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Allocation of Premiums to New Leases-Splitting of A Single Title I have recently set up a company (I am the sole shareholder) into which a freehold title is to be transferred. Two 120-year leases on 2 flats are then to be granted from the company to myself. Two flats -Flat A and B have respective similar values (circa 450k for each) A mortgage offer has been made to me personally (not the company) on both flats by a lender What i don't understand is this: My solicitor has told me that when he calls for the funds from the lender and issues a certificate of title he needs to advise the lender that I will pay out to the company LESS than the values?;that he will need special clearence from the lender because he is going to receive mortgage facilities from them but be paying out LESS than the agreed values. (I don't understand what he is talking about here?) He has asked that I think carefully about the premiums to be inserted on each new lease. I have not got a clue what he is talking about and do not wish to appear to be totally stupid. Can someone please explain to me in simple language what is going on here as I am totally out of my depth? I thought I could simply offer a peppercorn premium (£10.00) for each of the two new leases to be granted to myself from the company, the mortgage is then effected on each new lease to the lender, then I pay SDLT on the estimated value of each lease to HMRC? Where have I got it wrong? Thank you