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Lawrence Stephens Secures Prime Chelsea Residential Lease for Sandersons London

Posted on: August 14th, 2025 by Ella Darnell

Lawrence Stephens is delighted to have acted for Sandersons London in securing a new lease of a residential building on Draycott Place, Chelsea.

With support from our real estate team, Sandersons have taken on a 10-year lease of the entire building, comprising of 10 units to be refurbished into high-class apartments, in a prime residential location in Chelsea. The lease was completed swiftly within just two weeks of instruction, ensuring a timely and smooth transaction process for Sandersons.

This transaction marks a significant milestone for Sandersons, as the Chelsea letting is the first step in their ambitious plans for building a portfolio of serviced apartment offerings. Lawrence Stephens looks forward to supporting them and continuing a strong relationship as a trusted legal adviser as they expand their property portfolio.

The transaction was completed by Chris Cagney, Director in the Commercial Real Estate team.

Chris commented:

“I am delighted to have assisted our client Sandersons London with this lease in a beautiful location and to play a part in the expansion of the business into the service apartment sector.”

 Matthew Manowski, CEO of Sandersons London added:

“This Chelsea building is more than just our newest lease – it’s the cornerstone of a bold new chapter for Sandersons London. In taking on this prime Draycott Place address, we’re not only expanding into one of the city’s most desirable postcodes, but setting the stage for a curated collection of serviced apartments that redefine what high-class city living can be. Lawrence Stephens have been exceptional partners in making this happen in record time, and we can’t wait to bring our vision for these homes to life!”

You can read more about our real estate team and their services here.

US buyers and the UK’s prime property market – how to avoid tax pitfalls

Posted on: August 12th, 2025 by Ella Darnell

As growing numbers of American investors target the UK’s prime real estate, Directors Alexa Kordowicz and Leigh Sayliss explore what’s fuelling this transatlantic property boom and discuss the key tax considerations US buyers must navigate to protect their investments and ensure long-term financial efficiency.

Alexa and Leigh’s article was published in IFA Magazine, 11 August 2025, and FT Adviser, 18 August 2025.

With more Americans than ever making the move to the UK and buying prime property, advisers need to be aware of the tax pitfalls their clients could face, and how to help them avoid costly mistakes.

US migration to the UK reaches record levels

The Americans are coming. In recent years, a growing number of Americans have been crossing the Atlantic to make the United Kingdom their home. While celebrity immigrants such as Ellen DeGeneres have made the headlines, the UK is now attracting thousands of Americans every year.

Many are here to stay. The Home Office says that over 6,600 Americans applied for UK citizenship in the year ending March 2025 – up 30% on the previous year. The first quarter of 2025 alone saw 1,931 applications, the highest quarterly figure in two decades.

Prime property hotspots are attracting wealthy US buyers

There has been a notable surge in well-heeled American buyers seeking properties in London, particularly in prime central London areas such as Mayfair, Marylebone, Chelsea and Belgravia. Americans are now reported to be the main non-British buyers of prime London real estate. Outside of London, desirable rural areas such as the Cotswolds are in vogue.

Lifestyle, safety and cultural similarities are key draws

This trend appears to be driven by a mix of political disillusionment, lifestyle aspirations and the straightforward, practical advantages of life in the UK, from safer streets to a lower cost of living, cheaper private schools and free healthcare. Another key attraction is that, as a culturally similar English-speaking nation, adjusting to life to the UK tends to be relatively easy for Americans.

Better work-life balance is a major attraction

The UK is an attractive destination for those Americans seeking a better quality of life. The promise of a better work-life balance also appears to be a significant draw. In the UK, workers are entitled to more annual leave, paid maternity leave of up to 39 weeks and lower working hours, for instance. From wealthy celebrities to everyday professionals, the UK’s allure is now reshaping migration patterns, which historically tended to be in the other direction.

Political stability and safer education are influencing moves

In 2025, MAK25 London Limited analysed several key drivers prompting Americans to relocate to London, and found perceived political instability in the US to be a significant factor. The UK’s safer educational environment was found to be a notable factor, which perhaps few Britons consider. The UK has had no school shootings since 1996, compared to 39 in the US in 2024 alone, and six in 2025. This is an understandable anxiety for American parents. Lower crime, along with free maternity care and generous maternity leave certainly makes the UK an attractive destination for young American families. Personal factors, such as family ties or job opportunities, also play a role according to MAK25, which also emphasises the importance of obtaining bespoke visa advice.

