Completion and post-completion steps (Procedural steps for the assignment of a lease)-FS

Question 1

What is the first post-completion step after assigning a registered lease?

Answer 1

The assignor’s solicitor must submit an application to the Land Registry to update the registered proprietor to reflect the assignee as the new leaseholder.

Question 2

Who is responsible for paying Stamp Duty Land Tax (SDLT) in a lease assignment?

Answer 2

The assignee (buyer) is responsible, but SDLT is payable only on the purchase price, not the rental payments.

Question 3

Is SDLT always payable in an assignment of a lease?

Answer 3

No. SDLT is only payable if there is a consideration (purchase price). If the lease is assigned for no value, no SDLT is due.

Question 4

When is notice of assignment required in a lease transaction?

Answer 4

When the head lease contains a term requiring it, the assignor must give notice to the landlord.

Question 5

Post-Completion Steps for Lease Assignment

Answer 5

1. Registration with the Land Registry (if registered title)
2. Payment of SDLT by the assignee (on consideration only)
3. Notice of assignment to the landlord (if required by head lease)

Question 6

What should the assignor do with the notice of assignment?

Answer 6

The assignor should:

• Ensure one copy is delivered to the assignee
• Ensure one copy is retained by the landlord

Question 7

What is the legal effect of registration after assignment

Answer 7

It provides legal recognition that the assignee is now the registered proprietor of the leasehold interest.