Adverse possession (sometimes called “squatters’ rights”) is a legal process that allows someone to become the owner of land if they have occupied and used it as their own, without the owner’s permission, for a long period of time.
This area of law can be complicated. To make a successful claim, the person occupying the land must satisfy certain criteria. Since the Land Registration Act 2002 came into force it has become much harder to gain ownership of registered land through adverse possession. Claims involving leasehold land can often be more technically complex and difficult to establish.
Claims involving registered leasehold land
Someone who has occupied registered land without permission for at least 10 years may apply to the Land Registry to become the registered owner.
However, if the land owner objects, the application will only succeed if one of the following applies, the owner led the occupier to believe they were allowed to stay, so it would be unfair for the owner to remove them (known as estoppel); the occupier already has another legal right to the land, for example under a Will; or, and most commonly, the occupier reasonably but mistakenly believed adjoining land was theirs for at least 10 years, and the exact boundary has never been formally fixed.
Common leasehold scenarios
A third party occupies land that is leased to a tenant
This often happens where a neighbouring owner or occupier uses land that forms part of someone else’s lease. If the adverse possession claim succeeds the tenant could lose their rights to that part of the land. The occupier would become the registered leasehold owner of that area.
However, they would not automatically become the owner of the freehold. They would usually need to remain in occupation after the lease ends and meet further legal requirements.
A tenant uses part of their landlord’s property that is not included in their lease
This is a common issue in leasehold properties involving areas such as lofts, roof spaces and storage areas.Sometimes tenants use these areas believing they are included in their lease when they are not.
Recent tribunal decisions have confirmed that a tenant generally cannot claim adverse possession against their own landlord and if a tenant occupies space outside their lease, this is usually treated as an encroachment rather than adverse possession. This means the tenant may be able to seek formal inclusion of the area in their lease, but cannot simply claim ownership of it through adverse possession.
A tenant occupies neighbouring land that belongs to someone else
Where a tenant uses land outside their lease that belongs to a third party, the occupation is generally treated as being for the benefit of the landlord. In these circumstances the tenant cannot usually make an adverse possession claim themselves, rather the landlord would need to bring any adverse possession claim against the neighbouring owner based on the tenant’s occupation of the land.
Practical points for landlords and property managers
Landlords and managing agents would be well advised to regularly inspect properties and check that tenants are only using areas included in their lease and to take reasonable steps to prevent third parties from occupying land.
This would help to identify any signs of encroachment early and allow the landlord or manager to obtain legal advice promptly and potentially prevent third parties acquiring rights through adverse possession.
How Moore Barlow can help you
Adverse possession claims involving leasehold land can be particularly complex, with the rights of landlords, tenants and third parties all requiring careful consideration. Our experienced property disputes solicitors can assess the history of the land, leases and available evidence before advising on the strength of a potential claim or objection.
Whether you are seeking to establish an adverse possession claim, responding to an application or concerned about unauthorised use of your property, we can provide clear, strategic advice and represent your interests throughout the Land Registry process or any resulting dispute. Seeking advice early can help protect your position and avoid unnecessary time and cost.