Currency strength and property market trends are boosting appeal

The current strength of the US dollar against the pound is increasingly making property purchases attractive for Americans, as is the softening UK property market. Post pandemic lifestyle changes and more flexible working arrangements also mean that it’s possible for Americans to consider a second home abroad, even while continuing to work in the US. London and the UK still have global appeal and cultural cachet, and the UK’s reputation is that of a safe haven for international buyers to invest their wealth.

Engaging advisers early is vital for avoiding tax traps

It is vital for Americans considering a move to the UK to engage US and UK tax qualified legal advisors at the outset – ideally prior to making an offer on any property. It’s essential to consider the possible ownership structures carefully, and to understand all the tax implications. Although thorny tax issues can arise, especially regarding inheritance tax, there are ways to mitigate these if they are considered before buying a property.

Understanding the key UK tax implications

Advisers of Americans moving to the UK will need to understand how the UK’s tax regime may impact them and their families, particularly if they are owners of second homes. Stamp Duty Land Tax (SDLT) surcharges for people buying a second home, and for non-UK residents, may well apply. This means that some canny buyers are looking to invest in areas in the UK with strong growth potential, to help offset the higher initial purchase costs.

Properties for personal use are generally bought in personal names or through trust arrangements, as there are further SDLT implications and the Annual Tax on Enveloped Dwellings (ATED) if the client decides to purchase through a company – unless the property is being bought solely for investment and the owner does not intend to use it personally.

Capital Gains Tax (CGT) rates in the UK may surprise Americans, and this is payable on the gain made upon the eventual property sales. It may be payable in the US and UK, but tax treaties avoid double taxation.

Potential inheritance tax at 40% on UK assets is another issue to be carefully considered. Although this should be offset against taxes paid in US, the UK threshold for paying inheritance tax is significantly lower than that for US Estate Duty. It is also worth remembering that there is no inheritance tax on transfers between spouses or civil partners.

Preparing for a smooth property purchase

American clients going ahead with a purchase should ensure that they have all the necessary documentation in order well in advance to ensure a smooth purchase. This may include proof and source of funds, a mortgage offer in principle, and insurance there will be necessary financing and sufficient tax and financial planning to ensure the purchase will be viable. Their US and UK advisors may need to collaborate closely to ensure the best strategy.

A growing transatlantic migration trend

As the political and social divides deepen in the US, the UK’s blend of cultural heritage, personal safety, and its easy access to continental Europe continues to attract Americans. Though US citizens will have to clear a variety of legal hurdles before making the move, this transatlantic migration shows no signs of slowing down just yet.

If you’re looking to invest in UK real estate, you can get in touch with Alexa here.

Chambers HNW 2025: Lawrence Stephens Residential Real Estate Team Recognized, Goli-Michelle Banan Ranked Band 3

Posted on: July 24th, 2025 by Alanah Lenten

We are delighted to announce that Goli-Michelle Banan, Head of Residential Real Estate at Lawrence Stephens, has been promoted from Band 4 to Band 3 in the latest Chambers High Net Worth 2025 guide. Her individual rise is matched by an exciting development for the wider Residential Real Estate team, which has secured its first-ever ranking, entering directly at Band 4 in the Real Estate: High Value Residential category.

This recognition places us firmly in competition with some of the capital’s larger and most established firms, including Howard Kennedy and Edwin Coe, underscoring the strength, calibre and growing market presence of our Residential Real Estate team.

With more than a decade’s experience in the prime and core London residential market, Goli-Michelle is a trusted adviser to HNW and UHNW individuals, developers, investors, and trust administrators across the UK and internationally. Known for her commercial insight and unrelenting attention to detail, she is also recognised in the Spear’s 500 as one of the UK’s top recommended property lawyers.

This year’s Chambers HNW guide includes glowing endorsements from clients and peers, who describe her as:

  • “Exceptionally efficient and professional. She has remarkable attention to detail and a thorough approach.”
  • “Incredibly helpful and very detailed… a great solicitor that I’ve had the pleasure of working with.”
  • “Positive, thorough and professional.”

Our Residential Real Estate practice advises on a wide range of complex and high-value transactions, including property sales and acquisitions, leasehold enfranchisement, development site purchases, refinancing, and Islamic finance. Clients range from private investors and family offices to corporates and developers, all of whom value our commercial, solution-driven approach and high-quality service.

