Title Splitting

The process of ‘splitting’ a title involves dividing a single interest in land into multiple interests, each with its own set of rights, interests and obligations. Whether you’re interested in splitting the title on a property for investment reasons or considering splitting the title on a mortgaged property to streamline ownership, understanding the legal nuances is crucial. 

The complexities and cost of splitting a title to your property, and the procedural intricacies can often make title splitting seem like an overwhelming experience. But with JMW’s expertise in splitting a title and related legal fields, we offer comprehensive services to create a hassle-free process and an investment well made.

Contact our title splitting solicitors for help and to ensure a smooth, efficient process. Call us on 0345 872 6666 or fill out our online enquiry form and we will contact you as soon as we can.

How JMW can help

Our services are comprehensive and aimed at providing a seamless experience from start to finish. We begin with an initial consultation, where we assess the viability of splitting title on your property, whether it’s mortgaged or not. This is followed by a thorough feasibility study to examine the cost of splitting title deeds and the associated legal requirements. 

A key aspect that property owners often overlook is the need for meticulous drafting of the key documentation as part of the process. Documents need to be prepared, verified and registered with the utmost care, as these will be critical in establishing the legality of the newly separated titles. Our team ensures that every document prepared or reviewed during the process meets the highest standards of legal accuracy.

All of this is executed by our experienced solicitors who are well-versed in every aspect of title splitting and conveyancing.

Our commitment to your successful property venture doesn’t end with the completion of the title-splitting process. We offer ongoing legal support aimed at ensuring your property, now divided into multiple titles, continues to be a financially rewarding investment. Whether it’s advising on tenant agreements for the newly created properties or updating you on changes in property law that could affect your holdings, our team will be on hand to assist.

What is title splitting?

The phrase ‘title splitting’ can often be misconstrued as simply calving a registered title into more than one part. While this is correct for some transactions, splitting a title can also involve the creation of multiple titles from one individual parcel of property. For example, the creation of apartment leases from a freehold block of apartments. By creating a leasehold interest for each apartment, they can then be sold or leased independently, providing property owners with greater security and value for their asset.

The capacity to generate rental income is often a motivating factor for title splitting, especially for large commercial and residential properties. However, it is not the only factor. In some cases, a title split is required by a mortgage lender on a refinance to enhance the security and value of the asset being charged. Our legal services extend to advising on optimal structures for achieving your objectives on a transaction involving the splitting of a title.

What legal considerations do I need to make when splitting a title?

A key consideration is ensuring that the required legal process in achieving the creation of new titles is properly adhered to. For example, to create a new title effectively, you have to grant another person or entity a new interest in land. In other words, you cannot grant an interest in land to yourself. You will therefore need to think about who you would grant the interest to.

Important considerations will need to be given to:

• The tax implications of granting another person or entity an interest in land; and
• The value of the transaction and the implications if it is deemed a transaction at an undervale.

We can help guide you in addressing these considerations and provide a legal structure for the transaction that meets your objectives.

FAQs about title splitting

Are there any tax implications of title splitting?

When title splitting, you must consider two types of tax: capital gains tax and Stamp Duty Land Tax (SDLT). 

Capital gains tax may apply when you sell a property or a portion of it after the title has split. The tax rate depends on several factors, such as the time you have owned the property and its appreciated value. 

SDLT could also be applicable. Our legal team can give an overview of the SDLT implications of the title split to ensure you fully understand the position. This in turn will allow you to seek appropriate advice from your tax advisor based on the structure we will have outlined to you.

Do I need to notify the Land Registry?

A vital stage in the splitting of titles involves the registration of the new interests created at Land Registry. For each transaction that creates a new title, this must be appropriately registered at Land Registry. Our team is proficient in handling all interactions with the Land Registry, from the initial application to resolving any issues that might arise during the registration process.

What costs are involved in title splitting?

Costs aren’t limited to legal fees; they also include application fees for the Land Registry, possible charges for planning permissions, and any potential tax. Having a comprehensive understanding of the associated costs can offer you a clearer picture of your investment's viability.

Do I need new title deeds?

Title deeds are the legal documents that prove ownership of a property. In the process of title splitting, new title deeds will be created for each separated unit, and you must ensure these are drafted accurately. This is a key role of ours in ensuring the transaction is structured in a way that gives a good and marketable title to the new interest(s) created.

Why choose JMW?

JMW brings decades of specialised experience in title splitting property, conveyancing and other related real estate matters. We understand that splitting titles of a property, including mortgaged property, is a serious investment requiring meticulous planning. Our commitment to legal excellence and integrity ensures that you’re guided by a team of experts well-versed in UK property law.

When you choose JMW, you’re forming a partnership aimed at making your property transactions both legally compliant and financially rewarding.