Forsters continues with top tier ranking in the 2023 edition of The Legal 500

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Forsters, the leading London real estate and private wealth law firm, has been ranked in its key practice areas in the latest edition of the Legal 500 UK directory.

“Forsters is a firm that really nurtures and brings on its next generation, enabling them client contact and the ability to build their network and express themselves. This is quite unique. They pride themselves on providing a tailored and bespoke personal service where the client feels valued and they are very good at problem solving.”

“Its commitment to its clients is exceptional. Its style is communicative and collaborative.”

The Legal 500 2023

In the latest edition, Forsters is profiled as follows:

  • Ranked in 18 practice areas
  • Top ranked in four areas: private wealth, contentious trusts and probate, residential property and agriculture and estates
  • 70 ‘Recommended Lawyers’ which includes
    • Nine Partners in the ‘Hall of Fame’
    • Six ‘Leading Individuals’
    • Seven ‘Next Generation’ Partners
    • Four Counsel and Senior Associates recognised as ‘Rising Stars’

Our highest ranked areas are set out below.

Agriculture and Estates – Tier 1

Henry Cecil leads a large and specialist team at Forsters LLP that is recommended for its vast experience of handling both transactional and strategic matters including complex tax and estate structuring advice and disputes. It has real strength in depth with key practitioners such as Penny Elliott, Christopher Findley and Andrew Lane. Catherine Hill and Rupert Mead also garner praise for their expertise on tax and trusts matters. Clients include sizeable landed estates, families and trusts with significant property and chattels as well as domestic and international private and commercial investors, wealthy individuals and landowner groups. Other strengths include advising on the establishment of holding structures for family wealth through companies, partnerships and trusts in addition to acting for landowners in relation to development work. It is also rated for its work on capital tax planning matters and on all aspects of the acquisition and disposal of estates, farms and country houses. It is a team of ‘problem solvers’.

Contentious Trusts And Probate – Tier 1

Forsters LLP has a strong track record in this area and advises fiduciaries, protectors and beneficiaries on the full remit of disputes involving trusts, trust structures, wills and estates both in an onshore and offshore context. Other key clients include high-net-worth/high-profile individuals, charities and other professionals and intermediaries. The international side of its practice continues to thrive under the direction of Roberta Harvey. Other key figures include Emily Exton, who is praised for her handling of disputes in the private wealth arena. The team is skilled at advising high-net-worth individuals, family offices, trustees and protectors on trust vehicles and other succession planning structures.

Personal Tax, Trusts And Probate – Tier 1

‘It is the level of expertise’ at Forsters LLP ‘combined with its ‘can-do’ attitude that attracts clients’ with Xavier Nicholas at the helm. It has a large private wealth practice with a pre-eminent reputation for its advice to domestic and international HNW and UNHW clients on a range of complex cross-border and high-value taxation, estate planning and trust structuring matters. It continues to enjoy a regular stream of instructions on multi-billion pound matters for its international client base. Clients include major entrepreneurs, multi-generational families, trustees of significant cross-border estates and well-known artists. Carole Cook is well-regarded for her work on complex tax and trust issues. Kelly Noel-Smith acts for some of the world’s richest families, including Middle Eastern royalty, Greek shipping families and entrepreneurs. Anthony Thompson is among the leading advisers to Middle Eastern UNHW clients. James Brockhurst has recently been promoted to the partnership. ‘For such very clever people, they are also incredibly nice and easy to deal with’.

Residential Property – Tier 1

Under the excellent leadership of Lucy Barber the team at Forsters LLP continues to be active in transactions involving super prime and prime properties in London as well as on the sale and purchase of country houses. It has a diverse client base of wealthy clients who are based in the UK and abroad as well as prime residential developers, banks, property funds and investors. Charles Miéville is considered a ‘go-to’ adviser for particularly complex conveyancing and property financing matters for a client base that consists of a number of high-profile UHNW individuals and landed families. Robert Barham has been busy advising on various high-value transactions on behalf of international clients. Helen Marsh handles a broad spread of issues from high-value sales and purchases to advising on financing issues and landlord and tenant matters.

Family – Tier 2

The team at Forsters LLP is ‘incredibly well respected – and for good reason. The team does everything with real class’. It is led by Joanne Edwards who is a ‘dynamo’ and has a ‘good stable of associates’. It is continuing to see an increased flow of complex cross-jurisdictional work in nuptial agreements; child arrangements and financial cases (which often have complicated trusts and financial structures). Rosie Schumm is frequently instructed in complex litigation for families with substantial wealth across multiple jurisdictions. Simon Blain has a particular strength in difficult financial cases often involving trusts, family business and assets in more than one jurisdiction.

Property Litigation – Tier 2

The team of ‘first-class lawyers’ acts for a large number of landowners, estates and funds alongside property companies, developers and occupier clients. Its workload is equally diverse and has recently included easement and service charge disputes, dilapidation claims, forfeitures and other issues arising from CVAs and insolvencies, in addition to development matters concerning rights to light, vacant possessions and an increasing number of cladding-related instructions. Ben Barrison recently took over as head of the property litigation practice from Natasha Rees, who is now the firm’s senior partner. Barrison is described as ‘one of the very best property litigators around – great on the law, but does not let it distract him from seeing the bigger commercial and tactical picture.’ Another reputable individual is Jonathan Ross; his specialisms lie within rent review and dilapidation claims. Anna Mullins was promoted to partner in April 2021, while the team was also recently boosted by the arrival of Julia Tobbell from Herbert Smith Freehills LLP.

The Occupier View: On leaving Mayfair for Marylebone – Glenn Dunn speaks to EG

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There was a moment – a fleeting, blink-and-you-missed-it moment – in which Forsters could have become a fully remote business. No offices. Zoom and Teams screens only.

This article was originally published by EG on 10 August 2022 and is also available here (behind their paywall).

Head of Corporate Occupiers, Glenn Dunn, says he breathed “a huge sigh of relief” when partners showed “next to no support” for the idea. After all, it would have ended his own project to find Forsters a new headquarters in no uncertain terms. But the fact that the option was discussed, even briefly, shows just how open Corporate Occupiers are becoming to change as they map out their post-pandemic real estate needs.