Our team’s first-time ranking also reflects the exceptional feedback received this year:

  • “Lawrence Stephens is committed to its clients and provides excellent legal advice, offering solutions and updating all parties involved in an extremely timely manner.
  • “The team is easy to work with, personable, client-centric, pragmatic and collaborative.”

We’re proud that Chambers HNW 2025 has acknowledged the expertise that defines our real estate offering. Congratulations to Goli-Michelle and the entire Residential Real Estate team on this well-earned recognition, a major step forward in our continued growth within the HNW space.

Lawrence Stephens Expands Residential Real Estate practice with Senior Hire

Posted on: May 12th, 2025 by Natasha Cox

Lawrence Stephens is delighted to announce the appointment of Alexa Kordowicz as a Director in the firm’s growing Residential Real Estate team.

Alexa joins from Child & Child, where she developed a leading reputation for advising on high-value residential property transactions. Alexa has built a wide-ranging practice acting for individuals, companies and both UK and international private banks. She brings to the firm a wealth of experience in managing complex and high-net-worth property matters, with a particular focus on delivering a seamless client experience through strong relationships and a commercially minded approach.

Alexa looks forward to working closely with teams such as Private Wealth to coordinate multi-faceted transactions involving extensive property portfolios.

Speaking on her appointment, Alexa commented: “I’m thrilled to be joining the highly regarded team at Lawrence Stephens. The firm’s client-first ethos and collaborative culture are an excellent fit for my approach to legal practice. I look forward to continuing to support clients in the UK and internationally on their residential property matters, and to growing the practice together with the wider team.”

Goli-Michelle Banan, Head of Residential Real Estate, added: “Alexa is an exceptional addition to our team. Her experience in high-value residential transactions, coupled with her commitment to client service, aligns perfectly with our focus on delivering a tailored and positive experience. We’re excited to welcome her to Lawrence Stephens as we continue to expand the scope and strength of our Residential Real Estate offering.”

Details of our Residential Real Estate services can be found here

Lawrence Stephens Directors named in Spears’ Property Indices 2025

Posted on: March 20th, 2025 by Natasha Cox

Whether handling commercial properties, mixed-use developments or the most exclusive super-prime residences, the very best property lawyers are trusted by HNW clients to provide expert guidance throughout the often lengthy, intricate, and high-stakes process of buying, building, and selling real estate.

We are delighted to announce that Stephen Messias, Director in our Commercial Real Estate team, and Goli-Michelle Banan, Head of Residential Real Estate, have been named top property lawyers in Spears’ Property Indices 2025.

“The advisers selected for the Spear’s Property Lawyers Index 2025 demonstrate not only an extraordinary depth of knowledge but also an ability to navigate the evolving landscape of property law with skill and precision.”

To read the full list, click here

 

Government Abolishes Two-Year Rule in Leasehold Reform Act 2024

Posted on: February 6th, 2025 by Hugh Dineen-Lees

Effective from 31st January 2025, the Government has enacted a major change under the Leasehold and Freehold Reform Act 2024 (LAFRA), which abolishes the two-year ownership rule. This is the first part of the LAFRA to be implemented.

Following this change, Leaseholders will no longer need to wait two years to commence enfranchisement or lease extension processes.

This will have a particular impact on lease extensions or enfranchisement where the flat is subject to an impending sale. Given that new owners will no longer have to wait 2 years to extend their lease or commence enfranchisement proceedings, this will avoid the need for the existing owner to begin this process prior to the sale, if it is required, making the sale process more efficient.

Housing Minister Matthew Pennycook has emphasised this reform marks the initial step towards a comprehensive overhaul of the leasehold system, indicating that efforts will continue to implement the measures outlined in the Leasehold and Freehold Reform Act.

The implementation of further reforms set out in the LAFRA are planned for Spring.

The updated legislation can be seen here – Leasehold and Freehold Reform Act 2024

Practice guide 27 has now also been updated to reflect this:  Practice guide 27: the leasehold reform legislation – GOV.UK

Residential Real Estate market update: navigating the current UK housing market

Posted on: August 9th, 2024 by Yvonne Uzoka

The Bank of England (the ‘BoE’) Monetary Policy Committee’s recent decision to cut interest rates to 5% and the anticipated government taxation regime announcement in October 2024 are likely to affect both the wider UK housing and Prime Central London (‘PCL’) markets. In this market update our Residential Real Estate team take a look at the possible effects.

