LAND REGISTRATION, ENGLAND AND WALES PART 1 General Citation, commencement and interpretation 1 1 This Order may be cited as the Land Registration Fee Order 2003 and shall come into force on the day that section 1 of the Act comes into force. 2 In this Order unless the context otherwise requires— “account holder” means a person or firm holding a credit account; “the Act” means the Land Registration Act 2002; “charge” includes a sub-charge; “credit account” means an account authorised by the registrar under article 15(1); “large area application” is as defined in article 6(1); “large scale application” is as defined in article 6(1); “premium” means the amount or value of any monetary consideration given by the lessee as part of the same transaction in which a lease is granted by way of fine, premium or otherwise, but, where a registered leasehold estate of substantially the same land is surrendered on the grant of a new lease, the premium for the new lease shall not include the value of the surrendered lease; “profit” means a profit a prendre in gross; “monetary consideration” means a consideration in money or money’s worth (other than a nominal consideration or a consideration consisting solely of a covenant to pay money owing under a mortgage); “the rules” means the Land Registration Rules 2003 and a rule referred to by number means the rule so numbered in the rules; “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; “Scale 1” means Scale 1 in Schedule 1; “Scale 2” means Scale 2 in Schedule 2; “scale fee” means a fee payable in accordance with a scale set out in Schedule 1 or 2 whether or not reduced in accordance with article 2(6); “scale fee application” means an application which attracts a scale fee, or which would attract such a fee but for the operation of article 6; “Schedule” means a Schedule to this Order; “share”, in relation to land, means an interest in that land under a trust of land; “surrender” includes a surrender not made by deed; “voluntary application” means an application for first registration (other than for the registration of title to a rentcharge, a franchise or a profit) which is not made wholly or in part pursuant to section 4 of the Act (when title must be registered). 3 Expressions used in this Order have, unless the contrary intention appears, the meaning which they bear in the rules. PART 2 Scale fees Applications for first registration and applications for registration of a lease by an original lessee 2 1 The fee for an application for first registration is payable under Scale 1 on the value of the estate in land comprised in the application assessed under article 7 unless the application is— a for the registration of title to a lease by the original lessee or his personal representative, where paragraph (2) applies; b for the first registration of a rentcharge, where paragraph (4) applies; c for the first registration of a franchise or a profit, where paragraph (5) applies; d a voluntary application, where paragraph (6) applies; or e a large scale application or a large area application, where article 6 applies. 2 The fee for an application for the registration of title to a lease (whether or not it is a registrable disposition) by the original lessee or his personal representative is payable under Scale 1— a on an amount equal to the sum of the premium and the rent; or b where i there is no premium; and ii either there is no rent or the rent cannot be quantified at the time the application is made, on the value of the lease assessed under article 7 subject to a minimum fee of £40, unless either of the circumstances in paragraph (3) applies. 3 Paragraph (2) shall not apply if the application is— a a voluntary application, where paragraph (6) applies; or b a large scale application or a large area application, where article 6 applies. 4 The fee for an application for the first registration of a rentcharge is £40. 5 The fee for an application for the first registration of a franchise or a profit is payable under Scale 1 on the value of the franchise or the profit assessed under article 7. 6 The fee for a voluntary application is the fee which would otherwise be payable under paragraphs (1) and (2) for applications to which those paragraphs apply reduced by 25 per cent and, where the reduced fee would be a figure which includes pence, the fee must be adjusted to the nearest £10. Transfers of registered estates for monetary consideration, etc. 3 1 Subject to paragraphs (2), (3) and (4), the fee for an application for the registration of— a a transfer of a registered estate for monetary consideration; b a transfer for the purpose of giving effect to a disposition for monetary consideration of a share in a registered estate; c a surrender of a registered leasehold estate for monetary consideration, other than a surrender to which paragraph (3) of Schedule 4 applies, is payable under Scale 1 on the amount or value of the consideration. 2 Paragraph (1) shall not apply if the application is— a a large scale application, where article 6 applies; or b for the registration of a transfer of a matrimonial home made pursuant to an order of the court, where article 4(1)(h) applies. 3 Where a sale and sub-sale of a registered estate are made by separate deeds of transfer, a separate fee is payable for each deed of transfer. 