Variation of the extent - extent increased
Unless an error has occurred, a deed of variation should not be used to add additional land to a lease. - Where the land being added was omitted in error, and the deed makes this clear, the deed would be treated as a rectification of the lease.
An application to note the rectification should be made in form AP1. The original deed and a copy should be lodged. If only the original deed is lodged, it will be retained. - If the effect of the deed is to include additional land that was not part of the original bargain, the deed would be treated as a surrender and re-grant. An application to close the title to the original lease should be made in form AP1 together with an application in either form AP1 or FR1 as appropriate to register the 'new' lease. Again the original deed and a copy should be lodged. If only the original deed is lodged, it will be retained.
Please note that a surrender and re-grant can only occur where any charges that affect the existing leasehold title are either discharged or transferred to the new lease by way of a deed of substituted security. All other incumbrances must also be withdrawn or released.
If a discharge or deed cannot be supplied, or an incumbrance cannot be withdrawn or released, the existing leasehold title cannot be closed. In this case the new lease will be registered subject to the existing lease.
The next page looks at a variation where the extent of the land demised is decreased. |