Impact on Swap Rates and the UK housing market

Let’s dive in. The UK housing market continues to show robust price growth. Earlier analysts’ predictions of an expected 1.8% rise in housing prices in July 2024, prices have been surpassed by actual increases of 2.1%. This unexpected growth reflects strong pent-up demand as borrowing conditions improve. In anticipation of the BoE’s interest rate cuts, several mortgage lenders, such as HSBC, NatWest and Nationwide, have recently reduced their mortgage rates boosting approvals to around 60,000 per month.

Following the BoE’s decision, five-year swap rates fell to 3.6%, the lowest since February 2024. This is under the crucial 4% threshold and experts are predicting rates will stabilise around 3.25% above pre-pandemic levels.

Why does this matter? The current trends suggest that lenders expect long-term interest rate reductions, making 5 to 10 year fixed mortgages the most cost-effective options. This indicates that lenders are keen to secure borrowers at these lower rates, which are predicted to drop over the next few years – a positive signal for the housing market.

Overall, there is cautious optimism. While house prices are rising steadily, borrowing conditions are improving and no dramatic drops in rates are expected.

The contrasting trends in PCL: signs of recovery?

In the wake of 20+ months of economic fluctuations and high interest rates, the UK property market has shown a mix of different trends. In the broader market Q2 of 2024 saw a 22% increase over the previous quarter for properties valued between £3-15 million. However, during the same time period, PCL prices were falling, with valuations dipping slightly. The trend of increasing average discounts has continued for the seventh consecutive month after three years of declines. This suggests that PCL may be influenced by other factors and the recent interest rate reductions may have a limited effect.

Despite the ratio of available stock to monthly sales at 25:3 in Q1,2024 to 22:6 in Q2, 2024, supply remains high, with an above long-term average of 20. Consequently, sellers must maintain realistic expectations regarding property prices, especially as the market broadens and buyers are presented with more options.

Key takeaway:

  • Demand is rising, but price drops in PCL are likely to continue as supply remains high.

The Government’s taxation updates and potential impacts

Lastly, we address the central government’s upcoming taxation regime, due to be announced in October, and its potential impact on the housing market. The Labour Government’s mandate is pro-growth, with an expectation of coming into effect by 6 April 2025. However, the practical implementation remains uncertain.

They aim to boost public service investment and stimulate the economy without raising income tax, national insurance, or corporation tax, which constitute about 80% of tax revenue. Proposed changes include:

  • Taxation of non-UK domiciled individuals – individuals with 10 consecutive years of non-residence will be exempt on their foreign income and gains received in the first 4 years of residence in the UK. It is irrelevant whether the income and gains are remitted to the UK;
  • Introduction of VAT on private school fees;
  • Abolition of furnished holiday lets (FHL) regime;
  • Adjustments to taxation on carried interest; and
  • Changes to transfer of assets abroad.

It is unclear if the government can achieve growth with these mechanisms or if they will backtrack on promises. As such, borrowers, lenders, and property owners should stay vigilant in the coming months.

At Lawrence Stephens we are dedicated to helping our clients navigate these changes. If you have any questions or need assistance, please do not hesitate to contact our specialised Residential Real Estate team.

Abtin Yeganeh comments on landlord-imposed work from home bans in The Independent

Posted on: July 8th, 2024 by Natasha Cox

Senior Associate, Abtin Yeganeh, comments on landlords banning their tenants from working from home, as well as tenants’ protections in this area, in The Independent.

Abtin’s comments were published in The Independent, 07 July 2024.

“As a general rule, a landlord cannot stop a tenant from working from home as it would interfere with a tenant’s statutory right to quiet enjoyment of their property. The position is somewhat more complicated where a tenant seeks to run a business from their rental property. With that said, whilst landlords can seek to exclude a tenant’s right to work from home, The Small Business Enterprise and Employment Act 2015 (subject to several exclusions) provides that landlords cannot unreasonably refuse a tenant’s request to do so.”  

Landlord and tenant works – Construction Industry Scheme payments now made simpler

Posted on: June 13th, 2024 by Natasha Cox

In brief:

Regulations were introduced in April of this year which removed the uncertainty and complexity on which payments made by commercial landlords to tenants are covered by the Construction Industry Scheme (CIS). As a result,  the majority of such payments will now fall outside the scope of the CIS and the requirement for deductions as advance payments towards a sub-contractor’s tax and National insurance to HMRC.

