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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10537
Experience:  Barrister 17 years experience
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I am considering buying an existing property (1 main house, 1 separate cottage, stables, o

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I am considering buying an existing property (1 main house, 1 separate cottage, stables, outbuildings, gardens and 15 acres) with a friend and would like to divide it up into 2 separate properties (with separate deeds). I would have the cottage, stables, grazing land. She would have the main house, gardens, some land. We would need to put up fencing but could share the existing access. The property has 'farm' in its title but I think it is currently used as domestic and equestrian. It is not a listed property and not in a conservation area. We would work with what's there and just add fencing to divide up. Would we need planning permission? Can you split title deeds? Are there tax implications?
Regards.
Sophie
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Dear Sophie, firstly, you won't need planning permission in order to divide up the property into two piece, as there is no intensification of user. However, if you convert the stables to a residential dwelling, then you will need planning permission. Any change of use prima facie needs planning permission.
Expert:  Buachaill replied 1 year ago.
2. Secondly, the method of splitting the property is to simply divide the folio in two and give the piece broken off a new Folio number. This can be done by your solicitor if you have hired one. Alternatively, you will have to do it yourself.
Expert:  Buachaill replied 1 year ago.
3. The only tax implications which arise from the division of the property arises from the value each of you put into the overall property as this is the starting point for you, in the future, when considering the baseline amount for Capital Gains Tax values. Any "gain" or increase in value above this baseline amount would lead to a tax charge in the future. However, if each part of the divided property is used as a residence, then principal private residence relief would apply so this would not be a very important point.
Expert:  Buachaill replied 1 year ago.
4. Please RATE the Answer, Sophie, as unless you RATE the Answer, your Expert receives no payment, so there is no incentive to answer any further questions.
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