Product Focus: Manorial Rights
Background The insured was the purchaser of land currently being used for agricultural purposes. The intention was to develop the land for residential housing pursuant to planning consent. Concern had arisen because the titles to the land were subject to manorial rights. Manorial rights date back to feudal times (1066 and later). They were reserved by the Lord of the Manor when land became freehold in the early 20th century. Those rights can include rights to mines and minerals, sporting rights such as hunting, shooting and fishing, and rights to hold fairs and markets as well as the ownership of any mines and minerals under the land.
Ramifications of risk The existence of manorial rights can be problematic. Since 13 October 2013, they must be protected by registration, either by registering them in their own right (in which case they will be noted as a burden on any title that is affected) or through protection pursuant to the registration of a notice on the affected title. Whilst many manorial titles have ceased to exist, and the majority of the remaining Lords are unlikely to exercise the rights, the burden will still be noted on the title of the affected land.
Call: +44 (0)207 160 8100 Email: info@firsttitle.co.uk Visit: www.firsttitle.co.uk First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.
Many lenders are unwilling to lend to borrowers unless this risk is resolved, so coverage is often sought to protect against any possible enforcement, even when the manor no longer exists. Particular concern surrounds the increased awareness of the value of the mineral rights increasing the risk that a Lord of the Manor may come forward as the mineral owner and attempt to enforce their rights and / or allege trespass if the foundations of the new buildings interfere with the mineral strata beneath the land. Where a Lord of the Manor does come forward, the developer is at risk of the manorial owner seeking to claim damages or an injunction against them.
Solution Following full consideration of the risk, First Title was able to provide a suitable policy to the insured and their Successors in Title providing cover in the event of any future enforcement against the exercise of the manorial rights. Cover includes: •
Legal costs in defending a claim in a court or tribunal.
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Damages, compensation, costs and expenses awarded by a court or tribunal.
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Costs in complying with any injunction awarded.
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Reduction in market value of the property as a result of someone successfully enforcing the rights.
Leading Title Insurance 1359-0919