The most common scenario in enhancing the value of your property portfolio by title splitting is to buy a large property, often one in need of refurbishment, and to split it into several properties. The most suitable subjects for this strategy are usually tenements, or former nursing homes, hostels or guest houses.
Of course, in this sort of project, the cost of the refurbishment work has to be added onto the purchase price in order to work out whether you can make a profit.
Perhaps the easiest option is to purchase a property which has already been split, such as an HMO (House in Multiple Occupation). Here some of the renovation work would have been done for you, and you might be able to continue renting the property out partially while you get on with redevelopment work. But title splitting need not necessarily be done with an existing building – you can also do it by purchasing a plot of land and building not just one, but more houses on it. Each house is then recorded separately with the Land Registry.
Another potential scenario is that you could buy a house with a large garden – often a corner house – and split it to build a second house on the garden.
Permission
Of course, there are complications to property splitting, whichever route you take. For instance, if you sell individual flats as leasehold, you may still want to hold on to the freehold for the property.
Other considerations when title splitting are that you will have to get an extensive survey done, as well as obtaining planning permission, which can be time-consuming.
A successful title split relies on the co-ordination of your finance, your tax strategy and the creation of your leases, which is why a specialist advisor offering collaboration with wealth and tax experts as a ‘one-stop’ title split solution is worth seeking out.
Raminder Singh Uberoi of solicitors Starck Uberoi (www.starckuberoi.co.uk), says; “Our experienced solicitors and financial advisors work collaboratively to provide comprehensive legal, financial, and tax solutions. By combining expertise under one roof, we ensure that every aspect of your title split is approached with precision, efficiency, and a focus on delivering meaningful financial outcomes.”
See also: What is a Title Split and How Can it Make You Money?
