Land Registry Splitting Title

Bridging the gap between lucrative finance deals and high-net-worth individuals, investors, and developers in the UK.

Get property finance advice.

Get In Touch

1 Step 1

Home » Land Registry Splitting Title

Land Registry Splitting Title

Scott West chats about how to split property titles with the Land Registry, including what it costs and the legal stuff involved.

What is title splitting?

Title splitting divides a single Land Registry title into multiple separate ones. This is typically done when a landowner wants to develop and sell part of their property, like building a house in a large garden. Without splitting, the original property and new development would remain under one title, preventing individual sales. Splitting the title creates distinct plots that can be sold or refinanced independently.

Can you split a Land Registry title? Can you have two names on title deeds?

Yes, multiple names can be listed under deeds. You can also split titles by applying to the Land Registry with the correct documentation. It’s best to get your solicitor’s help to ensure the process is handled properly. Be aware that creating or splitting titles can sometimes incur Stamp Duty, so discuss this with your solicitor to prepare for any potential costs.

How do I remove my ex-partner from the Land Registry?

A transfer of equity, typically handled by solicitors, is necessary when adding or removing someone from your mortgage, such as a new partner during a remortgage or an ex-partner following a divorce. In a divorce, you would likely remortgage to replace the existing finance, because the ex-partner doesn’t want to be liable for the mortgage. At the same time, the solicitor will do a transfer of equity form and transfer the equity back to you. Normally, in those circumstances, you’re probably buying them out of the property, but that’s between you and them; but the solicitor will handle the paperwork.

How do you split a plot of land? How do you split jointly owned property?

To split a plot of land, you need a surveyor’s plan clearly showing the proposed division. Typically, this is a straightforward line creating two new plots. Once drawn, you apply to the Land Registry to register the new titles. The process is the same for jointly owned land; all parties simply sign the paperwork. The only exception is if you’re also removing a co-owner, in which case a transfer of equity form is also required. Otherwise, the procedure for splitting is the same for single or joint owners.

Do I need to notify the Land Registry?

Yes, any changes to legal ownership, title structure, or boundary lines must be registered with the Land Registry. This registration makes the changes official, legally binding, and verifiable for ownership and plot limitations.

Do I need new title deeds?

Formal property deeds are no longer physical documents; they’re electronic. While you won’t receive them in the post, you can download title documents and boundary plans from the Land Registry website for a small fee (around £3-£4 per document). If you split a title, like carving off part of your garden for development, the original property retains its title number, but the newly created plot will receive a new one. Both properties will then have updated boundaries reflected in the Land Registry. So, if you were to download them afterwards, you’d see the changes.

Speak To an Expert

Combining our unparalleled industry experience and rich cross-border network with an unwavering passion for securing lucrative deals, we’ll lead with a focus on your short, medium, and long-term objectives.

How much does it cost to split title deeds in the UK?

For a straightforward application, such as carving off a portion of a garden, expect costs of around a couple of hundred pounds. This typically covers surveyor and solicitor fees, as the work involved is relatively simple. More complex scenarios, like creating multiple leaseholds for a block of flats, could range upwards of a thousand pounds. However, for most common situations, a few hundred pounds should cover it.

Can I sell my half of jointly owned land?

Yes, if you hold the ownership as tenants in common, you own a percentage of the plot and are generally free to sell your share. So it might be that you and your partner have 50% each or 40-60, depending on how much deposit you put in, provided there are no legal restrictions on the property. However, it becomes more complex if there’s outstanding finance, as any sale would necessitate a remortgage to reflect the change in ownership. While legally permissible to sell your share, the practicalities depend on the individuals involved and the existing mortgage arrangements.

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

The first thing to consider is whether the transaction is worthwhile. For example, if you’re carving off a piece of your garden to build a house you intend to sell, then it’s worthwhile because you need to separate the title to do that. However, if it’s a small “granny annexe” and you plan to house family there, splitting the title might not be necessary, as your current residential mortgage lender might allow it to be there anyway. So, it depends on your ultimate goal. Don’t assume you have to split the title just because you’re adding another property.

There are instances where it’s not needed. For example, a client redeveloped an old bank into an HMO and built five houses in the large car park. He initially wanted to split the title, but we didn’t need to. He was keeping all the properties as buy-to-lets, and carving off the titles would have only created stamp duty liability. Instead, we found a lender willing to mortgage the entire plot with all properties on a single mortgage, saving him significant costs.

So, be very mindful of the process and your goals, as splitting the title might not be required. If it is, then you’ll definitely need a solicitor.

Are there any tax implications of title splitting?

Ultimately, you’ll need to consult an accountant and solicitor for exact costs. When splitting a title, Stamp Duty Land Tax is likely due as new value is created; it might only be land, but there’s still value. If you are splitting a title and removing someone to the transfer of equity point, there could be capital gains tax on your share. If you own 50% of a plot, you sell it, and that’s gone up in value over the last 10 years, capital gains tax could be liable, unless it’s your main residence. So those two are the primary ones to consider, and an accountant can clarify them quickly.

What are the benefits of title splitting? Do you think we should cover both the benefits and risks here?

Absolutely. Splitting titles offers several advantages. It can significantly increase property value by creating individual plots. For instance, a client with five units on a single title struggled to sell as one large unit. By splitting them, individual houses and a large HMO could be sold, increasing market reach and value.

Another benefit is for refinancing. A smaller portfolio generally secures better deals with high street lenders on single buy-to-let mortgages, rather than bespoke portfolio products, which often incur higher rates. It’s crucial to analyse if the cost of splitting is less than the increased mortgage cost, as this varies case by case.

The primary risk, however, is splitting unnecessarily. For example, if a granny annex scenario doesn’t require it, you could incur solicitor fees and stamp duty for an avoidable transaction. The downside is essentially deciding without proper consideration.

How can a mortgage broker help here? Have you got anything else you’d like to add?

While we can’t assist with the legalities of splitting a title, we can certainly help you understand the financial costs for both scenarios: splitting the title or keeping all properties on a single title. We’ll provide a cost analysis so you can determine if exploring a split makes financial sense, especially if your intention isn’t to sell the properties anytime soon. We can also work with you on a business plan to ensure your steps align with your ultimate goals.

For specialist tax advice, please refer to an accountant or tax specialist.