Lexsure’s October 2026 Report on Title update contains six suggested paragraphs covering escalating ground rent, leasehold alterations, manorial rights, climate search results, HMO licensing and deposits released to developers.
Each addresses a situation in which a buyer needs to understand the practical consequences of the documents, including restrictions on their plans, uncertain expenditure, future mortgageability or the possible loss of money paid before completion.
Following our September Report on Title update, this month’s wording gives conveyancing firms further material to consider when reviewing their main precedent and optional reporting clauses.
1. Ground rent doubling every 25 years
A ground rent clause can affect more than the buyer’s annual payment. Its amount and review mechanism may influence mortgage availability, future saleability and the cost of addressing the lease terms.
The October wording considers a leasehold flat with ground rent doubling every 25 years. It prompts the conveyancer to explain the actual clause, check the requirements of the lender on the purchase and distinguish those requirements from the approach a future buyer’s lender might take.
It also addresses possible routes for changing the rent, including an agreed variation or a statutory lease extension where available. Proposed reforms should not be presented as having already changed the buyer’s obligations.
The reporting point: explain the current exposure and available options before asking the buyer whether they wish to proceed. Acceptance by the present lender does not settle every question about value or future marketability.
2. Absolute restrictions against alterations and Duval
A buyer planning structural work may assume that obtaining the landlord’s written consent will resolve the leasehold position. An absolute prohibition requires closer examination, particularly where the landlord has obligations to enforce similar covenants for other leaseholders.
The October paragraph addresses Duval v 11-13 Randolph Crescent Ltd [2020] UKSC 18. Under the leases considered in that case, licensing work prohibited by an absolute covenant would breach the landlord’s obligations to other leaseholders.
The suggested wording distinguishes qualified and absolute alterations covenants. It also prompts examination of existing licences, the work actually undertaken and any remaining risks.
The reporting point: identify what this lease prohibits and explain why the landlord’s willingness to consent may not provide a complete answer.
3. Manorial rights recorded against the title
References to former copyhold land or rights reserved to a lord of the manor can appear remote from the buyer’s intended use. Their legal effect still needs investigation.
The October wording explains that manorial rights lost their automatic overriding status on 13 October 2013, but were not automatically extinguished. Title entries and registration history matter, and the absence of a separate unilateral notice is not necessarily conclusive.
The paragraph considers rights relating to minerals, sporting activities, markets and other matters. It avoids assuming that residential use makes a protected right ineffective or that the owner’s fresh consent will always be required before it can be exercised.
The reporting point: establish which rights affect the particular title, what protection exists and what further evidence or advice is needed before exchange.
4. Climate change index ratings in search reports
A climate search rating needs explanation in the context of the provider’s assessment. A favourable result does not guarantee that the property will remain unaffected by climate-related risks.
The October paragraph provides a structure for recording the search, its rating, the relevant time periods and scenarios, and material exclusions or limitations.
Optional sections address flooding, ground instability and coastal erosion, with prompts for insurance enquiries, surveying advice or other specialist investigation where appropriate. The wording also identifies potential implications for future use, ownership costs and marketability.
The reporting point: explain the legal implications of the findings and recommended follow-up without offering unsupported technical or scientific reassurance.
5. HMO licensing and mortgage conditions in England
A buyer acquiring an HMO needs to establish the licensing arrangements that will cover their ownership and proposed operation. The seller’s existing licence cannot simply be transferred to them.
The October wording prompts confirmation of the local authority’s position, applicable lender conditions and any deadline for supplying a licence.
It also explains why a lender’s post-completion deadline does not permit unlawful unlicensed operation in the meantime. Licensing conditions may require physical work, creating expenditure the buyer should investigate before committing to the purchase.
The reporting point: reconcile the licensing position, intended occupation and mortgage requirements. Identify unresolved conditions and costs before exchange rather than relying on the seller’s licence or the lender’s timetable.
6. Off-plan deposits released to fund development
The final paragraph concerns an off-plan purchase where the contract allows the buyer’s deposit to be released before completion and used to finance the development.
Its focus is on arrangements involving a substantial advance payment and limited effective protection for repayment. The wording must be adapted to the actual contract, release conditions, security and priority of the developer’s funder.
Describing a payment as a deposit, or initially holding it as stakeholder, does not establish that the money will remain protected until completion. Once released, it may be spent on the development.
The suggested warning explains the possibility of construction stopping, the developer becoming insolvent and the buyer losing the whole payment without receiving a completed property. It also distinguishes legal advice on the contractual arrangements from financial or investment advice.
The reporting point: make the release mechanism and possible loss clear before obtaining authority to exchange. Any security or repayment protection must be examined rather than assumed.
How should firms use the October update?
These are suggested reporting clauses for consideration and adaptation. Their inclusion in a monthly update does not mean that each topic represents a new legal rule introduced in October.
For each relevant paragraph, the firm should:
- Decide when the wording should be used.
- Check the underlying law, lender instructions and transaction documents.
- Complete the factual fields and remove inapplicable options.
- Explain outstanding enquiries and any specialist advice required.
- Record the client’s instructions where a decision is needed.
A reporting clause supports the advice on the file. It still needs the conveyancer’s investigation and judgement to explain what the issue means for this buyer and this property.
Keep your Report on Title precedent under review
Lexsure’s e-ROT Notification Service provides monthly suggested wording for firms to consider incorporating into their existing Report on Title process.
The service is available independently of the e-ROT Generator. Firms can review the suggestions, adapt relevant clauses and retain optional wording for particular transactions.
Does your Report on Title explain these risks?
Review Lexsure’s monthly suggested paragraphs and consider which additions belong in your firm’s main precedent or optional reporting library.
Explore Report on Title Notifications →Works with your existing reporting process. Your firm decides which wording to adopt and how to adapt it.
This article summarises Lexsure’s October 2026 suggested Report on Title wording for conveyancing practice in England and Wales. The HMO paragraph concerns England only. Each clause requires review against the applicable law, instructions and circumstances of the transaction.