The Register of Overseas Entities was launched on 1st August and the land registration elements will come into force on Monday 5th September – one week from today.
From this date, applications to HM Land Registry to register overseas entities as the proprietor of a qualifying estate will require an Overseas Entity ID from Companies House.
For more information, see Practice guide 78: Overseas entities. Details are as follows:
“This guide deals with the registration requirements for overseas entities, in particular the requirements when they differ from those for UK companies. The guide also includes some information about overseas companies, overseas limited liability partnerships and foreign states.”
What does the Register of Overseas Entity mean for conveyancers?
Listen to the podcast below – David Opie in conversation with Mike Ward, Executive Chairman of Armalytix.
How will the Register of Overseas Entities affect land transactions?
The Economic Crime (Transparency & Enforcement) Act 2022 requires overseas entities that own or acquire property in the UK to register with Companies House. The register was officially launched on 1st August 2022.
The planned date for the land registration elements of the Act to come into force on 5th September 2022 was designed to allow time for those currently engaged in a relevant land transaction to comply with the requirement to register with Companies House and obtain an Overseas Entity ID (OE ID) number before making an application to the relevant land registry.
How will this affect registered proprietors and property transactions?
The Act prohibits any application being made to HM Land Registry to register an overseas entity as proprietor of land unless, at the time of the application, the overseas entity has obtained its OE ID.
Overseas entities due to acquire land should start preparing to apply for an OE ID. Once the Act commences, they may need to apply promptly to Companies House in time so they can still apply for land registration within their priority search period. We must reject a land registration application if an overseas entity is needed but has not been provided.
Ultimately, the Act will prohibit overseas entities from transferring, leasing or charging their land unless, at the time of the disposal, they have obtained an OE ID.
There are some exceptions that apply. In particular, anyone who successfully applies to register a transfer, lease or charge from an overseas entity that owned land when the Act commenced will not be prevented from registering the disposition by a restriction on disposition if they make their application within the first six months of the Act taking effect.
If you are negotiating to buy, lease or take a mortgage from an overseas entity, remember: the provisions of the Act preventing the registration of dispositions by overseas entities that already own land will only affect the application to HM Land Registry to register your disposition if you lodge it more than six months after the Act commences.
