should take note of a recent update to Land Registry Practice Guide 1 (First registrations). 

The update took effect on 1 October 2024. For any first registration application lodged from that date, the Land Registry will no longer accept an application made up entirely of certified copy deeds and documents. These were previously accepted by virtue of a Direction of the Registrar under rule 24 of the Land Registration Rules 2003. This Direction has now been withdrawn.

The Land Registry will accept any applications for first registration comprised of certified copy deeds that were lodged prior to 1 October 2024 and are still pending.  

There is no change to the forms to be used when applying for first registration: forms FR1 (First registration application) and DL (documents list) must accompany the application, along with either form ID1 (verifying the identity of a citizen) or form ID2 (verifying the identity of a corporate body).

The checklist for first registration applications has been updated to reflect the change and can be found here.

How Capsticks can help

Our specialist local government advice is cost-effective and strategic, complemented by practical knowledge of your daily challenges, including supporting with first registration applications.

If you have any queries around this update or in connection with applications for the first registration of land more generally, please speak to Vicki Moore or Nanyamka Rapley.