Wednesday, 20 May 2026

OFF-PLAN HIGH-RISE PROPERTY (FLATS)

by: MisS VictoriA DaviD

Courtesy of pngtree.com

A month ago (April 2026), I attended a webinar about, amongst others, ongoing proposed amendments and changes in the conveyancing practice landscape as well as the day-to-day realities of conveyancing practice. 

I have two main reasons why I attended the webinar, as follows: 
  • Professional Development: 
This is because as a CILEx member with two practice units where one of which is in conveyancing, it is essential to keep myself up to date with relevant and ongoing information about conveyancing. 
  • CPD Compliance: 
This entry documents the activity as part of my CILEx portfolio obligations where I am required to maintain in order to continue using my Associate (ACILEx) designation and retain my status on the CILEx Professional Paralegal Register.
 
SEMINAR OVERVIEW 
The webinar explored established main topics throughout where it was chaired and panelled by leading legal professionals. They are actively engaged in residential and commercial conveyancing, apart from serving as co-chairs of the Law Society's Conveyancing and Land Law Committee in England and Wales. 

THREE SUB TOPICS 
One of the main topics discussed was recent developments in the reform landscape. It covered several subtopics, and here are my takeaways alongside my own research. I have included the first two topics regarding an ongoing Bill and the professional discomfort of Conveyancers/Conveyancing Solicitors, but my primary focus is directly on off-plan high-rise property: 

1. The Commonhold and Leasehold Reform Bill. 

This is a major property-law reform for England and Wales where in June 2026 it introduced proposals toward transforming how flats and multi-unit buildings are owned and managed. This means that the Bill aims, amongst others:
  • to make the commonhold the default tenure for new flats in new buildings; 
  • to cap ground rents;
  • to abolish forfeiture and replacement; and 
  • to strengthen consumer rights. 
If you would like to know more about the Bill's relevant contents, go on to https://www.gov.uk/government/publications/draft-commonhold-and-leasehold-reform-bill.

 2. The HMRC Tax Advisor Registration Regime

This is where any regulated Conveyancers/Conveyancing Solicitors who submit Stamp Duty Land Tax (SDLT) returns or interact with HMRC on tax matters will be legally required to register as a tax adviser.

The registration window opens from 18 May 2026 and remains available for 3 months. Many regulated Conveyancers/Conveyancing Solicitors have expressed concerns where they do not feel comfortable becoming a tax adviser; typically, they refer complex tax matters to a specialist.

If you would like more guidance, go on to the following:

3. High- Rise Residential Complications under the Building Safety Act 2022 (BSA 2022) and the Higher-Risk Buildings (Descriptions and Supplementary Provisions) Regulations 2023 (the Regulations).

This is where transactions involving high-rise residential buildings - specifically those of 10 storeys or more present (at least 18 metres in height) present severe legal and practical challenges where it includes, amongst others:

  • complex building and fire safety regulations;
  • potential remediation liabilities; and
  • future expenses that are not covered by the Act.

That is why many regulated Conveyancers/Conveyancing Solicitors are reluctant to act in these transactions due to increasing complexity and liabilities (e.g., cladding compliance, risk assessment requirements, etc.), as well as associated professional risks.

On the other hand, some big law firms with a dedicated building and safety team are often able to handle it as they are in a better position where they can provide the specialist advice required. However, their fee levels reflect the complexity and risk profile of the transactions.

If you would like to read more guidance, go on to https://www.gov.uk/government/collections/guidance-on-the-criteria-for-being-a-higher-risk-building 


OFF-PLAN PROPERTY (FLATS) IN HIGH RISE BUILDINGS 
There is a rising number of high-rise residential developments where mostly marketed and sold to the public off-plan. These transactions are typically handled through agents of property developers where buyers are typically shown floor plans, layouts and even computer-generated images of finished units.

However, purchasing an off-plan flat in a 10- storey or more building (at least 18 metres in height) involves several administrative complexities and significant legal risks. This is because even with the involvement of the Building Safety Regulator (BSR) from the outset, buyers should still expect:
  • significantly higher legal fees; 
  • a much slower progression toward completion; and 
  • greater uncertainty due to the mandatory BSR Gateway approval process. 

If you are planning to buy an off-plan flat through an agent or with your legal representative where the high-rise building has not secured the mandatory Gateway 3 sign-off from the BSR, you must ensure that the following supplementary terms are incorporated into the Purchase Agreement (the contract for sale) before the exchange of contracts (the legal act): 
  • BSR Gateway 3 Conditionality: The contract must explicitly state that completion is conditional upon the developer obtaining the BSR Gateway 3 (Completion) Certificate. The sale should not be forced until the building is legally certified as safe for occupation. 
  • Mandatory Long-Stop Date: The contract must include a clear "Long-Stop Date" where it ensures that if Gateway 3 sign-off is not secured by a specific final deadline, you as a buyer must have an absolute right to rescind (e.g., right to cancel) the contract and receive a full refund of all your deposits. 
  • Specific Compensation Clause: This is where you as a buyer should be entitled to recover actual financial losses caused by completion delays (rather than relying on a generic/standard term that offers no recourse). The clause should cover costs such as temporary accommodation, storage, and fees related to extending or reapplying for a mortgage offer. 
  • BSA 2022 Documentation (in relation to mortgage lenders): Ensure the developer is contractually obligated to provide the following at the point of completion: 
    • Landlord’s Certificate – i.e., a document where it has information on who is responsible financially and for fixing safety defects in a building; 
    • Leaseholder Deed of Certificate – i.e., a legal document to prove that the property (flats) qualifies for Financial protections under BSA 2022; and 
    • all necessary "Golden Thread" digital safety information (where it relates to the Grenfell Tower Inquiry from 2017 to 2025) to satisfy lender requirements and future resale needs. 

The "golden threads" should include the following: 
  • original plans where it refers to exactly how the building was designed to be fire-safe; 
  • material logs (e.g., proof of what is inside the walls where it refers to a specific type of insulation and fire-stopping materials used); 
  • maintenance and inspection records (e.g., ongoing logs of fire alarm tests, lift maintenance, and structural inspections); and 
  • BSR Gateway approvals where it refers to copies of the Gateway 2 (Construction Approval) and Gateway 3 (Completion) certificates issued by BSR. 

BSR GATEWAY 3 (COMPLETION) CERTIFICATE 
A critical milestone in this transaction is the BSR Gateway 3 (Completion) certificate. This certificate is the final mandatory safety check overseen by the BSR. It is a measurement where it confirms that the building has been constructed exactly as planned with no risk of hidden fire or structural defects. Hence, once this is issued by the BSR can the building be legally occupied by residents. 

However, the "other side" of this safety measure is the risk of an indefinite delay. This is because the BSR is the sole authority for this sign-off; any backlog or safety concerns they find can delay the mandatory approval. Hence, without this certificate a buyer's move-in date may be pushed back repeatedly, leaving them unable to occupy the flat or finalise their mortgage. 

If you would like to read more about BSR approval, go on to 

The above information reflects my understanding of the three subtopics. It is provided for general information only and should not be taken as legal advice. If you believe that any part requires clarification or correction, please feel free to contact me. Hence, it should not be taken as legal advice.

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