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URGENT!!!! Priorities of Interest in land law/lease

I am so incredibly stuck and I can't seem to work the correct law out and I don't know who to turn to. There is a lease granted to someone for a term of 3 years on an outbuilding and someone is looking to buy that property that includes the outbuilding. It does not say whether the land is registered but it was 2006 so I'm assuming so. I just can't work out whether it would take priority or not or whether it would need to be registered because the law has confused me and I don't know what applies. Please help

Reply 1

GeneralStudent95

If the lease is three years or less, then it falls under the exception that it does not need to be created by a deed to be a legal interest. It will act as an overriding interest (taking priority) under Schedule 3, Para 1.

Reply 2

lawstudent18

Original post by GeneralStudent95

Thank you so much!
Does that still apply if within that lease there is an option to purchase the outbuilding within the term of the lease?

Reply 3

Mimir

Original post by lawstudent18

Thank you so much!
Does that still apply if within that lease there is an option to purchase the outbuilding within the term of the lease?

That would be a conditional contract (option) not an interest in the land. The option will, however, create an interest in the land when the conditions that would allow the right of first refusal to purchase the outbuilding are met (for example, the freeholder intends to sell). Then it is a right in the land and will bind any subsequent buyers if either the person with the option does not exercise this interest, or the interest is not overreached.