Navigating Real Estate Law with Tatiana Svetlova: Insights, Challenges, and Future Trends
In the dynamic landscape of real estate law, professionals face unique challenges and opportunities across both residential and commercial sectors. This article features an in-depth discussion with Tatiana Svetlova, founder and managing partner at Svetlova LLP, who shares insights from her journey into real estate law, the evolving market dynamics, and the critical factors that contribute to successful transactions. With a focus on building relationships and adapting to changing regulations, Tatiana sheds light on the future of real estate law in an increasingly complex environment.
Tatiana Svetlova
Founder & Managing Partner - Svetlova LLP
Can you tell us about your journey into real estate law and what motivated you to specialise in both residential and commercial sectors?
I initially studied music, and after finishing a 14-night run of La Bohème at Holland Park Opera, I met and started dating a trainee solicitor. I cannot quite recall my thought process at the time, but I ended up switching into law and qualifying as a lawyer. My first legal job was with a wonderful old-fashioned law firm, Radcliffes. My office overlooked Big Ben and the Houses of Parliament, and it was the most welcoming place. My first experience began with the property department, where the Crown Estate was one of our clients. It was fascinating, and ever since, I have been drawn to the world of property. At Radcliffes, I worked with partners who were truly passionate and generous with their knowledge and time. Time stood still; there was no rushing, and there was an incredible family atmosphere.
I remember having hour-long conversations about the intricacies of property law and, of course, life with partners who had worked there for over 30 years. It was a wonderful place—I haven’t seen anything like it since! This first law firm informed my own style as a lawyer for years to come. Relationships and respect took centre stage. As a young person working in “real estate,” you see that property investment is the most rudimentary of all and has held true for centuries. I remember handling “oily” documents dating back to 1600 at a time when we still had “deeds,” and it was fascinating. I loved it, and my interest in real estate law has withstood the test of time.
As a solicitor who works closely with family offices, private companies, and entrepreneurs, what unique challenges do these clients face in today’s real estate market?
We have seen tremendous changes in the political landscape and tax treatment in the last five years. At Svetlova LLP, we work with many international clients; London has been a jurisdiction of choice for decades. Families came to settle and build their substantial real estate portfolios. The UK’s high tax rates and concerns about additional tax hikes are seen as the main reasons for the anticipated wealth exodus. We see that this is happening already as a result of abolishing the non-dom status.
The UK’s non-dom regime is a 200-year-old tax rule, which permitted people living in the UK (but who are domiciled elsewhere) to avoid paying tax on income and capital gains earned overseas for up to 15 years. As of 2023, an estimated 74,000 people enjoyed the status. Labour Government plans to abolish the status as of April 2025 pose a risk of the UK losing £8.4 billion of non-dom contributions and £150 million in fees. In addition, the UK’s capital gains tax and estate duty rates are among the highest in the world. Thus, we see that UK nationals are also making plans to settle in more attractive jurisdictions.
Your clients respect your depth of experience in investment and joint ventures. Can you share some key factors that contribute to successful partnerships in real estate transactions?
Joint ventures succeed when there is a balanced pool of competencies and mutual trust. Aligning interests, capabilities, and having robust contacts is as important as knowing who you are dealing with. It is critical to conduct due diligence on your potential JV partners, particularly if your “would-be partners” have prior friendly relationships and unequal resources (the latter is usually the key motivation for forming JVs). If one of your counterparts has a prior poor reputation, extra care needs to be taken.
Unfortunately, many joint ventures end up in litigation. We are currently in the middle of a high-profile litigation where a billionaire JV partner breached its obligations in a real estate development project. The billionaire has a history of “bad behaviour” in business dealings and a hunger for litigation. Thus, extra caution would have been prudent in considering whether to transact in the first place. As Warren Buffett famously said, “You can’t make a good deal with a bad person.” If someone can out-resource you in a dispute, you’d be well advised to think twice and consider the worst-case scenario before signing on the dotted line. However, the UK courts are still the best available forum in JV disputes to sort out any irregularities (albeit at great expense).
How do you approach deal-making, and what strategies do you employ to create opportunities for your clients?
Over the last 20 years, I have connected people, and, as in any deal-making, knowing your clients well and taking the time to speak to them in a non-transactional setting is key. Human relationships make the deals happen.
In your experience, what trends are currently shaping the residential and commercial real estate markets in London?
Over the last two decades, house prices have soared considerably in the UK, increasing by 44% nationally and by 74% in London since 2007. However, mortgage rates are rising, and this is putting downward pressure on house prices. We see that the market is currently saturated with property, so the pricing is slowly correcting, which is a natural cycle. We see that younger generations choose renting over owning—even when they can afford to buy.
What role do you believe technology is playing in the evolution of real estate law, and how are you adapting to these changes in your practice?
We have seen extremely efficient technological processes that have unburdened legal practice. For example, the automation of land registration and stamp duty land tax is wonderful; most contracts and leases can now be signed electronically, and paper production has decreased significantly compared to 20 years ago! When it comes to technological developments in real estate law, I think that we are still in its embryonic stages. Of course, all lawyers are familiar with precedent banks on various platforms, but I have not yet seen its workings in the AI sector. I am sure that soon it will be available for simple, “off-the-shelf” transactions. I do believe that complex and high-value deals are still the territory of great minds meeting personally and with great care. This cannot compete with AI or automation (at least for now).
Looking ahead, what do you foresee as the biggest opportunities and challenges for real estate professionals in London over the next few years?
In the real estate world, the rule always remains the same—location, location, location... and price! Good properties bought at the right price will perform in any economic climate. I am also seeing more and more families having professional services denied to them because of the political situation/labeling. In particular, clients with Russian heritage who have been in the UK for decades and hold British passports face discrimination (or selective solidarity) from professional service providers. This is partly due to the nature of the legislation—it is complex, changes frequently, and is not synchronised with the EU directive (which specifically protects individuals who are residents in the EU). They are often denied services because professionals are not clear on the reach and effect of the current rules.
The sanctions regime is effective and works well for those on the sanctions list; however, unwittingly, it penalises a huge segment of the population in the UK who do not “de facto” fall under this regime. At Svetlova LLP, we help individuals who can benefit from the correct interpretation of the law, and we address these issues where intervention is needed. We would also like to see a better balance in the landlord and tenant realm, where at the moment, tenants are extremely well protected, and landlords end up facing lengthy and expensive eviction processes where tenants misuse the legal process. This needs rebalancing, and we are working on lobbying for changes in the law.
About Tatiana Svetlova
Tatiana founded the firm in 2009 and is the managing partner. She provides advice on all aspects of residential and commercial real estate, acting for family offices, private companies, and entrepreneurs. Tatiana is highly regarded by her clients for her extensive experience in investment and joint ventures, as well as her ability to facilitate introductions and create deals.
Tatiana frequently offers commentary and expert opinions for BBC, ITV, Al Jazeera, and other publications.
Tatiana Svetlova
Founder & Managing Partner
Svetlova LLP
Email: tsvetlova@svetlovallp.com
Tel: +44 (0)203 375 904 0
www.svetlovallp.com
