Fee Order 2012 - Land Registry

Land RegistryFee Order 2012Questions and answers1 What does the Fee Order 2012 entail?Under the new Fee Order we are reducing our fees by an average of 10per cent by lowering scale and fixed fees for applications relating tonearly every statutory service.2 When will this happen?The new Fee Order comes into effect for application received on andafter 22 October 2012.3 What do I have to do?For our business customers, we encourage you to familiariseyourselves with the new fees and make any necessary changes to yourprocesses and systems to ensure you pay the correct fee with yourapplications. This applies to conveyancers, case management systemsuppliers and other business users who submit applications relating toour statutory services.Members of the public who use our service will also need to be awareof the changes in fees for when they submit applications themselves.4 Why is Land Registry reducing fees?Our Accelerated Transformation Programme, adopted in the wakeof the property market slump of 2008, aimed to ensure we becamethe smaller, leaner, flexible, more customer-focused and sustainableorganisation we needed to be to deliver our objectives in a changingmarket. The resulting efficiency savings are being passed on to you inthe form of lower fees.5 What are the benefits?— The new fee order reduces fees by an average of 10 per cent from22 October 2012.— The order allows us to pass on savings in a full year of £33 millionto our customers in the form of lower fees.— It cuts property search and registration costs for all our customers.6 What applications will the fee reductions apply to?Fees will be reduced for every chargeable application including:— information services – reduced by £1— scale fees – reduced by £10— most fixed fees – reduced by £10.As a result of these reductions, the fee for a purchase of an averagepricedproperty (£161,677 – May 2012 House Price Index), includinginformation and registration fees, will fall from £218 to £204.7 Will the new fee order lead to other changes?The fee order will lead to other changes which conveyancers andlenders should be aware of:— the fee for applications to alter the register will be a fixed fee (£40)rather than a scale fee

Land RegistryFee Order 2012— it clarifies the fees to be paid when a customer applies for anobligation to make further advances or for a maximum amount ofsecurity to be entered in the register— the fee exemption for applications to make an entry relating tochurch chancel repair rights will end on 13 October 2013— there will be a fee for online applications for historical copies ofregister entries – we are planning to introduce this new onlineservice in the near future.— the discounted fee for voluntary first registrations on mines andminerals will not be available and the first registration fee willapply.8 Fees initially increased by 30 per cent in 2009 – why have youdecided to reduce by 10 per cent?Land Registry fees are based on volume of applications received, valueof property and our internal overheads.In 2009 there was a decline in the volume of applications at a timewhen overheads were fixed which led us to face a major loss. Inorder to recover this loss, we increased our fees. Since then we havereduced operating costs as a result of the Accelerated TransformationProgramme but volumes of applications are still well below the levelof the years preceding the property market crash. Had the number ofapplications increased significantly, we might have been able to reducefees further.9 When submitting applications, will online tools and supportingmaterials change?Yes, we have already updated the ready reference guide on fees andover the next 12 weeks, we will update the fees calculator.10 Will this fee order change again in future?This fee order will be in place over the next few years. However, we areplanning a review on the future of our fee structure.11 How will we know when the new fee order has beenimplemented?We will keep you informed of developments as we progress towardsimplementation through our website. We will also issue new editions ofour fee cards.12 Where do I go for more information?For more information about the new Fee order 2012, please visit ourwebsite or contact the Customer Service & Handling Team at fees@landregistry.gsi.gov.uk