split the deeds

lizeratsi

has anyone done this - any advice is it hard? its for top floor flat ( ground floor commercial property) share drive and stuff....and I would need to create a new address etc.

G_M

More info needed.

Leaehold? Freehold? Owned by who? Splitting what/how? Mortgage?

I'll think of somemore relevant Qs in a bit, but what you've given us so far is meaningless.

lizeratsi

I own freehold of property its a flat above and commercial let property below. I want to keep the shop to rent out and sell the flat because its too much work, howevr I have no idea how much it will cost to split it all up, no mortgage though.

I also need to split water and possibly gas and leccy - its billed separately however but not sure if I need to do more to split it if selling..

G_M

You will need to create a lease for the flat, and then sell that. This could be for 99 years, 150 years, 999 years- whatever period you want.

When the lease is sold, the buyer will register it with the Land Registry, or you could register it initially and then the buyer would simply get the registered owner transferred from you to him.

Either way, you'll need a solicitor to draw up the lease, specifying what the flat can /cannot be used for, any conditions, who maintains what, whether there's a service charge, a grond rent, who insures the building, who pays for that insurance, and 101 other clauses.

It will also need a Plan drawn up showing the boundaries of the lease.

So much for legal side. For the practicalities, yes you'll need to get the utilities to install separate supplies and meters, as well as ensuring there's a proper access (NOT through the shop!).

I believe for a new address you have to get the Local Authority to create this, which then feeds through to Royal Mail, the Land Regsitry and the utilities etc.

On subject of Local Authority, might you need Planning Permission? Depends what is there now. You might also need Building Regulations certification for any work/alterations you do. Speak to the Planners and Building Control once you have your plans in place.

Bear in mind that many mortgage lenders are reluctant (or refuse) to lend on properties above commercial premises. So you might only be able to sell to a cash buyer. Who in turn will only be able to sell to another cash buyer. This will affect the price you can sell for.

lizeratsi

any idea of costs? sounds nasty and complicated however I am sure a solicitor who does this would cover all these basses....

Mojisola

Just sell the shop and the flat and put the money to good use!

Wobblydeb

It seems that the amount of hassle splitting the deeds would involve, you'd be better off tarting the flat up, and getting it rented out too.

Whilst the shop seems the easier of the two properties right now (with a tenant going in) this will not always be the case. What if the commercial tenant doesn't move in? Or their business doesn't take off, and they stop paying rent after Christmas?

If you're going to have the hassle of being a long distance landlord (either commercial or residential) then you might as well not bother faffing about selling the flat IMHO.

da_rule

Is the property currently registered at the Land Registry?