If I want to sell or refinance part of my property do I have to do anything at the land registry?

We are often asked, “if I want to sell or refinance part of my property do I have to do anything at the land registry?” Well, the answer is yes, you do.

In England and Wales, we have freehold property and leasehold property. Typically, Freehold land has one or more buildings built on it, and you own the land and buildings. Leasehold is usually apartments, or commercial units, where a building has been subdivided into separate units. This is what you will hear and read about Freehold – Leasehold or Title Splitting.

We don’t always realise that when we sell or refinance part of the land, that is also Title Splitting. Title splitting land is literally a way to double the value of a property and create much needed new homes for people. It’s a massive topic, and I thought about how to make a bite-size guide to enable you to get started. You can start looking for land Title Split opportunities today. Here are the first 3 steps to get you started.

Step 1

The big thing to remember is that the HM Land registry creates a Title Number and a Title Plan when we deal with land in the UK. This is your proof of ownership. The plan is crucial as the area edged in red on the Title plan shows you the extent of the land you own.

This is where you will spot the opportunities.

Houses with land adjacent, such as a side garden, are excellent for Title Splitting land. In the South of England, developers infill houses in all sorts of small places. Outside London, it really needs to be a larger plot.

Look out for houses with a large side garden.

Step 2

Once you have spotted a property that has the potential to split off part of the land to create a separate legal title – Title Splitting. You will need to look at obtaining planning permission to add value to the Title Split land. This is a perfect scenario for an Option. Options and Title Splitting land are an ideal marriage when making money from property.

Step 3

Properties to avoid. You don’t want to be side-tracked and spend hours of time and money looking at properties that are not ideal for Title Splitting land. Large plots with land or garden at the back of the house do not work as well unless they are next to a public highway. Avoid properties where the land you want to split off is a strange shape, too small or landlocked.

The Opportunity

You can use the land you split off using the Title Split strategy to build another house, build apartments, create a commercial building, or to add value by gaining the planning permission and then selling on (planning gain). No one else is looking at these pieces of land, giving you an edge over investors looking for the traditional buy 2 lets and H.M.O’S.

Start looking now. You may be surprised by how many opportunities for Title Splitting land you find near you.