In June, Forsters confirmed a move to Lazari Investments’ 22 Baker Street, W1. It’s not as radical as going remote, but the relocation still has its surprises. It puts the 500-person firm in Marylebone, leaving its Mayfair home of more than two decades, and it was the only building from a lengthy list of viewings that was not a multi-let. For Dunn, the letting is the culmination of lessons learnt throughout the pandemic.

Early bird

Forsters moved to its current headquarters at 31 Hill Street, W1, in 2005. In the years since, a growing headcount has pushed the firm to take on other offices, at 22 Hill Street, Berkeley Square House and Canary Wharf’s South Quay Plaza. Those have more than doubled its space to 50,000 sq ft, from 23,000 sq ft.

Dunn started looking at options for a move back in 2019. “Every well-advised business will do a stay-versus-go analysis, look at its existing buildings and ask whether, with capital investment, staying put is the right thing – like Slaughter and May, for example,” Dunn says. “But we knew that these buildings were operationally becoming more of a challenge for us, and we were across four sites. We see ourselves as one family and we wanted to be back under one roof, as we were when we moved into this building.”

The lease break at 31 Hill Street wasn’t due until the first quarter of 2023, but Dunn knew that would come around sooner than he and colleagues thought. “The one thing that I learned from my years of acting for occupiers is that the early bird catches the worm,” he says. “You don’t want to leave your search too late because it closes down your options.”

No sooner had the board discussed potential locations and picked CBRE as its adviser, Covid-19 hit. The firm weighed a pause in the search, perhaps with a short-term lease renewal at Hill Street. But Dunn was adamant that the hunt should continue.

“It was clear when you looked at the development pipeline that grade-A stock was going to become a challenge,” he says. “The number of developments starts during Covid really tailed off. Having appointed CBRE to advise us, their predictions – which turned out to be pretty accurate in terms of the huge uptake that was going to come in 2021 – were that there was not going to be the stock available to meet demand.”

Location was a big factor. Forsters’ description of itself on its website is a “Mayfair law firm”. But as the team started to view possible new homes, Dunn knew it had to be open to looking elsewhere and hunted from Paddington in the west to Farringdon in the east.

“We had been considering how much of the brand was tied to Mayfair and how much of it was tied to a differential of not being in the City,” he says. “The advice from CBRE was if you’re going to do an HQ relocation, you have to do a pan-London search because you might just see something that was off of your radar. Moves like Kingsley Napley going to Shoreditch are examples of people thinking outside the box and getting the right building in locations that are not necessarily known for law firms.”

Ahead of the curve

The firm ended up looking at between 12 and 15 buildings, Dunn said – none of which were in Mayfair. All were multi-lets, until an off-market opportunity to take 22 Baker Street appeared. The chance for the firm to have its “own front door and control of reception” was immediately appealing, he adds, and an existing relationship with Lazari helped to swing the deal.

The deal isn’t a downsize – Forsters’ 15-year lease is for 50,000 sq ft, equalling its four existing offices. But that wasn’t always taken for granted – the pandemic shifted how Forsters viewed its requirements in two distinct ways, Dunn says.

“The first one was, how much space did we need?” he says. “That was a difficult question to answer. You’re looking into the crystal ball and you’re trying to work out what growth there might be. Every business has to go through that exercise. You don’t want to end up with extra space that you don’t need on day one.

“The other part of the equation has been the layout of the physical space. So whereas a lot of law firms still are cellular or hybrid, we largely went to open plan back in 2013. We were probably ahead of the curve there because we saw the benefits of people learning by hearing others around them and trying to break down that traditional, cellular, siloed environment. We’ve always been quite economic in terms of how we view space.”

22 Baker Street will undergo a refurbishment once Japanese technology group Fujitsu moves to Lazari’s upcoming Lantern scheme in Euston. Forsters will then move in late next year.

“What we really wanted was something that demonstrated the character of the firm,” Dunn says. “We didn’t want a glass box, something that was ultra-modern. We wanted something with a period feel. But at the same time, we wanted something that has more modern amenities. And that has been a big driver in terms of the accommodation that that we will get at 22 Baker Street.”

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British Legal Awards 2022: Double nomination for Forsters

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We are delighted that Forsters has again been shortlisted in Legal Week’s prestigious British Legal Awards 2022.

Forsters has been nominated in two categories, showcasing the firm’s expertise within the Private Wealth market.

The news bolsters the firm’s market-leading reputation and recognises the quality and complexity of the work carried out for both domestic and international clients.

The firm is delighted to be recognised as finalists in the following categories:

  • Contentious Trusts and Estates Team of the Year
  • Private Client Team of the Year

Xavier Nicholas, Head of Private Client commented: ‘I’m delighted to see our Private Client team recognised as a leader in the market. The nomination reflects the quality of our lawyers, who individually are some of the best in their fields and together bring the strength in depth that the team has across the full range of private client disciplines.”

Roberta Harvey, Head of Contentious Trusts and Estates commented: ‘It’s fantastic to have again received a shortlisting for Contentious Trusts and Estates Team of the Year, a testament to the hard work of our team”

The British Legal Awards, now in their 13th year, represent the ‘best of the best’ within the UK’s legal community. The awards are an opportunity to celebrate the high-quality legal advice that sets the UK legal market apart.

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SDLT cuts – what do they mean for me?

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Following the Mini Budget delivered on 23 September 2022, residential Stamp Duty Land Tax rates have changed (again). Unlike Sunak’s “SDLT holiday of 2020-2021”, Kwarteng has confirmed that these cuts are permanent – a relief for the real estate sector at the prospect of no looming SDLT deadlines.

Unless you are a first time buyer, the cuts are far from ground-breaking but are no doubt intended to be the Mini Budget’s mini boost for the residential property market and will be gratefully received by many.

FAQs

Do the changes apply to me?

Yes, if you are:

  • purchasing property in England or Northern Ireland;
  • have not yet exchanged contracts; or
  • have exchanged contracts but have not yet completed your purchase

When are the SDLT changes effective?

Immediately (i.e. from 23 September 2022)

Is there a cut-off date by which I need to exchange/complete?

No, the government has confirmed these cuts are permanent.

How much will I save?

