Buying a house with an annexe and Stamp Duty Land Tax

Before you bid for a houses with an annex you need to carefully consider the amount of Stamp Duty Land Tax (SDLT) you will have to pay; it is complicated.

Mind the registration gap

The High Court decision in Bennets Courtyard Limited v Bennets Courtyard Airspace Limited [2026] EWHC 1119 (Ch) provides an important warning for anyone preparing a collective enfranchisement claim where the freehold has recently been sold.

The case confirms that, during the period between completion of a transfer and registration of the purchaser at HM Land Registry—the familiar “registration gap”—the relevant freeholder for the purposes of the Leasehold Reform, Housing and Urban Development Act 1993 remains the registered proprietor.

A section 13 initial notice served only on the purchaser awaiting registration will therefore be invalid.

That may appear technical. In practice, however, getting this wrong can cause the entire claim to fail.

Does a development constitute a number of separate buildings for freehold enfranchisement?

Does a development constitute a single “building” or a number of separate “buildings” for the purpose of freehold enfranchisement?

There have been a number of decisions around the question of whether flat owners’ rights operate on a block by block basis or in respect of a number of blocks via single claim in connection with collective enfranchisement, the enfranchisement of the freehold to a single house, the right to manage and the right of first refusal.