Freehold title splitting with Unilateral Notice from JV partner?

Freehold title splitting with Unilateral Notice from JV partner?

10:28 AM, 28th November 2017, About 8 years ago 3

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Can anyone please help with problem regarding title splitting. I own a freehold property which is an HMO and a decent size plot of land to the rear. At my request, the lender released the land to the rear from the mortgage security so the land to the rear is technically unencumbered and the mortgage is only on the HMO however, the title has not yet been split. A plan showing how the land is split was agreed to by the lender.

I entered into JV agreement to develop the land to the rear and my JV partner has registered a Unilateral Notice against the title .

The lender is requiring me to have the Unilateral notice removed as my fixed term lending is coming to an end and they have offered me a new deal with a condition that this notice is removed.

I have explained that the notice does not relate to their security, but they are still insisting that I have the notice removed. A dispute has arisen between myself and my JV partner and he is not willing to remove the notice.

My question is, can I split the title and keep the ownership of both titles in my own name. My solicitor thinks not, but I would appreciate any ideas as to how to overcome this problem without a causing SDLT or tax issues.

Many thanks

Charmaine


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Neil Patterson

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Member Since February 2011 - Comments: 3449 - Articles: 286

10:30 AM, 28th November 2017, About 8 years ago

Hi Charmaine,

Do you still want to proceed on the project with your JV partner and can you disentangle yourself?

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Charmaine ******

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Member Since August 2015 - Comments: 24 - Articles: 1

11:34 AM, 28th November 2017, About 8 years ago

Unfortunately we are in dispute over the terms of the JV

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Puzzler

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Member Since July 2013 - Comments: 1264 - Articles: 1

10:01 AM, 30th November 2017, About 8 years ago

If the title isn’t split then I think technically it may affect their security, they essentially didn’t give you anything when “unencumbering” the land. You need to sort things out with your JV partner first, presume the notice is to register their interest. If it gets repossessed because you cannot remortgage, their interest may be worthless. Or it may by default relate to the whole property. Both of you need to go and see a specialist solicitor. The easiest option is to get the title split as soon as possible.

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