Splitting title deeds

chriswild24

I'm hoping to buy a 20 acre farm comprising of detached farmhouse and barns for conversion (stp). To finance the purchase I will use a bridging loan + savings. The exit strategy for the bridging loan is the sale of ther farmhouse with a couple of acres. Then, after planning permission is granted I will convert a barn to live in and keep the rest of the acreage. I will have no mortgage.
Does anyone have any experience in this field, particularly with what's involved in splitting the title/deeds of the farm? How long I should expect the split to take and what I should expect to pay solicitors for the work involved. Will there be tax to pay after selling the farm?

greatcrested

Splitting the Title is not complex. Use Land Registry form TP1.

You will need two Plans showing the extent of the property being sold, for which a new LR Title and Plan will be created, and the amendment to the registered Plan of the registered Title being retained.

A surveyor would be advisable to draw these up.

I'd probably use a solicitor to submit to the LR, but you could DIY.

As no mortage, no consent needed.

Timescale depends a) how long it takes you to get the Plans drafted and the forms completed, and b) what the Land Registry backlog and turn-around timescale is. Ask on the Land Registry thread.

I suspect there will be Capital Gains Tax liability as you are selling a property that is not your main residence.

Falafels

I've had experience of selling under a Transfer of Part - in my case, selling my house and garden whilst retaining an area of land which was part of the title. In my case, it was very easy to determine which bit was which because the area of land is over the other side of next door, whilst the house and garden were clearly 'an item' - but I gather you may need a surveyor to draw up the boundaries of the area for sale if it's less clear. 

In fact, I asked the Land Registry rep on here about splitting the title, and she told me that there was no need to do this as such; once you've sold the designated area under a Transfer of Part, it will gain a new title number and you will retain the rest of the title, so the split will happen quite naturally. 

The cost for conveyancing was roughly double what it would have been had it just been a regular sale, but my circumstances were such that it was worth it to me. The transaction took the same amount of time as any other house sale at the moment. However, there has been a huge backlog in registering these transfers at the Land Registry for years; a solicitor told me that one of their clients had been waiting for nearly a year - and that was before COVID. They can be expedited if there's an associated sale, but I doubt that would apply in your case. 

As for the rest of your queries - I really couldn't say, and you need professional advice about these.