This will depend on your purchase price and the rate of SDLT which applies. For a freehold property on a purchase price of £500,000:

  • a first time buyer would save £6,250
  • a UK buyer replacing their main residence would save £2,500
  • a UK buyer purchasing an additional property would save £2,500
  • a non-UK resident buyer purchasing their first property worldwide would save £2,500
  • a non-UK resident buyer purchasing an additional property would save £2,500

What if I have already completed?

Unfortunately the cuts will not apply if you completed on your property purchase on or before 22 September 2022.

For further information on SDLT rates please contact the Residential Property team.


Buying and selling luxury residential property in a competitive market

The purchase or sale of a high value home requires expert legal advice to manage the complexities involved. Our lawyers are dedicated to sharing their knowledge to enable you to navigate the legal practicalities of buying and selling high value assets. We will support you through every stage of the process, and with the largest dedicated Residential Property team in London, we have the strength to do this. Visit our Hub to learn more.

Forsters' Luxury Residential Property Hub

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Innovations in Art – a video mini-series with Smartify

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Forsters’ Art and Cultural Property team with Private Client Partner, Catherine Hill launch ‘Innovations in Art’ together with Smartify – the world’s most downloaded museum app.

‘Innovations in Art’, a mini-series of videos, features specialist artists and their works, to help demonstrate innovations in the art world and their relevance today.

We explore evolution in the creative process, ownership and sale of art works and restoration techniques, demonstrating the value of art as a record of our shared cultural history.

In the name of art and from art lovers Forsters and Smartify, watch the first in our mini-series of short videos about art – starting with ‘Innovations in the Art World – changes in the creation of art’.

Changes in the Creation of Art

How did art begin? From 70,000-year old cave paintings using soil, burnt charcoal and chalk to today’s mixing of bright and wonderfully-rich pigments, you’ll hear more about how innovations in art have helped to turn the world technicolour.

From Da Vinci and Vermeer, using science, maths, and now high-tech solutions, digital art and NFTs – see how the art world has progressed and hear from modern day experts including Richard Deacon RA – award winning abstract sculptor.

Experience and enjoyment

Why is art inseparable from life? It’s embedded in our need to tell stories, to inspire and to provoke us into thinking. George Sand said it’s meaningless without an audience and that the sale and enjoyment of art is as important as the art itself.

Watch our video to travel down the ages from the paintings of Gainsborough to commentary from modern-day sculptor Richard Hudson, and discover how art in the public eye has developed from portraits of the individual (the figurative), to the abstract, taking on different shapes and forms;an interesting reflection of the times we live in.

Innovations in conservation and preservation in art

Why do people vandalise art? Did you know that the Mona Lisa has been damaged five times, and that Rembrandt’s Nightwatch was attacked with acid and a knife? We ask what drives this and what innovations we see in our restoration techniques used to conserve our masterpieces and enjoy them today?

Up to date techniques including imaging, high resolution photography, analysis and AI all help to establish what was missing from damaged artworks for future generations. Kalliopi Lemos, sculptor, painter and installation artist give her insight into the importance of choosing the right materials when we produce art.

How does Smartify work?

Smartify is a free app that allows you to explore the artworld virtually, taking digital tours or using it to find works on show at home and abroad. It can scan artworks in order to not only identify them but also to access instant art commentary on your mobile device. It makes artwork accessible for a global audience through innovative technology and engaging storytelling. Smartify was founded in 2015 and now works with over 150 museums, galleries and historic houses worldwide, delivering information about opening hours and what’s on locally and internationally and providing audio and visual guided tours of venues, and information about individual artworks and artists at the click of a button.

View the mini-series ‘Innovations in Art’ on Smartify

About our team

Against this backdrop, Catherine Hill and her team aim to demonstrate both their collective and individual love of art that translates into ongoing work at Forsters, helping to promote the private client and wider specialist services that Forsters provides to living artists.

The team provides a full range of services for artists in order to help maximise the value of their art and, in the long-term, build an enduring legacy.

Services include:

  • Tax efficient structuring of the artist’s business
  • Advising on contractual relationships with galleries, museums and other institutions
  • Advising on employment of interns, studio assistants and managers, curators and archivists
  • Supporting the management of an artist’s archive
  • Advising on intellectual property rights and royalties for protection of the artist’s work
  • Tax advice and support
  • Preparing Wills and structuring foundations and alternative entities for legacy planning purposes

Forsters’ Private Wealth practice is top [Band 1] ranked in the latest edition of The Chambers HNW Guide.

Further information on our Art and Cultural Property Group’s specialist expertise can be found here.


“Follow the paint” on a unique tour of artist Jock McFadyen’s studio whilst he reveals the mastery behind his paintings and artistic legacy

Forsters’ Head of Art and Cultural Property, Catherine Hill, joins longstanding client Jock McFadyen at his artist studio in London Fields for a captivating conversation in which Jock reveals his painting techniques, reflects on a 50-year career and the challenges of accepting the kind of artist you’ve become, as well as musings on the future of the art market.

a unique tour of artist Jock McFadyen's studio whilst he reveals the mastery behind his paintings and artistic legacy

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The Register of Overseas Entities: how does it apply to trusts?

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The new register of overseas entities (“ROE”) maintained by Companies House came into effect on 1 August 2022. The aim of the ROE is to record the beneficial ownership through “overseas entities” of land in the UK. Non-compliance with registration obligations will in practice make it impossible for overseas entities to buy, sell, let or charge UK land and also carries criminal sanctions. It is therefore crucial that overseas entities, including corporate trustees, are aware of their obligations in relation to the ROE.


Download this briefing in PDF format

Download in PDF format


Our briefing answers the following key questions:

  • What is the Register of Overseas Entities?
  • Which kinds of entities are required to register on the ROE?
  • What is a “Qualifying Estate?”
  • When must an Overseas Entity register on the ROE?
  • What information does the Overseas Entity have to provide to the ROE when registering?
  • What information on the ROE is publicly accessible?
  • Who are “Registrable Beneficial Owners”?
  • How does the new requirement to register on the ROE apply to trusts and their related entities?

Read our full briefing here

Should I buy a home on my own before we get married? Helen Marsh answers the Financial Times reader’s question

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Residential Property Partner, Helen Marsh, answers a reader’s question in the Financial Times’ article entitled “Should I buy a home on my own before we get married?”

