Title splitting on freehold propertyMake Text Bigger
Hi there, I’m Chris from Benfleet, Essex. I’m relatively new to property investing and am seeking some advice if anyone out there can advise me.
I have 3 BTL properties and 1 mixed commercial/residential property (a 2 bed flat and a shop below). I currently have this property on a repayment commercial mortgage.
I tried to change this to a BTL mortgage so I could get a lower rate than a commercial mortgage but as the property is part commercial I cannot do this.
I’m currently talking to the lender and they have just agreed to let me remortgage onto a BTL mortgage and at the same time split the title of the property into 2 separate properties.
I would then have no mortgage on the shop and a BTL mortgage on the flat so 1) I can get a lower mortgage rate and 2) It makes it easy if I decide to sell either property.
I was thinking of putting the flat on a new 125yr lease but my question is; am I best to also put the shop on a 125yr lease and have the freehold ground rent as a separate thing or am I best to just have the shop with the freehold or am I totally missing something else here that could work better?
Any advice/tips would be much appreciated.
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