Land - Mortgage & Adverse Possession (4)

3. In 1976 Richard granted James a 99-year lease on a property consisting of ahouse and a large garden (unregistered land). At the back of the garden was a big shed which James was hoping to convert into a studio when he had the time and money to do so. In 1987 William, the next-door neighbour, saw that the shed was unused and in bad repair; so he moved in, repaired it, put in electricity and has used it as a workshop and storeroom ever since. James never had the money to convert it into a studio and in 2000 he surrendered his term to Richard. Richard now wants to recover possession of the shed.
Advise William. What if the land had been registered?

Unregistered land
- Apply St Marylebone Property v Fairweather: Leasehold title rights is extinguished by adverse possession; but leasehold title to freehold is maintained – leaseholder and freeholder can sign a new lease to shut out the squatter

Registered land pre-1925
- Leaseholder will be holding the land on trust for squatter

Registered post 1925
- Valid surrender of trust to freeholder subject to overriding interest s70(1)(f)

Registered land post 2002
- Schedule 6
- Squatter has the right to apply for adverse possession: notice will be sent to leaseholder and freeholder to take action against adverse possession in 2 years- If no action has been taken, squatter can reapply and replace leaseholder and squatter becomes the new leaseholder