Land Registry Fees Are Changing for the First Time in 12 Years!

Why Are Land Registry Charges Changing?

HM Land Registry claims it is increasing its fees in order to progress plans for increased operational capacity and accelerating the digitalisation and automation of services. HMLR claim this will deliver customers what they need – more consistency and speedier service delivery.

 

Which HM Land Registry Charges Will Be Affected?

These new changes will affect applications for first registration and for the registration of transfers, leases and mortgages of property (scales 1 and 2). Therefore, they will be relevant to both developers and homeowners.

 

How Much Are Fees Increasing?

In most instances, applications that are submitted by post will see a 21% increase. For example, scale 1 fees for applying by post will change as follows:

 

Value                                   Old Fee                 New Fee

£0 to £80,000                        £40                            £45

£80,001 to £100,000            £80                           £95

£100,001 to £200,000          £190                         £230

£200,001 to £500,000          £270                         £330

£500,001 to £1,000,000       £540                        £655

£1,000,001 and over             £910                         £1,105

 

And scale 2, as follows:

Value                                   Old Fee                 New Fee

£0 to £100,000                      £40                           £45

£100,001 to £200,000          £60                          £70

£200,001 to £500,000          £80                         £100

£500,001 to £1,000,000       £120                        £145

£1,000,001 and over             £250                        £305

 

For applications made electronically, the increase will be lower at around 11%.

 

Scale 1 Fees for Applying Using the Portal or Business Gateway

Registration of all leases and transfers or surrenders which affect part of a registered title:

Value                                   Old Fee                 New Fee

£0 to £80,000                        £40                           £45

£80,001 to £100,000            £80                          £95

£100,001 to £200,000          £190                        £230

£200,001 to £500,000          £270                       £330

£500,001 to £1,000,000       £540                       £655

£1,000,001 and over             £910                        £1,105

 

Transfers or surrenders which affect the whole of a registered title:

Value                                   Old Fee                 New Fee

£0 to £80,000                        £20                           £20

£80,001 to £100,000            £40                          £40

£100,001 to £200,000          £95                          £100

£200,001 to £500,000          £135                        £150

£500,001 to £1,000,000       £270                       £295

£1,000,001 and over             £455                       £500

Voluntary first registration (reduced fee)

 

Value                                   Old Fee                 New Fee

£0 to £80,000                        £30                           £30

£80,001 to £100,000            £60                           £70

£100,001 to £200,000          £140                         £170

£200,001 to £500,000          £200                       £250

£500,001 to £1,000,000       £400                      £495

£1,000,001 and over             £680                       £830

 

Scale 2 Fees for Applying Using the Portal or Business Gateway

Transfers of whole, charges of whole, transfers of charges and other applications of whole of registered titles:

Value                                   Old Fee                 New Fee

£0 to £100,000                      £20                           £20

£100,001 to £200,000          £30                          £30

£200,001 to £500,000          £40                         £45

£500,001 to £1,000,000       £60                         £65

£1,000,001 and over             £125                        £140

 

Registration of transfers of part, and all other scale 2 applications that do not affect the whole of a registered title:

Value                                   Old Fee                 New Fee

£0 to £100,000                      £40                            £45

£100,001 to £200,000          £60                           £70

£200,001 to £500,000          £80                          £100

£500,001 to £1,000,000       £120                        £145

£1,000,001 and over             £250                        £305

 

Will There Be Any Other Changes?

Aside from these fee changes, there are a few minor other amends to expect, including:

• There will be a change in fees for obtaining historical copies of the register. These will align with the fees for official copies of the register. These historical copies will cost £3 when lodged electronically and £7 by post.
• There will be a new exemption for requests to note disclaimers of properties made by liquidators, the Treasury Solicitor, and trustees in bankruptcy.
• There will be a specific reference to the fee for applications for an entry relating to Right to Manage companies under the Commonhold and Leasehold Reform Act 2002 to make it clear that there is no change in the fee. This costs £20 when lodged electronically and £40 by post.

 

So, What Does This Mean For You?

Well, HM Land Registry are promising a better and speedier application process, which in theory, no one can complain about. However, this will mean an increase in costs, significantly so if you are building a large, multi-property development or have a sizeable investment portfolio that you keep fairly fluid. So, it will be important to account for these small additional costs, as every penny can mount up.

If you have plans to or are considering investing in residential property and would like to learn more about your funding options and/or these changes in HMLR fees, please get in touch with our friendly and experienced team.