Helen identifies two issues in her response, one relating to tax and the other to joint ownership, and discusses the benefits of entering into a declaration of trust which clarifies respective shares in a property. She also addresses issues around stamp duty and other tax implications if gifted money is shared between a couple in order to purchase a property in which one of the individuals is not a first time buyer.

The full answer can be read here, behind the paywall.

For further guidance on this topic, please contact our Residential Property team.

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Space Junk: the new frontier for sustainability?

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Dr Hannah Wakeford, lecturer in Astrophysics in the School of Physics at the University of Bristol, and senior associate Laura Haworth join podcast host Miri Stickland to talk about the issue of space junk in Earth’s increasingly crowded orbit, its potential impact on planetary environments and shared lessons for sustainability in space and in our built environment.

In this episode we were joined by:

Listen to more episodes and subscribe

You can listen to more episodes of the More Than Law podcast here on our website, as well as subscribe on your favourite podcast services, including SoundCloud, iTunes/Apple Podcasts, Spotify, Stitcher, TuneIn and YouTube.

To continue the conversation on social media, use #MoreThanLawPodcast.

Google suffers blow in battle against €4bn EU fine: Caroline Harbord comments in The Times

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Dispute Resolution Partner, Caroline Harbord, has been published in The Times commenting on the recent European Court ruling which saw the owners of Google lose their appeal against a record fine for abusing its dominance of the Android phone system.

Caroline commented that “Not only is the hefty fine bad news for Google in an of itself” but that the ruling “will very likely be used as a foundation for huge follow-on damages claims — potentially running into the billions —from those who have suffered loss as a result of Google’s conduct”.

Read the full article here (behind a paywall)

In a further article for The Times, Caroline followed up by saying that the UK’s competition appeal tribunal’s opt-out group was “becoming increasingly tried and tested and funders and insurers are willing to back them — as demonstrated by the action filed against Google in respect of advertising malpractice”.

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Landlords on alert as Cineworld collapse raises spectre of widespread closures – Andrew Denye speaks to CoStar

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Head of Retail, Andrew Denye, has offered his comments to CoStar News on how Britain’s Cineworld, the world’s second-biggest cinema chain, has filed for bankruptcy protection in the US in a move that has left landlords across the country staring down the barrel of widespread anchor-unit closures.

The group operates 751 movie theatres including more than 500 in the US, as well as more than 100 in the United Kingdom and Ireland. In Britain it also owns the Picturehouse chain.

Cineworld said in a statement that it had filed for Chapter 11 protection, a court-supervised restructuring in the US that gives companies breathing space to negotiate with creditors on debt.

It confirmed it will try to renegotiate leases, while existing management will stay in post.

It added that it aims to emerge from bankruptcy proceedings in the first quarter of 2023 and had secured $1.94 billion in financing from existing lenders.

Landlords across the country will clearly be concerned that a key tenant in major developments is about to exit, or seek to sublet space, with the recent disappearance of department stores such as Debenhams from the high street and malls a worrying precedent in terms of scale.

Andrew says Cineworld appeared to be facing a perfect storm of the dramatic impact of COVID-19 on cinema attendance, followed by the cost of living crisis and finally the problem that not enough “top-notch” films are being produced.

“Then they have a significant amount of debt. And it is almost a classic case of ‘big is not always best’ as they have a huge number of big buildings at a time when for numerous reasons cinemagoers don’t really need all that space. There is talk of a sizeable chunk of money there to help them, but a problem is the market has moved to the high end with Everyman, or lower end, and Cineworld has tracked through the middle to a degree.”

In terms of what lease negotiations with landlords will look like, Denye said Cinewold may choose the company voluntary arrangement route, a method of restructuring real estate in the UK that has been much less used in the past 12 months as market conditions have improved for retailers and leisure operators.

CVAs are legally binding agreements with a company’s creditors to allow a proportion of its debts to be paid back over time and need 75% of the creditors, by value, to support the proposal. For a review of why they have been controversial in the UK and why they have been few and far between recently click here.

What Ever Happened to the Landlord Fight Against CVAs?

“They may go the CVA route which immediately solves the negotiation point as it is what it is. If they try to renegotiate leases, because their spaces are so large they are effectively an anchor so ultimately landlords will do what they can to help them keep the doors open; the alternative is going to be very painful.”

That is because fitting out a cinema is extremely expensive and the auditorium for instance is more difficult to repurpose than for instance department store space.

“It is going to require a sizeable cheque,” Denye agrees. “We will see closures, that is clear, but we also might see them try to carve out underlet portions of space.”

Denye said there is a real prospect of more CVAs again this year from operators.

“I think, that 2021 we saw an improvement in conditions for retail and leisure as people got out and about. But I think the energy crisis will have a dramatic impact and even this week I have seen occupiers put things on pause citing the cost of energy.”

In terms of Cineworld’s likely cause of action Denye says it is too early to tell. “All we know is what they have done in the States, but landlords up and down the country will be expecting a phone call or more likely will be making a phone call. It is a genuine asset management challenge.”
Recently Cineworld was on the losing end of a critical legal battle over COVID-19 rent arrears which will also be a backdrop to negotiations.

London Trocadero and the Bank of New York Mellon were backed at the Court of Appeal in linked landlord test cases against Picturehouse Cinemas and Cine-UK in a decision with major implications for commercial landlords and tenant negotiations in England and Wales.
A three-judge panel dismissed the two claims from the tenants ultimately including Cine-UK and Cineworld. The Trocadero case against Picturehouse Group related to £2.9 million of specific rent arrears owed, but many other landlords and tenants have been awaiting the decision. For a review of three critical cases focused on the matter during the pandemic click here.

This article was originally published on 8 September 2022 on the CoStar website and can be found here (behind their paywall).

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Freeports key to hydrogen hubs – Elizabeth Small writes for Property Week

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Corporate Tax Partner, Elizabeth Small, has written for Property Week’s Legal and Professional section on the benefits of siting “green” hydrogen production plants in Freeports.

Freeport-based green hydrogen sites could serve as accessible international hydrogen exportation points and provide a clean fuel for maritime use, while also benefitting from the various Freeports tax incentives, including an exemption from stamp duty land tax.

