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HM Land Registry: Registration Services fees

HM Land Registry: Registration Services fees

Transactions under Scale 2

Transactions under Scale 2

Transfers or assents of registered estates not for monetary consideration

Assess the fee on the value of the property, minus the amount outstanding on any continuing charge and any new charge (see note 1). This also applies where the transfer gives effect to the appointment of new or additional trustees.

If a sole surviving tenant in common appoints new trustees so they can sell the property and both the appointment of new trustees and the onward transfer are lodged together in the same application, then fees are only payable on the second transfer. In this situation there is no fee payable for the first transfer or deed of appointment.

For this type of transaction, use Scale 2 fees.

Examples: properties with no mortgage

  1. John Smith transfers a property by gift to Sharon Jones, it is worth £200,000. The fee is assessed on the full £200,000 value and payable under Scale 2.

  2. John Smith transfers a property by gift to himself and Sharon Jones in equal shares. It is worth £200,000. The fee is assessed on half the value of the property (£100,000), and payable under Scale 2.

  3. Following the death of John Smith, Sharon Jones takes out probate and is appointed as the executor of his estate. She transfers the property, which is worth £200,000, to the beneficiary under John’s will by an assent. The fee is assessed on the full property value, £200,000, and is payable under Scale 2.

  4. John Smith, Joseph Evans and Sharon Jones are trustees of a trust owning a property worth £200,000. They appoint Lucy Brown as a new trustee either by deed or by HM Land Registry transfer form. The fee is assessed under Scale 2 on the full value of the property.

  5. John Smith, Joseph Evans and Sharon Jones were trustees of a trust owning a property worth £200,000. By a series of appointments and retirements of trustees that have not been registered, the new trustees are Lucy Brown and Rajwinder Kaur, who appoint George Murphy as an additional trustee. The three now apply to register all the changes. The fee is payable under Scale 2 on the last appointment of George Murphy only, assessed on the full £200,000 property value.

  6. John Smith and Sharon Jones own a property worth £200,000 which is held as tenants in common. Following the death of John Smith, Sharon Jones appoints Joseph Evans and Lucy Brown as new trustees to act with her by HM Land Registry transfer form or deed of appointment. The fee is assessed under Scale 2 on the full value of the property (£200,000).  However if they immediately sell the property to Fiona McKay and both transfers are lodged together, then fees are only payable on the second transfer.

Examples: properties being transferred subject to a mortgage

  1. John Smith transfers a property as a gift to Sharon Jones. The property is worth £200,000 and is subject to a mortgage to the Cornshire Building Society, where £100,000 remains outstanding and is not repaid on completion of the transfer. To calculate the fee for the transfer, subtract the outstanding mortgage amount (£100,000) from the full value of the property (£200,000). The fee is assessed on the result: £100,000, and payable under Scale 2.

  2. John Smith transfers a property as a gift to himself and Sharon Jones in equal shares. The property is worth £200,000 and is subject to a mortgage to the Cornshire Building Society where £100,000 remains outstanding and is not repaid on completion of the transfer. First, determine the value of the share, by subtracting the amount outstanding on the mortgage (£100,000) from the full value of the property, £200,000. Then divide the result (£100,000) in half to reflect the equal shares - £50,000. The fee is assessed on this figure, £50,000, and is payable under Scale 2.

  3. John Smith transfers a property as a gift to himself and Sharon Jones in equal shares. The property is worth £200,000 and is subject to a mortgage to the Cornshire Building Society where £100,000 remains to be paid. The existing mortgage is repaid and a new mortgage for £120,000 taken out in favour of Newcharge Bank. Calculate the value of the share by deducting the amount outstanding on the new mortgage, £120,000, from the full value of the property (£200,000). Then halve the result, £80,000, to reflect the transfer from John to John and Sharon - £40,000. The fee is assessed on this figure, £40,000, and is payable under Scale 2.

  4. John Smith, Joseph Evans and Sharon Jones hold a property valued at £200,000 in unequal shares. John transfers his 20% share as a gift to Joseph and Sharon, who take out a new mortgage of £40,000. Calculate the value of the share being transferred by deducting the amount outstanding on the new mortgage, £40,000, from the full value of the property, £200,000. Then multiply the result, £160,000, by 20% (which was John’s share), leaving £32,000. The fee is therefore assessed on £32,000 and is payable under Scale 2.

  5. John Smith and Sharon Jones own a property valued at £300,000 in equal shares. Sharon transfers her 50% share to John who takes out a mortgage of £170,000. John and Sharon had two mortgages on the property, the first will be discharged on completion of the transfer, the second will remain on the register post completion, postponed in favour of the new mortgage which John has arranged. The amount outstanding on the charge that is remaining is £40,000. The total amount outstanding will therefore be £210,000. Calculate the value of the share being transferred by deducting the total amount outstanding on the new and continuing charges, £210,000, from the full value of the property, £300,000. Then multiply the result, £90,000, by 50% (which is Sharon’s share), leaving £45,000. The fee is therefore assessed on £45,000 and is payable under Scale 2.

Note 1

The reference to ‘amount outstanding’ is the amount outstanding on:

  • any existing registered or noted charges, provided they have not been discharged on completion of the transfer; and
  • any new charges, provided the application to register the charges is lodged along with the application to register the transfer. The registration of the charges and the transfer must be completed at the same time.

Transfers of registered charges

Fee payable on the consideration, or, where the transfer is not for value, on the amount secured by the charge at the time of the transfer. Where a transfer not for value gives effect to the transfer of a share in a registered charge the fee is payable on the value of that share.

For this type of transaction, use Scale 2 fees.

Charges of registered estates

Read the charges section.

Other applications affecting registered estates

The fee for the registration of the following is payable on the value of the estate less the amount of any continuing registered charge (where this is transfer of a share, the fee is payable on the value of that share):

  • appropriations
  • assents of registered estates (not if first registration)
  • transfers of matrimonial or civil partnership homes as a result of court orders (under the Matrimonial Causes Act 1973 or the Civil Partnership Act 2004), payable on the value of the property even if the court orders one party to pay a consideration
  • transfers by operation of law on death or bankruptcy
  • vesting orders or declarations (under section 27(5) of the Land Registration Act 2002)

For this type of transaction, use Scale 2 fees.

Examples

  1. Jacob Marley dies owning a property worth £500,000 with no mortgage. His executor Ebenezer Scrooge takes out probate and then assents the property to the beneficiary Robert Cratchitt. The fee is assessed on the value of the property and payable under Scale 2.
  2. John and Mary Smith own a property worth £250,000 subject to a mortgage to the Cornshire Building Society on which £100,000 is outstanding. They are divorcing. The Court orders John and Mary to transfer the property to Mary, and for Mary to pay John £50,000. The fee is assessed on half the value of the property minus the value of the mortgage (£75,000, that is £250,000 value minus £100,000 mortgage, and then divided by 2) and payable under Scale 2. The money paid is disregarded for fee purposes.

Surrenders of leases not for monetary consideration

Read the leases section.

Large scale application

Where the deed affects 20 registered titles or more, refer to our guide ‘Large Scale Applications (Calculation of Fees)’.

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