The pre-April 2024 rules created a cumbersome legal and administrative obligation and the removal of these compliance burdens must be welcomed.

Legislation

The Income Tax (Construction Industry Scheme) (Amendment) Regulations 2024 (SI 2024/308)  introduced in April 2024 added a new Regulation 20A to the main CIS regulations which specify that payments made by a landlord to a tenant for construction operations in connection with a lease or agreement for lease are not contract payments and are, therefore, outside the scope of the CIS.

To fall within the scope of this exclusion, payments must meet the following conditions:

  • The payment is made by or on behalf of a landlord;
  • The payment is received by a tenant or prospective tenant (tenants include sub-tenants);
  • The payment is for construction operations agreed in connection with a lease or agreement for lease;
  • The tenant that occupies or will occupy the property will carry out the construction works themselves or contract with a third party to undertake the work; and
  • The payment must be for construction operations relating to works intended primarily for the benefit and use of the tenant that occupies or will occupy the property under the lease.

The definition of ‘landlord’ includes a person with the legal or beneficial ownership of the property, who granted the lease or who will grant the lease.

What does this mean?

Under the pre-April 2024 rules, and prior to entering into any agreement relevant to the construction operations, both the landlord and tenant were required to take legal and taxation advice in order to jointly agree and document that any payments from the landlord to the tenant regarding such construction works either fell within the exclusion for ‘reverse premiums’ in Regulation 20 of the main CIS regulations so that they fell outside the scope of the CIS – or they did not and deductions would need to be made. 

Although contributions made by a landlord towards the tenant’s own fit out works were easier to assess, it was far more difficult where a contribution was being made towards the tenant undertaking Category A fit out works. This led to some landlords being more ‘careful’ in requiring the operation of the CIS on such contributions. Tenants were being asked to take on the added cost of CIS deductions –  as well as the added administrative and cash flow burdens of having to reclaim the amounts deducted. 

The new exclusion under Regulation 20A should lead to most payments by landlords to tenants (or prospective tenants) for construction operations being defined as outside of the scope of the CIS. However,, the implications of Regulation 20A do need to be fully understood.  Most notably,is the requirement that the landlord’s payments must be for construction works intended primarily for the benefit and use of the tenant. This means that any payment which relates to works outside the property occupied by the tenant is likely to fall outside the new exclusion and will therefore remain within the scope of the CIS.

As a reminder…

The new regulations do not affect the application of the CIS to payments by tenants to landlords for construction operations. Take an example where where the landlord has agreed to undertake the tenant’s own fit out works., While these payments will continue to usually fall outside the scope of the CIS, if the tenant will be sub-letting part or the whole of the property or they are registered with HMRC as a so-called ‘contractor’, the CIS deductions would apply in accordance with  Regulation 24 of the main CIS regulations for payments in respect of property used for the purposes of the business of the tenant or another company in the same group.

If you need any advice on the Construction Industry Scheme or any other aspects of construction law, please contact our team of experts Anne Wright and Tom Pemberton.

 

Stephen Messias and Goli-Michelle Banan ranked in Spear’s Property Index 2024

Posted on: March 13th, 2024 by Maverick Freedlander

We are delighted to share that Director and Head of Residential Real Estate Goli-Michelle Banan and Director in our Commercial Real Estate team and Co-Founder of Lawrence Stephens Stephen Messias have been ranked in the Spear’s Property Advisers’ Index 2024 as Top Recommended Property Lawyers.

The Spear’s Property Advisers’ index recognises the best advisers to buy, sell, manage and invest in super-prime property in London, the UK and abroad. 

These rankings are decided on the basis of peer nominations, client feedback, interviews, data supplied by firms, and extensive research by Spear’s.

Click here to see the full rankings.

Goli-Michelle Banan comments on boundary disputes in The Telegraph

Posted on: January 30th, 2024 by Maverick Freedlander

Following JK Rowling’s recent dispute with neighbours over hedge maintenance, Director and Head of Residential Real Estate Goli-Michelle Banan comments on resolving boundary issues.

Goli-Michelle’s comments were published in The Telegraph, 26 January 2024, and can be found here.

“We had one where the neighbour of a client built a fence that was much higher than the one before. They said it was for privacy reasons but our client argued that it was not just unsightly, it also blocked the light coming into their garden.

“It’s more common in cases where neighbours have a shared pathway, larger properties or blurred boundary lines.”