4 Where a single deed of transfer gives effect to a sale and a sub-sale of the same registered estate a single fee is assessed upon the greater of the monetary consideration given by the purchaser and the monetary consideration given by the sub-purchaser. 5 The fee for an application to cancel an entry in the register of notice of an unregistered lease which has determined is payable under Scale 1 on the value of the lease immediately before its determination. Transfers otherwise than for monetary consideration, etc. 4 1 Unless the application is a large scale application (where article 6 applies), the fee for an application for the registration of— a a transfer of a registered estate otherwise than for monetary consideration (unless paragraph (2) applies); b a surrender of a registered leasehold estate otherwise than for monetary consideration; c a transmission of a registered estate on death or bankruptcy; d an assent of a registered estate (including a vesting assent); e an appropriation of a registered estate; f a vesting order or declaration to which section 27(5) of the Act applies; g an alteration of the register (unless paragraph (3) applies); or h a transfer of a matrimonial home (being a registered estate) made pursuant to an order of the Court, is payable under Scale 2 on the value of the registered estate which is the subject of the application, assessed under article 7, but after deducting from it the amount secured on the registered estate by any charge subject to which the registration takes effect. 2 Where a transfer of a registered estate otherwise than for monetary consideration is for the purpose of giving effect to the disposition of a share in a registered estate the fee for an application for its registration is payable under Scale 2 on the value of that share. 3 In any application for alteration of the register— a if it appears to the registrar that the fee is excessive, he may reduce it; and b if it appears to him unreasonable that the applicant should pay a fee, he may waive it. Charges of registered estates 5 1 The fee for an application for the registration of a charge is payable under Scale 2 on the amount of the charge assessed under article 8 unless it is an application to which paragraphs (2), (3) or (4) apply. 2 No fee is payable for an application to register a charge lodged with or before the completion of a scale fee application (`the primary application') that will result in the chargor being registered as proprietor of the registered land included in the charge unless— a the charge includes a registered estate which is not included in the primary application, where paragraph (4) applies; or b the primary application is a voluntary application, in which case this paragraph shall apply only if the application to register the charge accompanies the primary application. 3 No fee is to be paid for an application to register a charge made by a predecessor in title of the applicant that is lodged with or before completion of an application for first registration of the estate included in the charge. 4 Where a charge also includes a registered estate which is not included in the primary application any fee payable under Scale 2 is to be assessed on an amount calculated as follows: Value of the additional property Value of all the property included in the charge × Amount secured by the charge 5 The fee for an application for the registration of— a the transfer of a registered charge for monetary consideration; or b a transfer for the purpose of giving effect to the disposition for monetary consideration of a share in a registered charge, is payable under Scale 2 on the amount or value of the consideration. 6 The fee for an application for the registration of the transfer of a registered charge otherwise than for monetary consideration is payable under Scale 2 on— a the amount secured by the registered charge at the time of the transfer; or b where the transfer relates to more than one charge, the aggregate of the amounts secured by the registered charges at the time of the transfer. 7 The fee for an application for the registration of a transfer for the purpose of giving effect to a disposition otherwise than for monetary consideration of a share in a registered charge is payable under Scale 2 on— a the proportionate part of the amount secured by the registered charge at the time of the transfer; or b where the transfer relates to more than one charge, the proportionate part of the aggregate of the amounts secured by the registered charges at the time of the transfer. 8 This article takes effect subject to article 6 (large scale applications). Large scale applications, etc. 6 1 In this article— a “large area application” means an application for first registration which relates to land having a total area exceeding 100 hectares; b “large scale application” means a scale fee application which relates to 20 or more land units, other than— i a large area application; or ii a low value application, c “low value application” means a scale fee application, other than an application for first registration, where the value of the land or the amount of the charge to which it relates (as the case may be) does not exceed £30,000; d “land unit” means— i the land registered under a single title number; or ii on a first registration application, a separate area of land not adjoining any other unregistered land affected by the same application. 