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I need advice on the best way to split 1 title into 3 and keep hold of the split units. As far as I’m aware, I cannot be the freeholder and leaseholder at the same time. The property was granted permission to be set up as 2 x 1 bed self contained units, and 2 x bedsits in 1995, although planning permission was never granted. The vendor recently, due to pressure from the council turned the 2 x bedsit into a 1 bed self contained flat, so the property is now 3 x 1 bed self contained flats being sold on 1 title.
I plan to refurb each unit and obtain the planning permission to remortgage each flat on its own title. I’m buying this property using a mix of bridging, my own funds , a personal loan and secured loan – the bridging loan equates to 25% of the purchase price.
I’ve been advised the best thing to do is set up a limited company (possibly a SPV) to buy the property and then when I remortgage the limited company will be able to issue the leases to myself (the price I’ll be buying each flat for falls up the stamp duty threshold at least eliminating that cost). What I would like to know is if this is the best solution for this issue and will mortgage companies have a problem with me buying the leaseholds from a company I am a director of?
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