Section 12 — Restriction on title

(1) Subsection (3) applies where—

(a) the Chief Land Registrar approves an application for registration of a lease (the “registered lease”),

(b) section 11 applies to the registered lease, but

(c) the registered lease does not contain a statement made in accordance with subsection (2) or (3) of that section.

(2) An “application for registration of a lease” is an application for—

(a) completion by registration of a disposition of registered land, if that disposition is the grant of a lease, or

(b) registration of a lease within section 4(1)(c) of the Land Registration Act 2002.

(3) The Chief Land Registrar must enter in the register a restriction that no registrable disposition, other than the grant of a legal charge, of the registered lease is to be completed by registration.

(4) The restriction under subsection (3) may be removed if the registered lease is varied to include a statement made in accordance with section 11(2) or (3).

(5) Subsection (6) applies where—

(a) a restriction has been entered in the register in accordance with subsection (3) in relation to a registered lease, and

(b) the Chief Land Registrar approves an application for registration of a deed of variation relating to the lease by virtue of which a new lease takes effect as a deemed surrender and regrant of the lease.

(6) The Chief Land Registrar must enter in the register a restriction that no registrable disposition, other than the grant of a legal charge, of the new lease is to be completed by registration.

(7) The restriction under subsection (6) may be removed if the Chief Land Registrar is satisfied that the new lease—

(a) is not a long residential lease of a house, or

(b) is a permitted lease.

(8) An expression used in this section and in the Land Registration Act 2002 has the same meaning in this section as in that Act.