What Does The Recent Increase In Land Registration Fees Mean For Me?

This article will discuss what the Land Registry is and what information they hold, what Land Registration Fees are, when land registration fees are payable, and what the fee increase means in practical terms.

What is the Land Registry?

Following the Land Registration Act 1925 compulsory registration of property and land was gradually phased into counties across the UK, and by 1990 this was in effect across the whole country. Still, if residential property was exchanging hands without a financial transaction (eg. when property was left to someone in a will), registration was not compulsory. The Land Registration Act 2002 addressed this.

HM Land Registry is the department of the UK Government which is responsible for recording the property and land registration information for England and Wales. They hold the Title Register (or Title Deeds), and Title Plan. Together these provide proof of ownership.

The Title Register includes the owners names and addresses, the price paid, the date purchased, whether the property or land is freehold or leasehold, the Class of Title, length of lease (if leasehold), details of restrictive and personal covenants, as well as easements such as rights of way, mortgages, charges, restrictions and notices.

The Title Plan is a drawn plan that shows the land or property outlined in red, along with the adjoining land and properties in order to better identify it.

What are Land Registration Fees?

Land registration fees are payable to the Land Registry when land or property is transferred, including when it is leased or the title is upgraded (eg. from possessory freehold to absolute freehold). They can be paid using the Land Registry Portal, the Business Gateway, by post or in person and the fees will differ as a result. Fees are calculated based on the land or property price.

It is usual to enlist a property solicitor, or licensed conveyancer, to take care of the legal aspects of buying land or a property. This process is called conveyancing. As part of this service the Land Registration fees will usually be calculated and the application to the Land Registry will be made.

How Much are the Land Registration Fees?

Because the land registration fees are calculated based on the land or property price, it is not possible to give a price for the Land Registration fee. In addition the fee will differ depending on the method that is used to pay the fee.

What Does The Recent Increase In Land Registration Fees Mean For Me?

At 00.01 am on Monday 31 January 2022 land registration fees for all transfers, leases and other applications became chargeable under the new 2021 Fee Order.

There was an increase of 11% on applications submitted electronically via the online portal and an increase of 21% on applications submitted by post or in person.

All applications submitted after 00.01 am on Monday 31 January 2022 are subject to the new fees, even if an application was started before but submitted after this time, or cancelled (or rejected) and then resubmitted after this time.

The Land Registration fees had not been increased since 2009, and were implemented to enable an increase in efficiency and digitisation.

Because the Land Registry is used for proof of ownership it is very important that the information that is filed is accurate, as issues such as boundary disputes could arise as a result. Similarly the calculation of fees payable is not straightforward. It is prudent to enlist the services of a solicitor or conveyancer.

Notes:

You can find out more about how Land Registration fees are calculated here: https://www.gov.uk/guidance/hm-land-registry-registration-services-fees

Payment of Land Registry fees can be made here: https://eservices.landregistry.gov.uk/

If you are in need of more information on the land registry and the associated fees or are looking to transfer ownership of a property, then call us on Bingley 01274 723858, Ilkley 01943 601173 or Bradford 01274 735511.