How much are land registry fees for selling?
For the first time since 2009, an increase in land registration costs will take effect for both Scale 1 and Scale 2 rates. Applications for initial registration as well as applications for registration of transfers, leases, and mortgages submitted on or after 31st January 2022 will be subject to the new 2021 Fees Order pricing structure. Read on to learn more about how much land registry fees are for selling.
What is the Land Registry?
The Land Registry serves as England and Wales' centralised database for all information pertaining to property and land ownership. When changes are made to the title papers, a fee known as a "Registration Fee" is assessed by the Land Registry.
The fee to look up the owner of a property in England and Wales, regardless of whether the property or land is held in leasehold or freehold, is currently set at £3. The one and only exemption is property or land that has not been registered. Since the Land Registry came online in 1996, the number of properties that are not registered has been steadily decreasing.
What kind of fees are involved in selling?
The Land Registry operates two fee scales: Scale One and Scale Two. The fees associated with Scale One apply to first registrations, as well as sale and purchase registrations, while Scale Two includes the registration of a charge and the transfer of ownership for no monetary value. It's easy to determine whether or not the costs associated with Scale One or Scale Two apply. For example, if all of the names that appear on the Land Registry title are going to be changed, then you need to use Scale One. If you're just altering a few of the names that appear on the formal title, then you are dealing with Scale Two.
Cost of the land registry
It is imperative that you register your new title with the land registry as soon as possible. Land registry costs can be anywhere from £20 to £910 for each transaction. The amount that must be paid is based not only on the purchase price but also on whether or not the property that you are purchasing has previously been registered. Determine how much you are required to pay by going to http://landregistry.data.gov.uk/fees-calculator.html. Click 'chose application type', then pick 'transfer of whole' for value. After that, click 'select', and lastly, enter the purchase amount in the box that is labelled 'transaction value.' If the title is already registered, select the electronic fee; if the title is not yet registered, select the standard charge. The amount of the Land Registry fee that you are responsible for paying will be displayed here. Note: a property may be a first registration if it's been several years since the last owner sold it and it has remained in the same family. Repeat the process outlined above, but this time, select the normal charge instead of the first-time buyer cost if you are aware that the property you are acquiring is the first registration. At the beginning of a transaction, it is possible that it will not be evident if the property has been registered or not. For instance, the land registry fee for a registered home that costs £300,000 will be £135. The charge is increased to £270 if the property has never been registered.
When are the fees that you owe to the land registry due?
Fee payment for land registration is required at the time an application is submitted to the Land Registry. Your solicitor will request payment from you and then submit the application to the Land Registry using an online gateway. The Land Registry will then collect the money from the solicitor through the use of Direct Debit.
Land registry scale one fees for an electronic payment:
• 0 - £80,000: £20
• £80,001 - £100,000: £40
• £100,001 - £200,000 is £100
• £200,001 - £500,000 is £150
• £500,001 - £1,000,000 is £295
• £1,000,001 and over £500 is £1,105
Land registry scale two fees for an electronic payment:
• 0 - £80,000 is £20
• £80,001 - £100,000 is also £20
• £100,001 - £200,000 is £30
• £200,001 - £500,000 is £45
• £500,001 - £1,000,000 is £65
• £1,000,001 and more is £140
Contact NFC Homes
NFC Homes is a residential and commercial property development, housebuilding and construction group based in London but working nationwide. Over the past 15 years, we have successfully delivered more than 1,500 new homes and commercial developments. If you require advice, just get in touch with our expert and friendly team at NFC Homes for more advice on finding out how much land is worth, selling land, gaining planning permission on your land and selling land with planning permission today.