This section relates solely to options contained in leases. Options contained in separate deeds are covered in Appendix A of Land Registry Practice Guide 19 - Notices, restrictions and the protection of third party interests in the register.  

General points

Land Registry will only note an option or a right of pre-emption in the title carrying the burden of it. For example, we will enter in the landlord's title a tenant's option to purchase the reversion. Likewise we will enter in a tenant's title a landlord's right to buy the leasehold estate.

Break clauses

A break clause allows the relevant party (usually the tenant) to determine a lease before the expiry of the fixed term. If the clause is merely a provision to allow for the early determination of the lease, it is not an interest that affects a registered estate. It is a liability incident to the lease and cannot be noted in the register (see s12(4) LRA 2002 for first registrations, or s.29(2)(b) for registered dispositions)

Where there is an obligation to determine, this may give rise to an estate contract in favour of the landlord (Greene v Church Commissioners [1974] Ch 457) adversely affecting the tenant’s title. This can be noted as an agreed or unilateral notice.

The next page looks at other options in leases that can be noted.