HM Land Registry: Registration Services fees
Leases
Leases
Registration
The fee for an application by the original lessee or his or her personal representative for the registration of title to a lease, or for the registration of the grant of a lease, is assessed:
- on an amount equal to the sum of the premium and the rent
- if there is no premium, on the amount of the rent, or
- if there is no premium and either there is no rent or the rent cannot be quantified, on the value of the lease, assessed under article 7 of the Land Registration Fee Order 2021, subject to a minimum fee of £45
‘Rent’ means the largest amount of annual rent the lease reserves within the first five years of its term that can be quantified at the time an application to register the lease is made; or if the term of the lease is less than one year, the amount of the rent for the term. Please note: where the rent is a peppercorn rent or other rent having no money value, the rent is treated as if it were nothing.
For this type of transaction, use Scale 1 fees.
Examples
-
Fiona McKay buys a new flat on a 99 year lease for £150,000. The annual rent is £100 rising to £125 in year 5 and £150 in year 10. The fee would be assessed on £150,000 (premium) + £125 (highest rent in first 5 years) = £150,125.
-
John Brown buys a new flat on a 125 year lease for £200,000. The rent is 6.25% of the total service costs. In this case, the fee would be assessed on the premium of £200,000 alone, because the rent cannot be quantified.
-
Cornshire Self Storage Limited acquires a new commercial leasehold for 10 years. There is no premium, but the rent is £100,000 in year 1, rising to £150,000 in year 5 and £200,000 in year 8. In this case, the fee is assessed on £150,000 (the highest rent in the first 5 years).
Surrender of a registered lease for monetary consideration
The fee is based on the amount or value of the consideration paid or given by the landlord for the surrender.
No fee is payable to register the surrender of a registered lease where a scale fee is paid for the registration of a new lease of substantially the same property and the registered proprietor remains the same.
For this type of transaction, use scale 1 fees.
Surrender of a registered lease other than for monetary consideration
This includes where the tenant has paid a premium to the landlord in relation to the surrender or for the release of the tenant’s covenants. The fee is based on the value of the lease prior to the surrender.
No fee is payable to register the surrender of a registered lease where a scale fee is paid for the registration of a new lease of substantially the same property and the registered proprietor remains the same.
For this type of transaction, use Scale 2 fees.
Examples
-
Sara surrenders the lease of a shop to the landlord, it has one year left to run and is worth £8,000. No money changes hands. The fee is assessed on the value of the lease on the date of surrender (£8,000) and the fee is payable under Scale 2.
-
Sara extends the lease on her flat from 99 years to 999 years. In law, this is treated as the surrender of the existing lease and the grant of a new lease. The fee for the new lease is payable as in the leases section. However this time, there is no fee for the surrender of the existing lease because it is made in consideration of the grant of a new one.
Other applications relating to leases
You will pay a fixed fee of £40 (or £20 if submitted using the portal or Business Gateway) per registered title if your application is for:
- determination of a registered lease by effluxion of time, merger or forfeiture
- cancellation of entry of notice of an unregistered lease
- noting of a lease in the landlord’s title
No fee is payable if the application accompanies another application where a scale fee is payable.
No fee is payable if an application for a notice of lease in the landlord’s title accompanies an application to register the easements in the lease, where a fee is paid under Article 12 (£40 for however many titles affected, or £20 if submitted electronically).