2 Unless the application is one in respect of a charge lodged with another application and falls within article 5(2), the fee for a large scale application is the greater of— a the scale fee; and b a fee calculated on the following basis— i where the application relates to not more than 500 land units, £10 for each land unit; or ii where the application relates to more than 500 land units, £5,000 plus £5 for each land unit in excess of 500, up to a maximum of £40,000. 3 The fee for a large area application is the Scale 1 fee and if the registrar considers that the cost of the work involved in dealing with the application would substantially exceed the scale fee otherwise payable, he may direct that an additional fee be paid but the fee is not to exceed the cost of the work involved. 4 If a large area application or a large scale application is a voluntary application, the fee payable under this article is reduced in accordance with article 2(6). PART 3 Valuation Valuation (first registration and registered estates) 7 1 For the purposes of this Order, the value of the estate in land, franchise, profit or share is the maximum amount for which, in the registrar’s opinion, it could be sold in the open market free from any charge— a in the case of a surrender, at the date immediately before the surrender; b in any other case, at the date of the application. 2 As evidence of the amount referred to in paragraph (1), the registrar may require a written statement signed by the applicant or his conveyancer or by any other person who, in the registrar’s opinion, is competent to make the statement. 3 Where an application for first registration is made on— a the purchase of a leasehold estate by the reversioner; b the purchase of a reversion by the leaseholder; or c any other like occasion, and an unregistered interest is determined, the value of the land is the combined value of the reversionary and determined interests assessed in accordance with paragraphs (1) and (2). Valuation (charges) 8 1 On an application for registration of a charge, the amount of the charge is— a where the charge secures a fixed amount, that amount; b where the charge secures further advances and the maximum amount that can be advanced or owed at any one time is limited, that amount; c where the charge secures further advances and the total amount that can be advanced or owed at any one time is not limited, the value of the property charged; d where the charge is by way of additional or substituted security or by way of guarantee, an amount equal to the lesser of— i the amount secured or guaranteed; and ii the value of the property charged. e where the charge secures an obligation or liability which is contingent upon the happening of a future event (“the obligation”), and is not a charge to which sub-paragraph (d) applies, an amount equal to— i the maximum amount or value of the obligation; or ii if that maximum amount is greater than the value of the property charged, or is not limited by the charge, or cannot be calculated at the time of the application, the value of the property charged. 2 Where a charge of a kind referred to in paragraph (1)(a) or (1)(b) is secured on unregistered land or other property as well as on a registered estate or registered charge, the fee is payable on an amount calculated as follows— Value of the registered estate or registered charge Value of all the property charged × Amount of the charge 3 Where one deed contains two or more charges made by the same chargor to secure the same debt, the deed is to be treated as a single charge, and the fee for registration of the charge is to be paid on the lesser of— a the amount of the whole debt; and b an amount equal to the value of the property charged. 4 Where one deed contains two or more charges to secure the same debt not made by the same chargor, the deed is to be treated as a separate single charge by each of the chargors and a separate fee is to be paid for registration of the charge by each chargor on the lesser of— a the amount of the whole debt; and b an amount equal to the value of the property charged by that chargor. 5 In this article “value of the property charged” means the value of the registered estate or the amount of the registered charge or charges affected by the application to register the charge, less the amount secured by any prior registered charges. PART 4 Fixed Fees and Exemptions Fixed fees 9 1 Subject to paragraphs (2), (3) and (4), the fees for the applications and services specified in Schedule 3 shall be those set out in that Schedule. 2 The fee for an application under rule 140 shall be the aggregate of the fees payable for the services provided, save that the maximum fee for any one application shall be £200. 3 The registrar may, if he thinks fit, waive any fee or part of a fee or any category of fee payable under this article. 4 If— a having regard to the extent of the land to which an application for a search of the index map relates; or b in an application for the determination of the exact line of a boundary under rule 118, the registrar considers that the cost of the work involved in dealing with that application would substantially exceed any fee otherwise payable under this Order, such additional fee shall be payable as the registrar shall direct as appropriate to cover the excess cost of the work involved. 