Splitting title deeds/cost

jellybeantinker1

Evening!

Has anyone ever had title deeds split?

We are just wondering what a rough cost would be should anyone have an idea?

There would not be a mortgage on the property, which I assume helps to simplify things, and each property runs off the same water/heating system which for our purpose is not a problem.

Can anyone advise me please of a rough guide to basic costs for the splitting of title deeds and anything else that may need to be done alongside this?

Thank you in advance

da_rule

Once the transfer is registered you can apply to the Land Registry with form AP1 and a fee (£40 I believe) and a good quality plan showing what you want to do. They can then, at their discretion, split the title. If it causes them difficulties they don't have to do it.

Another option could be to buy the two parts separately and register them as separate transactions at the Land Registry which will generate two titles. You may have to pay more in terms of legal fees as it is technically two transactions. Also your seller may have to pay more in terms of legal fees so may refuse (unless you agree to pay the extra). The Land Registry fee is based on the value of land being registered so you'd need to assign a value to each part. And for the purposes of stamp duty it would be a linked transaction so stamp duty would be calculated on the entire value. It may also be liable for the higher rate of stamp duty as you will then own two properties.

Doing it after registration is probably the cheapest option, but the Land Registry can refuse to do it.

davidmcn

If your plan is to own them both and let them out as holiday lets, why do you want to split the title?

eddddy

As davidmcn says, from your post there isn't any obvious reason why you need to split the title.

But you will need planning consent for change of use, and then be liable for business rates etc.

Before committing to buy, it might be worth getting advice from the local planning authority about the likelihood of getting consent for change of use.

gembert83

It would probably be easier at this time to purchase the whole title, if you decide to sell one property later then it would just be a Transfer of Part (TP1) document that would have to be drafted. In the TP1 you would grant the necessary rights for the property being sold to use the services etc you could put in place covenants and you can also reserve rights over that plot for the benefit of the land you are retaining if they are needed.

jellybeantinker1

The actual reasons as to why we would want them separated are not something I would be discussing on the forum. This was a general question, hence I have deleted parts of my inital post.

davidmcn

jellybeantinker1 wrote: »

It is so we can purchase them at individual prices (due to money and where that money is coming from)

Are you sure that whoever is dictating this actually needs separate titles? It is a lot of hassle if it's just an accountancy issue. As above it's not merely drawing a red line between them but having to deal with the shared services in a way which makes sense. And you'd have to persuade the sellers to assist you, assuming you need all this in place before completion.

Craig75

I am looking to purchase an investment/development a few doors down from where I live.

Our offer has been accepted on a 9 bed HMO with 3 bungalows that has planning for 7 flats and 4 houses.

We thought the purchase would be classed as Commercial at 5% SDLT, however, we are now led to believe it is classed as residential 13% which kills the deal. The current 9 bed HMO and 3 bungalows are all on 1 title and in a company name. The vendor does not want to sell as an ongoing concern.
Freehold development & investment opportunity with planning permission for 7x flats and 4x houses

Current Use - Residential investment producing £85,318 per annum gross (A 9 Bed fully licenced HMO and 3x1 bed bungalows).

Planning permission to form 6x one bedroom & 1x studio flat (conversion) and 4x terraced houses !!!8232;(new build).

Could I split the title into 5 titles simultaneously on completion (1 title for the HMO and 4 titles for the 4 houses, or even 7 individual titles for the flats that will be built and 4 titles for the houses)? Would this qualify for Multiple dwelling Relief?

If splitting into 5 titles the SDLT would equate to £62k

If splitting to 11 titles the SDLT would equate to £42,493

As it stands the SDLT would be £125,750

What would the estimated cost be to split the titles?
I hope someone can help...