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House purchase, two parcels of land
OSCO
Posts: 15 Forumite
Hello
We're currently purchasing our first home.
We've had an email from our solicitors which includes a plan of the boundaries to check they match up with what we believe them to be before they conduct searches.
It threw me somewhat because it said we were purchasing two parcels of land.
The two attachments they sent shows that the last ~3 meters of the garden is a separate parcel than the rest of the land containing the house and rest of the garden (there is a garage which separates the two parcels for half the width but you wouldn't consider them separate if viewing).
Taken as a whole the two parcels make up the boundaries we're expecting, but I didn't know if it was unusual for it to be split into two parcels, and why it should be?
It doesn't look like the parcel at the back is a later addition for example, as the back of it is inline with the back of the neighboring properties, so just seemed a bit odd.
I've asked the solicitor, but just thought I'd ask on here.
We're first time buyers so a bit new to this.
Thanks
We're currently purchasing our first home.
We've had an email from our solicitors which includes a plan of the boundaries to check they match up with what we believe them to be before they conduct searches.
It threw me somewhat because it said we were purchasing two parcels of land.
The two attachments they sent shows that the last ~3 meters of the garden is a separate parcel than the rest of the land containing the house and rest of the garden (there is a garage which separates the two parcels for half the width but you wouldn't consider them separate if viewing).
Taken as a whole the two parcels make up the boundaries we're expecting, but I didn't know if it was unusual for it to be split into two parcels, and why it should be?
It doesn't look like the parcel at the back is a later addition for example, as the back of it is inline with the back of the neighboring properties, so just seemed a bit odd.
I've asked the solicitor, but just thought I'd ask on here.
We're first time buyers so a bit new to this.
Thanks
0
Comments
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It is probable the seperate parcel was bought at a different time. e.g a friend of mine has a garden like this. there used to be a branch railway line along the back of the row of houses, but when that closed, the whole row were offered the chance to buy the strip of railway behind their gardens.
It could have been a previous access road or who know what.
I believe it worked to their advantage as the extra parcel of land was allocated a small nominal value and was below the theeshold for stamp duty, and the price "paid" for the house and main but was allocated a slightly lower value than the purchase price so they paid a little less stamp duty on that.0 -
I'm rather surprised at this. I thought linked transactions like this were flagged up and stamp duty should be charged on the combined value.I believe it worked to their advantage as the extra parcel of land was allocated a small nominal value and was below the theshold for stamp duty, and the price "paid" for the house and main but was allocated a slightly lower value than the purchase price so they paid a little less stamp duty on that.0 -
I'm rather surprised at this. I thought linked transactions like this were flagged up and stamp duty should be charged on the combined value.
I think the rules were tightened up on this in 2003 - so maybe ProDave's friend bought before then.
But as you say, that wouldn't work now.0 -
Yes the transaction I refered to was before 2003. I didn't realise the rules had changed, so no financial advantage now of a split title and just a bit more paperwork.I think the rules were tightened up on this in 2003 - so maybe ProDave's friend bought before then.
But as you say, that wouldn't work now.0 -
Very common.It is probable the seperate parcel was bought at a different time. e.g a friend of mine has a garden like this. there used to be a branch railway line along the back of the row of houses, but when that closed, the whole row were offered the chance to buy the strip of railway behind their gardens.
It could have been a previous access road or who know what.
I believe it worked to their advantage as the extra parcel of land was allocated a small nominal value and was below the theeshold for stamp duty, and the price "paid" for the house and main but was allocated a slightly lower value than the purchase price so they paid a little less stamp duty on that.
Just make sure that the combined Title Plans encompass the whole of the area you are expecting to own.
Also make sure you read both Title documents for any covenants etc.
You could ask your solicitor to merge the two titles into one when you register the purchase, or could leave them as two seperate Titles.0
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