Splitting deeds on a property and land with mortgage

Heathfield51

Hi
I’ve searched threads but can’t find a similar issue. Trying to sell a property with six acres and have a had an offer accepted on place we want to move to. I have a buyer without horses who can’t afford whole plot and doesn’t really want whole plot. Equally I’m happy to keep a few acres. Geographically, the plot could be split into two plots, the house with three acres and a three acre field, both with separate road access. Currently the whole plot has a mortgage at about 60% LTV and is just out of deal. Just wondering what my options are and the best way of getting this sorted, if possible.

Many thanks. 

greatcrested

Either

1) split the property and then sell the title to the property and keep title to the land. This will

a) require consent of your lender (though with 60% LTV that'squite likely following a new Valuation by them), and

b) take time - lender consent, survey/new Plans, Land Registry submissions - all slowed by COVID-19, or

2) prepare a contract of sale for the property, clearly identifying the extent of the property being sold and sell useing form TP1 (Transfer of Part) instead of TR1 (Tranfer of Whole). The buyer then registers the part of the original title he has bought (new Title number) whilst you retain the other part under the original title number. Your mortgage is paid off by the sale.

Heathfield51

Thanks so much. Option 2 sounds like a no brainer. Is there a catch?

AdrianC

Heathfield51 said:

Thanks so much. Option 2 sounds like a no brainer. Is there a catch?

Slightly higher legal fees - but you'd have to pay them anyway to split the titles.

The buyer's solicitor may also raise eyebrows a bit, because they don't have anything with LR to actually work directly to. But they shouldn't find it too hard...