Most title issues are manageable. The ones that cause real problems are the ones discovered too late.
A rentcharge identified early in a transaction, before a lender has been instructed or before exchange is in sight, gives everyone time to understand its implications, take the right steps and keep the matter moving. The same rentcharge identified on the eve of exchange, with a lender requirement to redeem it before they will release funds, is a different situation.
What historical rentcharges are and why they still matter
A rentcharge is a periodic payment secured against freehold land. Most were created before 1977 and, under the Rentcharges Act 1977, existing rentcharges will be extinguished by 22nd July 2037 or 60 years from the date they first became payable (whichever is later). Until then, they remain live obligations and need to be treated as such.
The right of re-entry is the most significant risk. Where a rentcharge owner holds a right of re-entry, failure to pay (even a modest historic sum) can give them the right to take possession of the property.
The concerns raised in Roberts v Lawton (2016) remain an important part of how lenders and practitioners approach rentcharges, and while legislative reforms introduced by the Leasehold and Freehold Reform Act 2024 have changed aspects of the enforcement landscape, historic rentcharges continue to attract lender scrutiny.
Estate rentcharges are a separate category entirely and are not subject to the 2037 extinguishment date – the two are often confused, which can lead to the wrong assessment being made.
The commercial impact of late discovery
When a rentcharge, or any title issue, is identified late, the consequences tend to follow a familiar pattern.
The lender raises an unexpected requirement, additional enquiries need to be raised and, depending on what the title shows, indemnity insurance or a deed of release may need to be arranged before exchange can happen. The client needs to be updated, timelines shift and fee earners spend time troubleshooting a problem that, if identified earlier, could have been straightforwardly managed.
Rentcharges are one example of this. The same pattern plays out with unregistered titles, defective lease provisions and missing easements, to name but a few. What makes them difficult is discovering them at the point in a transaction when there is least time and least room to deal with them.
Early identification is the difference
The earlier a title issue is identified, the more time there is to deal with it properly. That means time to understand what the lender is likely to require, advise the client, raise the right enquiries and put the right steps in place before exchange.
When the same issue surfaces late, a week before exchange, for example, or after a lender has come back with requirements, the options narrow quickly. What might have been a straightforward piece of advice becomes something that needs to be resolved under pressure, with a transaction waiting behind it and a client expecting to exchange.
For teams already carrying high caseloads, that kind of pressure is hard to absorb. And it is almost always avoidable.
How ntitle helps conveyancers identify title risks earlier
Historical rentcharges are one example of the title issues our investigators pick up during the course of a title investigation. Others include unregistered land, defective lease provisions, restrictive covenants, missing easements, Land Registry defects and broken lease structures.
Whatever the issue, finding it early makes a practical difference. It gives the firm time to assess what it means, understand any lender requirements and keep the transaction moving, rather than troubleshooting under pressure.
Through our title investigation, management pack reporting and search reporting services, ntitle helps conveyancing firms identify title risks at the start of a transaction, so they can make informed decisions before issues become obstacles to completion.
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To find out more about how ntitle handles specialist title investigation, contact us at info@ntitlesolutions.com, call 0333 242 2929 or request more information.
