Splitting titles for block of garages and CGT

Bartoni79

Hi all,
i have 4 garages in a block (near Heathrow) under the same title and would like to spilt them onto separate titles to sell individually  - I’m assuming this will cost around £500 per garage? I just wanted a ballpark figure so I can compare with local solicitors. I’m looking at 2 options…

Option 1 - lets say I bought them for the equivalent of 10k each (40k in total) and then intend to sell for 20k each (80k in total). Do I have to pay capital gains if they're registered as commercial premises or residential premises? Ie is there a difference in rules between residential and commercial. (They're obviously not my primary residence).

Option 2 - if I decide to knock them down and create one big garage on the same footprint (with similar height), would I need planning? And would it be an issue if it’s seen to have a moderate chance of flooding as per the environment report?

thanks!

user1977

What's the purpose of splitting the title? Especially if you're also considering amalgamating them again to redevelop the site...

I don't think it's straightforward to do so unless you're transferring them to other parties.

Bartoni79

user1977 said:

What's the purpose of splitting the title? Especially if you're also considering amalgamating them again to redevelop the site...

I don't think it's straightforward to do so unless you're transferring them to other parties.

user1977 said:

What's the purpose of splitting the title? Especially if you're also considering amalgamating them again to redevelop the site...

I don't think it's straightforward to do so unless you're transferring them to other parties.

I’ve edited the initial post. I was looking at 2 options…

user1977

Ok, but you still haven't explained why you want to split the title. If you mean selling them individually, the title is split when the buyers register their title, you don't (normally) do it first.

Bartoni79

user1977 said:

Ok, but you still haven't explained why you want to split the title. If you mean selling them individually, the title is split when the buyers register their title, you don't (normally) do it first.

Sorry - yes option 1 to sell individually. 

eddddy

Bartoni79 said:

Hi all,
i have 4 garages in a block (near Heathrow) under the same title and would like to spilt them onto separate titles to sell individually 

Presumably you own the freehold. Are you planning to sell the garages as 4 separate freeholds? Or 4 separate leaseholds?

How would cars get to/from each of the 4 garages? 

For example,

• is there a single access/driveway that would be shared by the 4 owners?
• is there any forecourt area in front of the garages? If so, who would own the forecourt?
• can you split the forecourt into 4 parts, such that every garage owner can get to/from the road without crossing somebody else's part?

You might want to think carefully about how you deal with those types of issues. If you come up with a bad solution, it might put off buyers.

Bartoni79 said:

Option 2 - if I decide to knock them down and create one big garage on the same footprint (with similar height), would I need planning? And would it be an issue if it’s seen to have a moderate chance of flooding as per the environment report?

Presumably, the new building would look different from the outside - so you'd probably need planning consent.

And would the new building really just be a 'big garage' for keeping 4 cars? Or would you plan to use it for something else? If you plan to use it for something else, again you'd probably need planning consent for change of use.

Bartoni79

eddddy said:

Bartoni79 said:

Hi all,
i have 4 garages in a block (near Heathrow) under the same title and would like to spilt them onto separate titles to sell individually 

Presumably you own the freehold. Are you planning to sell the garages as 4 separate freeholds? Or 4 separate leaseholds?

How would cars get to/from each of the 4 garages? 

For example,

• is there a single access/driveway that would be shared by the 4 owners?
• is there any forecourt area in front of the garages? If so, who would own the forecourt?
• can you split the forecourt into 4 parts, such that every garage owner can get to/from the road without crossing somebody else's part?

You might want to think carefully about how you deal with those types of issues. If you come up with a bad solution, it might put off buyers.

Bartoni79 said:

Option 2 - if I decide to knock them down and create one big garage on the same footprint (with similar height), would I need planning? And would it be an issue if it’s seen to have a moderate chance of flooding as per the environment report?

Presumably, the new building would look different from the outside - so you'd probably need planning consent.

And would the new building really just be a 'big garage' for keeping 4 cars? Or would you plan to use it for something else? If you plan to use it for something else, again you'd probably need planning consent for change of use.

Regarding option 1. It would be freehold sales with covenant allowing access to garages across the forecourt of other garages - I would sell the garages but continue to own the forecourt land granting access. Is it better to sell the freehold or lease them? Financially I leaving them for say 50 years would be less financially beneficial.
cheers

silvercar

Who is going to be responsible for maintenance of the forecourt area?

Bartoni79

I would be but I’d put a clause saying no dumping of material in forecourt unless there are other suggestions? Thanks 

silvercar

Bartoni79 said:

I would be but I’d put a clause saying no dumping of material in forecourt unless there are other suggestions? Thanks 

Over the years the ground may need attention - surface break up, potholes, cleaning…..- you need to be able to charge that back to the garage owners.

Jonboy_1984

My parents own a garage in a detached block of nine with road access at one end and no way through at the other.

• Each garage has a Right of Way from the public road to their garage.
• Each garage owns the concrete forecourt in front of their garage as part of their title.
• Each garage has a covenant stating nothing can be left on the concrete forecourt area.
• Each garage has a covenant to keep the concrete forecourt and structure in good repair to the benefit of those with a right of way and adjoining garages.

Most of the neighbours park a car in front of their garage and use the garage for storage of chattels or another vehicle. Occasionally someone has a skip put on their concrete area but there haven’t been any issues from other garage owners blocking access in almost 45 years.

The only repair issue was when the dustcart mounted the first garages forecourt and it sank 9 inches, they took a while to repair it as they were trying to get the council to repair.

back to your actual questions on splitting title and CGT, less sure…