In Small’s opinion: “If the freeport status does its job of creating a dynamic high-growth cluster, there is a happy side effect in the attraction of the many experts, investors and innovative businesses that will be vital to the hydrogen ecosystem.”

To read more about the benefits of Freeports and how they may be used for a net zero future, click here.

This article was first published in Property Week on 24 August 2022 and is available to read in full here, behind their paywall.

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Caroline Harbord to speak at ThoughtLeaders4: Group Litigation and Class Actions

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Dispute Resolution Partner, Caroline Harbord, has been invited to speak at the ThoughtLeaders4: Group Litigation and Class Actions.

Expanding on last year’s success, this two day conference will be covering major areas of group litigation in the UK, international developments and practical considerations for bringing and defending against class actions.

Caroline will be speaking on the panel: ‘Group Litigation in the high court’.

The conference will take place from 19 to 20 October 2022. You can view the full agenda, and register to attend, here.

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Passing the Baton – Natasha Rees and Smita Edwards speak to EG

Two blurred figures walk in an office, featuring a circular staircase and modern furniture. Glass walls partition a conference room, enhancing the open, contemporary workspace design.

As Natasha Rees takes over as Senior Partner from Smita Edwards, the pair speak to EG about Forsters, its future, and the upcoming move from Mayfair to Marylebone.

The Forsters pair were quizzed by EG’s Jess Harrold who touched on a number of important issues such as the global events during Edwards’ 8-year tenure as Senior Partner, and their effects on the real estate market, as well as how the baton is proudly being passed to former Head of Property Litigation Rees ahead of the firm’s move to Marylebone. The article focuses on key issues such as the commitment to maintaining profitability while also maintaining the firm’s unique culture. It also highlights the Forsters partners’ commitment to capitalise on the firm’s reputation for being an inclusive and friendly place to work by designing their new premises with staff wellbeing and sustainability firmly in mind.

The article concludes that “If Brexit and Covid couldn’t throw the firm off course during Edwards’ tenure…the looming clouds of recession on the horizon should hold little fear for Rees.”

“Over to you and have some fun,” Edwards says to Rees, smiling. “It’s a great business.”

This article was first published by EG on 2 August 2022 and can be read in full here, behind their paywall, or here.

How divorce settlements are calculated and when is best to draw one up – Guy Mawson writes for ePrivateClient

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Family Senior Associate, Guy Mawson, has written for ePrivateClient on divorce settlements and when is best to draw one up.

In the article, Guy discusses the principles that must be applied so that both spouses, or civil partners, receive a fair financial outcome.

The article was first published on ePrivateClient on 30 August 2022, and is available to read in full here.

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Caring for our aging population

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Marking the start of World Alzheimer’s Month, an annual event raising awareness and challenging stigma surrounding Alzheimer’s and dementia, podcast hosts Miri Stickland and Robert Linden Laird Craig are joined by partner Amy France and counsel Mike Armstrong to talk about the advantages of forward planning for later life, the importance of having difficult conversations at the right time and the evolution of later living homes in the UK.

In this episode we were joined by:

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Dickon Ceadel and Maryam Oghanna listed in ePrivateClient’s Top 35 under 35 2022

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We are delighted to announce that Senior Associates Dickon Ceadel and Maryam Oghanna have been listed in ePrivateClient’s Top 35 under 35 2022.

Once again, this is a testament to the talent and strength of our next generation of lawyers, together with Forsters’ commitment to nurturing and promoting the talent of our senior associates who are a key part of our continued growth as a firm.

Eprivateclient’s Top 35 Under 35 initiative is designed to identify, recognise, promote and introduce the rising stars of the Private Client practitioner community in the UK.

Dickon advises on all aspects of private family law, including divorce and separation, financial claims, pre – and post – nuptial agreements, cohabitation disputes, and all issues regarding private children law including surrogacy.

Maryam is a Senior Associate in the Dispute Resolution team, specialising in disputes regarding Trusts and Estates. She advises on a broad spectrum of contentious trusts and estates matters at both domestic and international level and has represents a variety of clients across multiple jurisdictions.

Congratulations!

The full results can be viewed here.

Powering the UK: Balancing National and Local Agendas – Victoria Du Croz writes for EG

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In the second article in a three-part series on energy supply, Head of Planning, Victoria Du Croz, discusses national targets, local planning and the importance of biodiversity net gain.

The government’s plan to increase the UK’s energy self-sufficiency is urgently needed, but it doesn’t account for the inherent conflict between national policymaking and local political pressures.

At the local level there is already significant competing demand for land, whether for the delivery of much-needed housing, logistics, social infrastructure or national infrastructure. Now added into the mix is the top-down strategy to move away from a reliance on fossil fuels, increase clean energy sources and decarbonise the economy, resulting in a push for renewable energy projects.

April’s Energy Security Strategy adds urgency to existing energy policy. It was preceded in December 2020 by the government’s energy white paper, Powering our Net Zero Future, which built in turn on existing policy commitments set out in the Ten-Point Plan for a Green Industrial Revolution and the National Infrastructure Strategy. Those documents set out the government’s vision of how the UK would make the transition to net zero by 2050.

While the cost-of-living crisis and increased scrutiny on gas supplies from Russia may have shifted the dial slightly in terms of local sentiment towards energy projects, there is a long way to go to deliver the wind farms, solar farms and supporting infrastructure to make the UK self-sufficient and net zero.

The government’s decision in early June to permit new drilling in Surrey to establish the size of a natural gas field highlights the tensions between local and national sentiment, with Surrey County Council having blocked the project twice in recent years. It also highlights the increasing conflict at national level as the government grapples with decarbonisation at the same time as trying to alleviate cost pressures for consumers amid Russia’s war in Ukraine.

National need and local lobbying

Local decision-making and consultation are a vital part of the planning system. However, there is an inherent tension when the government insists on developments securing local support, while also pushing the delivery of key infrastructure that benefits the wider population.

In response to significant local opposition to onshore wind farms back in the 2010s, the government issued a written ministerial statement in 2015 preventing local planning authorities from granting planning permission for onshore wind farms unless the site was allocated as such in the development plan and local support could be demonstrated.

