Possessory title and how to upgrade it

Possessory title is a class of registered title where HM Land Registry has registered the owner as proprietor, but at a lower level of guarantee than absolute title. HM Land Registry’s Practice Guide 42 describes these titles as rare, and says they are typically granted where the owner claims to have acquired the land by adverse possession, or where the owner cannot produce documentary evidence of title for some reason.

How it arises

The first route is adverse possession, where someone has occupied land long enough to claim it and has been registered on that footing. The second is lost or destroyed deeds. HM Land Registry’s Practice Guide 2 says that in most instances where title deeds have been lost or destroyed, it will grant a possessory title only. Evidence of possession is essential when a possessory title is granted.

The class of title is shown in the proprietorship register, and the date the property was first registered is in the property register, according to HM Land Registry’s guide to the three parts of a title register. It is worth looking for on any purchase.

The lending problem

The difficulty is commercial rather than legal. A possessory title carries a lower level of guarantee from HM Land Registry, and lenders set their own requirements for it, which can include indemnity insurance. Ask your broker or conveyancer what your lender requires.

Upgrading to absolute

Upgrading is done on form UT1 under section 62 of the Land Registration Act 2002, and there are two ways in.

The first is evidence. At any time after registration, HM Land Registry says a possessory title can be upgraded by producing additional evidence that remedies the reason the title was granted as possessory. Its example is deeds that were lost and have since come to light. The registrar applies the same standards as on a first registration.

The second is time. Once a possessory freehold has been registered for at least 12 years, the registrar may enter it as absolute if satisfied that the proprietor is in possession of the land. HM Land Registry’s guidance says the registration date is stated in the property register and is taken as the date on which the first proprietor was registered, so the 12 years does not restart when you buy. The registrar cannot use these powers while a claim adverse to the title is outstanding.

One distinction is easy to miss. On the 12 year route a possessory leasehold can be upgraded to good leasehold, not to absolute. Taking a leasehold title to absolute requires the landlord’s title to be shown as well.

What it costs

HM Land Registry’s fee for upgrading a title is £20 per title where the application is made through the portal or Business Gateway, and £40 where it is made by post or in person. These fees came into effect on 9 December 2024 and its page says they still apply.

No fixed fee is payable if the upgrade application accompanies an application on which a scale fee is payable. A transfer of a registered title for money and the registration of a new mortgage are both scale fee applications, so if you are selling or remortgaging anyway, lodging form UT1 with that application can mean no separate Land Registry fee for the upgrade. Your conveyancer may still charge for the extra work, so ask.

The interim fix

Where the 12 years are not up and no further deeds exist, a title indemnity policy can bridge the gap. It insures against a financial loss if the title is challenged, but it does not change the class of title on the register. Check the policy wording to see who it covers, including the lender and future owners. Our guide to indemnity insurance explains what these policies do and do not cover.

If you own a possessory title, look at the first registration date in the property register to see whether 12 years have already passed, and ask your conveyancer whether an upgrade could be lodged alongside your next sale or remortgage. It is also worth reading our guide to buying unregistered land if the property has not been registered before. Our guide on how to choose a conveyancer sets out what to compare, and you can compare conveyancing quotes if a possessory title is anywhere in your chain.