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Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
For clarity the whole title is presently subject to a mortgage. Is that correct please?
Thanks. Why will splitting the title increase the build cost in your view?
Do you mean the value of the land for resale?
By the split title mortgage (a) will still exist.
title b will have a value that I can raise money on for new build (a seperate/new property)
Ah I see. Thanks. OK well the only way you can split a title is by transferring the part you want to split off to a third party - e.g. a spouse or very trusted third party. Do you have such a person? It is possible to protect your financial interest despite this which I will come to but you still need someone else that you would trust in such a transaction. Is there such a person available?
my wife..mm but we share the title on the existing house... or maybe my daughter she is 19.
but would we not have a stamp duty problem?
Thanks. If the main property is jointly owned this makes it simpler. you can therefore consider transferring the part of the title you wish to split off from your joint names into your sole name. This perfectly permissible and can be achieved using a TR1 transfer deed. THis would be simpler than involving your daughter. There are no stamp duty implications on the basis that you are transferring for nil consideration and no capital gains issues with regards XXXXX XXXXX between spouses
according, this would seem to be relatively straightforward. Your stumbling block however if there is one will be your existing mortgage as you will need your existing lender's permission in order to split the land off as based upon what you said, they have a mortgage over the entire plot
accordingly, you will need to first consider an application to your lender to request permission to transfer off the land you propose. they will consider your application based upon the present loan to value your property and consider whether the land that would remain would be adequate security based upon their lending criteria. If the loan to value ratio is low - i.e. there is plenty of equity in your property - their consent is more likely than if it were high - i.e. not much equity.
if they consent, then it is relatively straightforward process which would require relatively nominal involvement of your solicitor whereby simply transfer the property from your joint names into one of your sole names, for example you and the lender consenting to the transaction, usually by signing the transfer deed as well although some lenders require slightly different process involving a deed of substituted security (though this is just a procedural issue)
you would then have a successful end up with two titles, one in your joint name being what remains of your existing property and new title in your sole name being the land you have split off
Ok I think we should be fine on the equity for property a.
Do you think it would not need to be a financial transacion for deed b. to be split as far as the land registry is concerned.
No - there is no such requirement.
Land can be transferred for nil consideration quite legitimately.
I understand they are reluctant to split title deeds without.
Not true. The will not just split the title - they require a transfer but providing you transfer the land there are no difficulties with the Registry. the registry must register validly executed transfer deed and the land registration act 2002-it is not optional.
Is there anything above I can clarify or assist you with any further?
Would you act as a solicitor?I think thats it for now !
Unfortunately the terms of my agreement with this service prohibit me from accepting private referrals otherwise I would be pleased to. However you will not find it difficult to find a solicitor to act - it is a very simple matter providing you get agreement from your lender as above. I would expect you to pay anything from £200 (Cheap) to £400 (on the expensive side) + VAT with a target fee ideally somewhere in the middle.
However notwithstanding the above if I can assist any further as the situation develops please do not hesitate to revert to me
OK Thanks John
If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though.
Ok will do thanks .