Splitting a land title in 2 or mortgaging 2 properties on one land title.

benno180

Hi folks
i hope i am in the right group and looking for some advice.

I have built 2x houses on land that i own and would now like to borrow against the properties.
The problem is they are still on one land title and the mortgage company does not seem to like this. I have tried splitting the land but the Hm land registry said that i cannot do this unless i put one of the properties into a different name. (tax implications i think)

whats the best way of moving forward, would a commercial mortgage lender consider the properties as one entity?
I could put one of the properties into my business name but is there tax implications?
why can i not split the land and create 2x land titles?

Many thanks in advance if anyone can help
Ben

cii4ps

Are you trying to sell or let the other property and does it have a mortgage? I’ve read several articles about this subject, depending on your setup/wishes, a lawyer should be able to guide you through this. 

davidmcn

benno180 said:

 the Hm land registry said that i cannot do this unless i put one of the properties into a different name. (tax implications i think)

No, HMLR don't care about your tax, it's more because it's a legal nonsense to transfer property from yourself to yourself.

You haven't told us what you're planning to do with the houses or what sort of mortgage you've applied for, but I expect there will be options. There's no legal reason why lenders can't take a mortgage over part of a registered title, they just don't like doing so.

[Deleted User]

There are a few normal lenders who will mortgage the whole title with both properties on it.  They generally won't be high street lenders but smaller regional building societies usually or specialist lenders