New build house in garden, question on splitting deed

[dysty42]

Hi all,

I am close to completing a new build house in my garden. As a self build I've applied for a CIL(community infrastructure levy) exemption. The final forms, which I have to submit within 6 months of completion ask for the title deeds of the property to which the exemption applies.

I took this to mean I needed to go to the land registry and split the title deeds of my original house. However, having spoken to a conveyancing solicitor - the advice seems to be to wait and not do it until I sell one of the houses.. most likely the older one. He said the land registry will generally not just split a piece of land without some kind of event, such as a change of ownership.

Does anyone know if there is any real reason I need to split the title deeds before I come to sell one house? Are the council likely to accept the deeds for the whole property(now two houses), when I complete the application for the CIL exemption?

There is no mortgage on the property.

Also, as an ex council house(I'm a 2nd generation owner), my current deeds have a covenant put in place by the council when the house was originally sold off. I had a huge battle with the council during planning who tried to get me to pay them more than £30k to grant me permission to build under the covenant. I eventually defeated them and ended up paying £125 for a letter granting permission. So my additional question is - when I do eventually split the deed, I assume the covenant will remain on both the properties?

Any insights much appreciated!

Edited August 20, 2020 by dysty42

[Mr Punter]

Just give them the current deeds and sort the rest out when you sell part.  You can't "split" a title easily.  You need to transfer part to A.N Other person or firm.  The part you transfer will be removed from the title with the charge from the LA for the CIL.

[Temp]

Someone on the forum had problems with the LR when trying to split a title. As I understand it its an issue with restrictive covenants and the fact you you can't restrict yourself - or something  like that. 

[Ferdinand]

There are ways of doing things, but you need appropriate advice from your solicitor and tax accountant on how to work in your circs.

 

Land registry practice booklets can be helpful background.

[dysty42]

Thanks for the responses. 

The core of my question is really whether or not the council will accept the deed as it stands(a plot with 2 houses) as acceptable for the CIL exemption. Maybe I need to try and get an answer from the actual council on this, but I wondered if anyone else who had self built in their garden had experience of this scenario.

If they will accept it, then everything is simple as I can just split the thing when I sell a house. My cousin actually works at the land registry, so I've asked if she has any advice but have not heard back yet. The conveyancing solicitor I spoke to did not know about the situation of exactly what documents were needed for the CIL exemption.

The CIL form says:
(b) Title deeds of the property to which this exemption relates (freehold or leasehold)

[Ferdinand]

I don't see how the Council can make a fuss about this - without there having been a screw-up in the CiL Law or a screw-up in the Council interpretation of said law.

 

It is basic to Planning Law that ownership is not relevant to Planning Decisions (subject now to the tickbox that the owner has been informed), and that civil law is not a relevant consideration.

 

I don't see how the CIL law can drive a coach and horses through that principle.

 

I would email the Council Legal Team (probably not planning)  and ask for a specific comment on the point if you need further reassurance. Word it so that the reply would be binding if you can.

Ferdinand

 

 

Edited August 21, 2020 by Ferdinand

[dysty42]

Thanks also Ferdinand. I went back the the council infrastructure guy who I'd had other CIL dealings with, I remember him(even though it was 2 years ago), because he was really helpful and well informed unlike most other council people, who I normally ended up in a fight with.

Anyway, this was his response, I thought I'd post incase it might be useful to anyone else in the future(though whether all councils, or even all infrastructure people, would handle it the same is anyone's guess):

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As long as the submitted title deeds cover the land on which the dwelling sits, I am happy that they cover both the old and new dwellings.

 

I would suggest along with the title deeds, the registered plan is also supplied. I can then compare back to the planning application and confirm that they match and meet the CIL requirements.

 

As the run off period is 3 years from the completion date, I would also suggest that it is worth while supplying the new title deeds once the title is split to prove that you retain ownership of the new dwelling.