At the same time, the government also amended the Planning Act 2008 so that applications for onshore wind farms are determined under the Town and Country Planning Act 1990 rather than under the Nationally Significant Infrastructure Planning regime, owing to communities complaining that they felt excluded under the latter regime.

While this effectively killed off the delivery of onshore wind farms in some areas, in other parts of the country this tension has played out by local opposition being overruled and planning permission ultimately being granted. In the Scottish Highlands – albeit under a different consenting regime – local decisions to refuse wind farm applications have been overturned 40 times in the past five years, while secretary of state for business, energy and industrial strategy Kwasi Kwarteng has gone against recommendations from the Planning Inspectorate by granting planning permission for the multi-billion-pound Norfolk Vanguard Offshore Wind Farm.

A Politico poll from earlier this year indicated 72% of people would support new wind farms in their area, but query whether that support included residents located adjacent to such projects.

In the British Energy Security Strategy, the government states it will not amend the current planning regulations for onshore wind, in all likelihood meaning the 2015 written ministerial statement will remain in place. Instead, it will look to develop local partnerships for a limited number of “supportive communities who wish to host new onshore wind infrastructure”, with the incentive for the community of guaranteed lower energy bills. Given the current cost of living crisis, it will be interesting to see if such incentives mean there is competition to be one of the identified communities.

While the tide may be turning a little, objection from local communities is not going to blow over anytime soon.

Biodiversity net gain

Renewable energy, conservation and the environment have historically had a conflicted relationship. Often the sites that are seen as suitable locations for wind turbines and solar panels are those that are also species-rich. There have been cases of endangered birds being affected by wind turbine blades, as well as the ground intrusion and disturbance of building solar and wind installations.

In June 2022, there was a parliamentary debate on the location of solar farms owing to growing concern with them being constructed on greenfield sites. In response to the debate, the government confirmed it will consult on amending planning rules in England to strengthen policy in favour of solar development on non-protected land. However, given the reduction the cost of generating solar energy and the government’s commitment to a fivefold increase in solar energy generation, it is widely accepted that a considerable number (potentially 50%) of solar farms will need to be located on greenfield sites.

In the Environment Act 2021, the government introduced a biodiversity net gain target of 10% as a condition on all new planning applications. It can be considerably harder to deliver this level of net gain on solar developments located on greenfield sites, which are likely to have a higher starting level of biodiversity than brownfield sites.

In addition to the 10% uplift, there is an ongoing 30-year maintenance requirement for the biodiversity, which can be difficult to achieve in often densely packed solar farms. The ability for other developments to deliver biodiversity net gain off-site is likely to further increase competition for sites.

The case for cross-boundary co-operation

Who takes on responsibility for ensuring that sufficient energy projects are brought forward? Will local authorities be prepared to allocate sites for renewable energy projects? Where is the strategic direction to ensure that new wind farms and solar farms are being delivered in the numbers that are required?

The numbers are significant. To meet the government’s ambition for all energy to be from “clean sources” by 2035, offshore and onshore wind capacity would need to quadruple and double respectively. It is highly likely that some areas of the country will need to deliver most of the solar and wind farms the country needs. Wind and solar farms require significant space to generate the level of electricity the UK needs to meet its net zero targets, but sites that are deemed suitable often come up against other land designations, such as preservation of the green belt in the National Planning Policy Framework or areas of outstanding natural beauty.

The current duty to co-operate on local planning authorities when plan-making is set to be abolished through the Levelling-up and Regeneration Bill, and there is a lack of clarity on how it will be replaced to ensure cross-boundary co-operation between local authorities.

Some in the industry have been calling for the return of the controversial regional spatial strategies, revoked in 2010, which aimed to bridge the gap between local planning issues determined by local planning policies and nationally determined policy aspirations.

The Levelling-up and Regeneration Bill introduces “national development management policies”, which essentially aim to take “general” development control policies out of local plans, with these set centrally instead. These national development management policies – expected to include green belt designation and heritage protection – will be given the same weight in decision-making as development plans.

Currently, planning applications under the 1990 Act regime are determined in accordance with the development plan unless material circumstances indicate otherwise. The Bill is proposing to strengthen this so that material circumstances must strongly indicate otherwise before applications can be granted if they depart from the development plan – and, in future, national development management policies. It will be interesting to see whether the nation’s energy security and net zero ambitions will be sufficient material circumstances to support sites not allocated in the development plan.

The resourcing challenge

It is widely recognised that planning departments are severely under-resourced. The government’s latest initiative to increase planning fees, unveiled as part of the Levelling-up and Regeneration Bill, is being billed as one way to help address this. But an uplift in application fees is by no means a panacea for the challenges that local authorities’ planning teams are grappling with owing to funding cuts over the years, including low staff numbers and a huge volume of work. A quick job search highlights the issues, with hundreds of vacancies listed for planning officers at local authorities.

Yet the government has signalled that planning will be sped up for solar, and both on- and offshore wind. Which specific mechanisms will be used to bring forward more sites and achieve quicker determination of planning applications remains to be seen. The government could place an obligation on local planning authorities to allocate sites, but that would need to happen within the local plan process and sites could take years to work their way through the plan-making system, especially given the necessary transition provisions before the Bill’s proposed amendments to development plans.

The wind is definitely blowing in the direction of renewable energy generation, but there is a long way to go before the UK is running on clean sources.

This article was originally published in EG (27 June 2022) and is also available to read here behind their paywall.

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When a collateral warranty is a construction contract – Daniel Burr and Sophie Togwell write for the Property Law Journal

Construction workers in high-visibility vests and helmets stand and communicate amidst metal scaffolding at a construction site, with sunlight streaming through an open structure.

Construction Senior Associate, Daniel Burr, and Associate, Sophie Togwell, have written for the Property Law Journal, on necessary criteria for defining a collateral warranty as a construction contract.

“It was held that, for a warranty to be a construction contract, it must be an agreement for the carrying out of construction operations, meaning it must relate to the performance of works rather than just the quality of work.”

Their article references the outcome of a recent Court of Appeal decision, which states that a collateral warranty can be a construction contract under s104 of the Housing Grants, Construction and Regeneration Act 1996.

