Can I split a freehold title but keep both halves?

Yes, it is possible to split the freehold of a detached property into two separate freehold titles while retaining ownership of both parts in your name. While much of the available information focuses on converting houses into flats with leasehold arrangements, what you are describing is a "title split" of a freehold property into two distinct freehold titles. Here’s a breakdown of how this process typically works and the key factors to consider:

1. Title Split Process for a Detached Property
Engage a Specialist Solicitor
You’ll need a solicitor with experience in property title splits and land registration to guide you through the process. They will handle the legal requirements, including drafting the necessary documentation and liaising with HM Land Registry.

Survey and Plans
A detailed plan by a qualified surveyor (compliant with Land Registry’s Plan Requirements) will be required to show how the property will be divided. This should clearly demarcate the boundary line, access points, and any shared services (if applicable).

Planning Permission (If Required)
Typically, a simple freehold title split does not require planning permission unless you are making structural changes or creating new dwellings. However, some local authorities may have restrictions. It’s advisable to check with the Local Planning Authority to confirm their stance.

Application to HM Land Registry
Your solicitor will apply to HM Land Registry to formally split the title. This involves:

Submitting the new title plans
Completing an AP1 form (for changes to the register)
Paying a Land Registry fee (which depends on the property value)

2. Ownership Structure
You can keep both new freeholds in your name without needing to sell or transfer ownership to another person or entity. There is no legal requirement to transfer one title to a spouse, company, or other party unless it’s for tax or mortgage purposes.

However, consider discussing asset protection and tax efficiency with your solicitor and accountant. For example:

Holding both properties personally may result in higher income tax if you rent them out.
Using a limited company could be more tax-efficient for future rental income and inheritance planning.

3. Mortgage and Financing Considerations
Pre-Split Financing
As you’ve already found, a standard buy-to-let mortgage likely won’t apply before the title is split. You may need to use:

Commercial or bridging finance to purchase the entire property upfront.
Development finance if substantial works are required.
Post-Split Refinancing
Once the title split is complete, each new freehold will be individually valued, allowing you to apply for conventional buy-to-let mortgages on each portion. Ensure your lender is aware of your plans in advance, as some are more comfortable with title splits than others.

4. Tax Considerations
Stamp Duty Land Tax (SDLT)
If the total purchase price exceeds the residential SDLT thresholds, this will apply on acquisition. However, the title split itself does not trigger additional SDLT. Future refinancing may require a valuation but does not usually trigger further tax.

Capital Gains Tax (CGT)
If you later sell one or both parts, CGT may apply on the increase in value since the time of purchase. Keeping detailed records of your purchase and renovation costs will help mitigate future liabilities.

Income Tax
Rental income will be taxed according to your personal or corporate tax rate, depending on how you hold the properties.

5. Practical Considerations
Utilities and Services
Ensure that each new property has its own independent utilities (gas, water, electricity) or that clear easements are created if shared access is unavoidable.

Access and Boundaries
Since both properties border a public highway and do not require easements, access issues should be minimal. Ensure boundary positions and rights of way (if any) are clearly defined in the new title documents.

I hope that helps

Reply to the comment left by Steve Holland at 24/02/2025 - 10:43
Please note land registry will not accept applications to split titles due to their work load they are 2 years in arrears! not unless you are requesting a mortgage when carrying out the split of title.

Reply to the comment left by Nigel Thompson at 24/02/2025 - 10:55
I phoned land registry this morning and asked when they might be dealing with removing a charge on a property and transferring the title. It was estimated at around 1st May. I didn't think that was too bad until he said '2026'!
They will expedite if a sale or mortgage is required

Could keep freehold as is and create 2 leaseholds

Reply to the comment left by Steve Holland at 24/02/2025 - 10:43
Outstanding reply. Thank you so much for taking the time to give such a comprehensive answer. I think everything I need is contained in there.

Thanks everyone for taking the time to reply, I think I'm armed with everything I need to know now.

I am an experienced landlord (never done a split before though) but because of recent changes I've culled my portfolio with the last one agreed to be sold to the gentleman who lives in it next year when my fixed rate is up.

However, this deal came along locally and I think its too good to pass up.

Thanks again!

Reply to the comment left by JB at 24/02/2025 - 11:24
Hmm.Their view of what "expedited" means may not be the same as yours!

Reply to the comment left by Julesgflawyer at 25/02/2025 - 11:05
Their expedited was 10 days for me, for registering a Deed of Variation to extend a lease.