Land Title needs splitting into two.

[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

[cojak]

Not the right forum really (we are IT contractors mostly), but I thought it interesting enough to give the regulars a go at it. One or two might have been in this predicament.

[eek]

It is up to the owner to convince the Land Registry that things need to be split - there is no legal recourse available.

So the OPs screw up is in trying to do it himself - find a good solicitor who knows how to do such things and get them to do it. Be warned, it may be harder now than it would have been due to your amateur attempts

[NotAllThere]

Interesting question.

Did you do the application yourself? If yes, then maybe you need to talk to a solicitor to get the Land Registry to do what you want. Apparently, they'll only do it if they "deem it necessary". I've no idea what their criteria would be.

If you're just wanting to raise money, what difference does it make if your property comprises two houses instead of one. It still has value, it can still be sold if you default. Maybe contact a specialist mortgage broker?

[Paralytic]

Similar questions have been asked over here: New build house in garden, question on splitting deed - Party Wall & Property Legal Issues - BuildHub.org.uk

If that doesn't help - post a new thread - that lot are really knowledgeable about this stuff.

It's generally very difficult to split a land title and have the same person keep both. There are also some very important things you have to consider as to when best to split/not split that will impact potential future taxes.

[filthy1980]

i know someone who did this but on a commercial property, i think it can be done but it's best done when transferring ownership,

in the case i know of a property was purchased via an SPV then the deeds split into sub-SPVs then the sales registered with the Land Registry

think you need an experienced solicitor and i'm not sure of the tax implications of the above approach

[courtg9000]

This sort of thing happens every week - its not a biggie.
You are dealing with the land registry so need to do it right!
A specialist property solicitor or a specialist conveyancing solicitor NOT a conveyancer two different things should handle the title split to two different properties for you. Reasonable cost should be about £1,500.
A good few mates of mine have had to do this in the past (they are professional property people).
Let me know if you want me to ask them the names of decent chaps and chapesses.

[courtg9000]

Interesting question.

If you're just wanting to raise money, what difference does it make if your property comprises two houses instead of one. It still has value, it can still be sold if you default. Maybe contact a specialist mortgage broker?

Don't ask me why but joe public only wants one house. They never seem to want to buy two!

[courtg9000]

i know someone who did this but on a commercial property, i think it can be done but it's best done when transferring ownership,

in the case i know of a property was purchased via an SPV then the deeds split into sub-SPVs then the sales registered with the Land Registry

think you need an experienced solicitor and i'm not sure of the tax implications of the above approach

This can be done but as far I am aware you need to tread carefully with regards to the lovely cherubs at HMRC.

[NotAllThere]

Don't ask me why but joe public only wants one house. They never seem to want to buy two!

Buncha weirdos.