The pair go on to discuss the case, its issues, and the wider practical implications of the ruling.

This article was first published in Property Law Journal 400 (September 2022) and is also available on lawjournals.co.uk.

The full article can be read here.

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Family Governance as a Tool of Next Gen Wealth Planning in Asia – Patricia Boon writes for Thought Leaders 4

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Private Client Partner, Patricia Boon, has authored an article for Thought Leaders 4 on next gen wealth planning in Asia.

The article was first published in Thought Leaders 4 Private Client Magazine ‘Next Gen Wealth’ in August 2022 and can be read in full below.

It is well-documented that a good number of high-net worth Asian families are on the cusp of a very significant inter-generational transfer of wealth as, over the course of the next decade, we will see the ownership and stewardship of family wealth and family businesses pass from the hands of the wealth generators/creators of Generation 1 to Generations 2 and 3.

The families standing at the precipice of this change will, in some cases, not yet have considered the implications of this inter-generational wealth transfer or, if they have, may be uncertain as to how to deal with them. Family businesses are at their most vulnerable at the point of this transition, particularly when the business founder/wealth creator is still the person at the helm. For such families, family governance planning can enable them to meet the challenges that this transition to the next generation poses.

The main challenges facing families in this position are:

  • to ensure that the value that has been generated by Generation 1 can be preserved, grown, and perpetuated for the benefit of future generations and/or for philanthropic purposes; and
  • to equip the next generations to deal with the businesses, assets, or structures that have been passed on to them so as to avoid a diminution in the value of the business or dissipation of the wealth.

There are further sub-sets of challenges within these categories, including the risk of inter-generational and cross-generational conflict, risks to family harmony as the number of family members grows and becomes more disparate, and the risk of divorce.

If these challenges are to be navigated successfully, it is essential for Generation 1 to look carefully at how to involve Generations 2 and 3 in their succession planning and to obtain the next generation’s contribution and buy-in to the philosophy that will shape the family’s management of their businesses and assets for the medium to long-term. However, it is often difficult for Generation 1 to let go of the reins; of the respondents to the PwC Global NextGen Survey 2022, 45% said that they found it difficult to prove themselves as a new leader or board member in the business. In this context, family governance planning has an important role to play, as the implementation of a governance framework for families to manage succession to the business and/or control of family assets is a key way to involve the next gen today and to minimise the risk of dispute and wealth dissipation tomorrow.

Using a Family Governance framework to involve the next gen

The aim of any family governance strategy should be to ensure that there is a robust and flexible succession plan in place for Generations 2 and 3 (and beyond) to play their part as stewards of the family wealth and assets.

Good communication is essential to mitigating the risk of disputes and conflict, as it encourages transparency, minimises suspicion, and offers the opportunity for the stakeholders to have their say.

Where the family is at the start of the governance exercise, it may be helpful to have a third-party, such as the family’s trusted advisor, to co-ordinate the discussion process, meeting together and individually with Generation 1 and members of Generations 2 and 3. This is an important step to flush out areas of frustration, that are ripe to develop into points of conflict between the generations, so that these can be discussed and addressed openly at the outset. It is noteworthy that, in the studies looking at the difficulties inherent in inter-generational wealth transition, many next gens of business families who are surveyed cite their frustration that they are unable to have a voice. Consequently, open dialogue is a crucial part of allowing the next generation to feel involved and engaged.

The creation of a family council can ensure that each family branch has a voice and representation. Where there are family trusts, the family council can act as an interface with the trustees, ensuring a regular flow of information to the family members. The family council can also act as a ‘training ground’ for the next gen, making clear the expectations there will be of any family member who wishes to work in the family business, any requirement to have undertaken particular work experience within or without the family business, and/or setting out criteria that must be met for a family member to be considered eligible to work in the business.

A family council may also allow the next gen to:

  • observe the workings of the family council before assuming a formal role;
  • receive training in understanding the family business, responsibilities and duties of office-holders and shareholders, and financial statements.

Such training can help to identify at an early stage the leaders of the future who have the relevant qualities and skills to contribute to the business.

Where there are multiple shareholders, shareholders’ agreements are a valuable tool which can be used to educate the next generation in relation to shareholder co-operation. They are also useful for focusing the attention of Generation 1 as to whom shares should be transferred.

The involvement of experienced and trusted non-family management and advisors has a role to play, as these individuals can offer objectivity and can act as a sounding board to the different generations, as well as assisting in the transition of Generation 1 out of day-today control into an ‘oversight’/advisory role.

There is no ‘one size fits all’ solution to sorting out the myriad issues that business and wealth transfer will bring to the fore between family members.

However, what is self-evident is that a failure to consider succession planning and the involvement of the next generation (and beyond) in a timely fashion will increase the risks of family conflict and fragmentation of wealth to the detriment of all of the family members.

This makes it vital for wealth creators to recognise the value of involving the next generation in their succession plans early on, and to understand the means available to them to achieve this.

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Forsters advises Fiera Real Estate UK and Wrenbridge on the acquisition of a 2.3 acre development site in Hemel Hempstead

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Forsters has advised Fiera Real Estate (“FRE UK”) and Wrenbridge on the acquisition of a 2.3 acre site in Hemel Hempstead for the speculative development of a new 52,000 sq.ft Grade A industrial warehouse scheme with a GDV of £22m. The proposed development will benefit from 12 metre clear internal eaves, 50kN/sq m floor loading, PV panels, electric car charging points and high efficiency HVAC systems.

The site was purchased through the Fiera Real Estate Logistics Development Fund UK (“FRELD”) and represents the first acquisition for the fund which reached its first close earlier this year with £180m of equity committed. All assets in FRELD’s portfolio will meet the rigorous environmental and social requirements set out by FRE UK’s Sustainable Design Brief, which align with its ambition to drive positive change and contribute to a low carbon economy. The scheme has had ESG considerations embedded at all stages of its design process and along with future projects for the fund, it will be targeting net-zero carbon construction, BREEAM Excellent and EPC A.

The site is situated within the Maylands Business Area, which is a prime industrial location and is less than two miles from Hemel Hempstead town centre. The town is one of the principal commercial centres of Hertfordshire and the property benefits from excellent transport links due to its strategic placement one mile from the M1 motorway and four miles from the M25 motorway. Hemel Hempstead also provides regular train services to London within 30 minutes.

