'Ancient' land law loophole leaves English farms at risk of costly delays

English farming families could face major delays and unexpected costs because of an “ancient” loophole in land law, rural solicitors have warned.

Pepperells Solicitors says a significant amount of agricultural land remains unregistered, creating growing complications when farms are sold, refinanced or passed on.

Unregistered land can stall sales, mortgages and succession planning when proof of ownership is suddenly needed at short notice.

Although most modern property must now be digitally recorded, estimates suggest up to 15% of land in England and Wales is still not registered with HM Land Registry. The vast majority of it is rural.

Simon Rounding, Head of Rural at Pepperells, said the issue often stays hidden until the worst possible moment.

“The issue often only comes to light at the worst possible moment, when a farm is being sold, refinanced or used as security,” he said.

“At that stage, previously unregistered land must first be formally registered, a process that can significantly delay completion and increase legal costs.”

The problem stems from the Land Registration Act 2002, which sets out “trigger events” that make registration compulsory, such as a sale or mortgage.

However, inheriting land through a Will is treated as a “transmission” rather than a “transfer for value”. This means farms can be inherited for generations without ever appearing on the digital register.

Mr Rounding said some holdings have remained off the official map for more than a century.

“We are seeing a trend where generations of farmers have successfully passed down their holdings without ever triggering a legal requirement to register the land,” he said.

“Because registration is only compulsory during a sale or a mortgage, land that has stayed in the same family for over a hundred years often remains unregistered. It is effectively a secret held in a family safe.”

He warned that the difficulty only becomes clear once a transaction is already under way.

“At that point, families can face unexpected disruption while historic deeds are examined and first registration is completed.”

Many farming families still rely on original paper deeds — some dating back to the Victorian era — as proof of ownership.

While this has historically been sufficient, modern lenders and buyers increasingly require the certainty of a registered and clearly mapped title before proceeding.

With 68% of England’s land used for agriculture, experts say the scale of unregistered rural estates remains significant.

Pepperells said even where most of a farm is registered, small “slivers of land” can remain unrecorded, creating complications late in negotiations.

“Identifying these gaps late in the day during a sale or mortgage can lead to significant delays, renegotiations and additional costs,” Mr Rounding said.

“It is far easier and safer for an owner to deal with their land if it is already clearly mapped and registered.”

The firm is urging landowners to consider voluntary first registration now, rather than waiting until a sale or refinance forces urgent action.

Under the current Land Registry fee structure, voluntary registration attracts a 25% discount on standard “Scale 1” fees. For a farm valued at more than £1 million, this reduces the state fee to £830.

Mr Rounding warned that delaying registration may save money in the short term but risks creating a “legal fog” for future generations.

“A family business depends on the certainty of the ground beneath it,” he said.

“Delaying registration is itself contrary to a family’s best interests, as it leaves the estate open to administrative hurdles and legal challenges that didn’t exist when the original deeds were penned.”

The firm warned that failing to register land now could leave the next generation facing avoidable disruption and costly legal complications.