5 Notification of the additional fee under paragraph (4) shall be given to the applicant and, if he then elects to withdraw his application, no fee shall be payable. Exemptions 10 No fee is payable in respect of any of the applications and services specified in Schedule 4. PART 5 General and Administrative Provisions Refund of fees 11 1 Where an amount exceeding the fee payable under this Order has been paid, there shall be refunded any excess remaining after the deduction, if the registrar so directs, of an amount not exceeding £10 in respect of the cost of repayment. 2 Where the person or firm lodging the application is an account holder, any amount to be refunded under paragraph (1) may at the discretion of the registrar be repaid to the account holder by crediting the amount to the account holder’s credit account. 3 If any application is cancelled or withdrawn no part of the fee shall be refunded unless— a the registrar so directs; or b article 9(5) applies. Cost of surveys, advertisements and special enquiries 12 Unless the registrar directs otherwise, the applicant is to meet the costs of any survey, advertisement or other special enquiry that the registrar requires to be made or published in dealing with an application. Applications not otherwise referred to 13 Upon an application for which no other fee is payable under this Order and which is not exempt from payment, there shall be paid such fee (if any) not exceeding a fee in accordance with Scale 1 on the value of the registered estate or on the amount of the charge as the registrar shall direct having regard to the work involved. Method of payment 14 1 Fees payable under this Order shall be collected in money. 2 Except where the registrar otherwise permits, every fee shall be paid by means of a cheque or postal order crossed and made payable to the Land Registry. 3 Where there is an agreement with the applicant, a fee may be paid by direct debit to such bank account of the Land Registry as the registrar may from time to time direct. 4 Where the amount of the fee payable on an application is immediately quantifiable, the fee shall be payable on delivery of the application. 5 Where the amount of the fee payable on an application is not immediately quantifiable, the applicant shall pay the sum of £40 towards the fee when the application is made and shall lodge at the same time an undertaking to pay on demand the balance of the fee due, if any. 6 Where an outline application is made, the fee payable shall be the fee payable under paragraph (9) of Part 1 of Schedule 3 in addition to the fee otherwise payable under this Order. Credit accounts 15 1 Any person or firm may, if authorised by the registrar, use a credit account in accordance with this article for the payment of fees for applications and services of such kind as the registrar shall from time to time direct. 2 To enable the registrar to consider whether or not a person or firm applying to use a credit account may be so authorised, that person or firm shall supply the registrar with such information and evidence as the registrar may require to satisfy him of the person or firm’s fitness to hold a credit account and the ability of the person or firm to pay any amounts which may become due from time to time under a credit account. 3 To enable the registrar to consider from time to time whether or not an account holder may continue to be authorised to use a credit account, the account holder shall supply the registrar, when requested to do so, with such information and evidence as the registrar may require to satisfy him of the account holder’s continuing fitness to hold a credit account and the continuing ability of the account holder to pay any amounts which may become due from time to time under the account holder’s credit account. 4 Where an account holder makes an application where credit facilities are available to him, he may make a request, in such manner as the registrar directs, for the appropriate fee to be debited to the account holder’s credit account, but the registrar shall not be required to accept such a request where the amount due on the account exceeds the credit limit applicable to the credit account, or would exceed it if the request were to be accepted. 5 Where an account holder makes an application where credit facilities are available to him, and the application is accompanied neither by a fee nor a request for the fee to be debited to his account, the registrar may debit the fee to his account. 6 A statement of account shall be sent by the registrar to each account holder at the end of each calendar month or such other interval as the registrar shall direct. 7 The account holder must pay any sums due on his credit account before the date and in the manner specified by the registrar. 8 The registrar may at any time and without giving reasons terminate or suspend any or all authorisations given under paragraph (1). 9 In this article “credit limit” in relation to a credit account authorised for use under paragraph (1) means the maximum amount (if any) which is to be due on the account at any time, as notified by the registrar to the account holder from time to time, by means of such communication as the registrar considers appropriate. Signed by the authority of the Lord Chancellor David Lammy Parliamentary Under Secretary of State Department for Constitutional Affairs Dated 17th July 2003 We concur Jim Murphy Joan Ryan Two of the Lords Commissioners of Her Majesty’s Treasury Dated 11th August 2003