Chris Button, Fund Manager of Fiera Real Estate, commented, “We are very pleased to have completed on our first acquisition for the fund and to be bringing forward yet another high-quality and sustainable scheme alongside our Operating Partner, Wrenbridge. The fund is targeting similar sites for speculative industrial development around the UK.”

Jamie Garrett, Director at Wrenbridge, commented “We are really pleased to be delivering much needed, sustainable high quality industrial space to the local area, which will meet demand for traditional warehouse occupiers but will also appeal to mid-tech, R&D and life science operators. The scheme will make a strong contribution to the local economy boosting local jobs. We look forward to delivering this with Fiera.”

Commercial Real Estate Partner Jade Capper, assisted by Senior Associate Daniel Steele, advised on the deal.

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Ready, Steady, (almost) GO! The Register of Overseas Entities is live

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The register of overseas entities managed by Companies House (the Register) is now live and accepting applications, but there is a short grace period until 5 September for the registration of land transactions. In this update we set out more detail as to the registration requirements and process and our thoughts as to what overseas entities should be doing now to ensure compliance.


Download this briefing in PDF format

Download in PDF format


Background

The English government has established the Register with the intention of increasing “transparency”, to allow “law enforcement agencies to investigate suspicious wealth more effectively”. Essentially, any overseas entity which owns or is to acquire UK property will need to register, providing details about the entity itself and its beneficial owners. HM Land Registry will enter restrictions against the title of such property so preventing the overseas entity from entering into various property-related transactions unless it is on the Register. Failure to comply with the requirements to apply to be on the Register can constitute an offence.

Further detail about the Register and the obligations arising can be found in our earlier note on the topic (see our article here). Since that note’s publication, additional regulations have been published adding in extra layers of process.

Key Dates

The Register went live on Monday 1 August 2022, meaning that overseas entities can now apply to Companies House to be admitted to the Register.

The property-related provisions will however, only take effect on 5 September 2022. This grace period has been implemented to avoid property transactions being held up by the need to register. Its effect is that any overseas entity currently in the middle of a property acquisition which completes and in respect of which the application to register the transaction at the Land Registry is made before 5 September will not need to be on the Register in order to complete and make the necessary entries at the Land Registry. However, any overseas entity which intends to complete the purchase of any UK property and to apply to register the transaction at the Land Registry on or shortly after 5 September would be wise to apply to the Register now to ensure that the registration process does not delay completion. As from 5 September 2022, overseas entities will not be able to register a freehold interest or a lease exceeding seven years from the date of grant unless they are registered on the Register at the time the (Land Registry) application is made.

Any overseas entity which held UK property prior to 4 September 2022 will need to apply to register in any event by 31 January 2023 (i.e. six months from the Register going live). This registration obligation applies to overseas entities which became registered as proprietor of the UK property pursuant to an application to the Land Registry on or after 1 January 1999. However, bear in mind that where an overseas entity acquired UK property between 1 August 2022 and 4 September 2022, it will not be able to dispose of that property or grant a legal charge over it unless it is duly registered. (Overseas entities which acquired the UK property prior to 1 August 2022 will be able to make such a disposal without first being on the Register until 31 January 2023.)

Any overseas entity which has made a disposition of UK property since 28 February 2022 must provide details to Companies House by 31 January 2023. Where the overseas entity is obliged to register (because it still owns UK property), the details of such disposition must be provided at the time of its application to register.

UK-Regulated Agent

To register, an overseas entity will need to provide certain information about itself and its beneficial owners (or if there are no beneficial owners, its managing officers) to Companies House. Pursuant to regulations published earlier in the summer, such information must first be verified by a “UK-regulated agent”. Registration will not be possible without this verification from a UK-regulated agent. The information must be verified not more than three months before the application to register is sent to Companies House.

Service providers such as accountancy firms and law firms are among those who may apply to become a UK-regulated agent but obviously, there are responsibilities, risks and potential liabilities which also come with the position. It is to be hoped that a publicly available list of such agents will become available in due course. The verification process is not exactly aligned with the requirements of anti-money laundering regulations, so overseas entities may find they are required to provide more detailed information than is ordinarily required for transactions.

The UK regulated agent can submit the registration application with the verification statement, or if the overseas company is making the application itself, the agent can provide the verification separately to Companies House by email within 14 days of the application being made.

Verification will also be required when the overseas company complies with its duty to update its entry on the register each year.

Fee

There is a registration fee of £100 payable to Companies House.

Practical Steps

  • Overseas entities which: (a) currently hold UK property; (b) disposed of UK property since 28 February 2022; or (c) intend to acquire UK property, should be collating the information required to register and submitting their registration applications to Companies House as soon as possible
  • Acquisitions of a freehold interest or of a lease for a term exceeding seven years from the date of grant or the grant of a legal charge which are completed and registered at the Land Registry between 1 January 1999 and 4 September 2022 will not immediately be affected by the Register, but the purchaser should register as soon as possible (and must register by 31 January 2023)
  • Acquisitions of a freehold interest or of a lease for a term exceeding seven years from the date of grant cannot be registered at the Land Registry after 5 September 2022 unless the overseas entity is on the Register
  • Overseas entities must provide details of any disposal of a freehold interest or of a lease for a term exceeding seven years from the date of grant or the grant of a legal charge since 28 February 2022 to Companies House by 31 January 2023 whether or not the overseas entity in question needs to be on the Register
  • The disposal of a freehold interest or of a lease for a term exceeding seven years from the date of grant or the grant of a legal charge by an overseas entity which acquired the property on or after 1 August 2022 will not be permitted unless the overseas entity is on the Register
  • An overseas entity which acquired the property and applied to be registered at the Land Registry prior to 1 August 2022 can dispose of a freehold interest or of a lease for a term exceeding seven years from the date of grant or grant a legal charge in respect of the property before 31 January 2023 without first being on the Register, although it will still need to apply to the Register and provide details of the disposition by 31 January 2023.

Disclaimer

This note reflects the law as at 1 September 2022. The circumstances of each case vary and this note should not be relied upon in place of specific legal advice.

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Lianne Baker
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