split plot before application?

[Bluebaron]

 

attempting for planning permission as the moment. pretty confident i will get by Christmas. 

 

Splitting my current plot. My current residential mortgage is up for renewal end Dec. Would it be advisable to split the plot now in order to secure both my new mortgage (on reduced plot) and be ready for the self build application when planning comes through?

 

 

 

 

[Oz07]

Xmas. You must have a good local authority. 

 

I don't think it matters when you split. I thought land registry resisted splitting titles when it was going to be the same owner on both? I would split at the same time as mortgage self build if possible then one lot of legal fee's. 

[Bluebaron]

I spoke with ecology and they have  advised that I will need separate title to get new mortgage. My current provider also advised they would be better to split first as revaluation may be required.

 

 

Edited September 12, 2025 by Bluebaron

[Temp]

Can be an issue with the land registry if both parts are in the same name. Something about covenants not being enforceable against yourself? I forget the details.

[Bluebaron]

Just spoke to a conveyancer and as above I can’t transfer land to myself or split a title.

 

surely this must have come up before  for someone, I think my issue is I have a mortage on my current house and will need a self build mortgage on my next one before I sell the original. 🤔 

[Oz07]

2 hours ago, Bluebaron said:

Just spoke to a conveyancer and as above I can’t transfer land to myself or split a title.

 

surely this must have come up before  for someone, I think my issue is I have a mortage on my current house and will need a self build mortgage on my next one before I sell the original. 🤔 

You won't get 2 mortgages on same title I'd of thought. Maybe if you contact self build lenders before you remortgage they could offer it in one loan? After all they do lend for purchase of plots

[Bluebaron]

Yep that’s a good plan thanks will try that.

[Bluebaron]

Yep that didn’t work;

 

“Unfortunately, we would not be able to lend on this basis.

 

My suggestion would be to contact an independent financial advisor to see if another lender can help remortgage your property for this purpose.”

[Oz07]

are you married? Sell plot to partner?

[Mr Punter]

You could set up a ltd co and transfer part.  You would need to be aware of stamp duty, cil, cgt and other tax implications and take proper (not Angela Rayner type) advice.

[Oz07]

22 hours ago, Mr Punter said:

You could set up a ltd co and transfer part.  You would need to be aware of stamp duty, cil, cgt and other tax implications and take proper (not Angela Rayner type) advice.

Are land registry ok with doing this if the shareholder is 100% the original owner? I know people transfer their buy to lets to ltd companies but I'm sure I was advised once they still don't like to split a title if the new owner is a ltd co. with original owner as shareholder. It doesn't sound right to me maybe I heard wrong.

[Temp]

As I recall it's to do with covenants but if there aren't any perhaps it's not a problem for the Land Registry?

[Temp]

Interesting thread..

 

https://customerhelp.landregistry.gov.uk/forums/general-info-and-guidance/6ab2b443-137d-ef11-a4e6-6045bdf15e68

[Bluebaron]

Thanks Temp,

 

it looks like I’ll have to secure the planning permission first and then present this as evidence to land registration and they should be able to split the plot using the advice in the article you posted.
 

 

[Mr Punter]

It would be good if you could update this thread when you hear back from LR / mortgage firms.

[Bluebaron]

yes will do, i'm hoping to get the planning decision early/mid December then  ill complete the AP1 land registry form using the planning decision as evidence of why i need to split.  I'll update as appropriate. 

[Fi and J]

Any update? We are in similar position. Particularly keen to understand how not to get totally mugged by taxman for drawing an imaginary line down the middle of my garden. 

[Temp]

1 hour ago, Fi and J said:

Any update? We are in similar position. Particularly keen to understand how not to get totally mugged by taxman for drawing an imaginary line down the middle of my garden. 

 

If you are selling off part of your garden with planning permission its important that the sale qualifies for Private Residence Relief (PRR). My understanding is you shouldn't clear the land and fence it off. It should still look like part of your garden. 

 

ChatGPT says..

 

Quote

 

A frequent problem occurs when owners separate the plot from the garden in practice before selling it.
Examples that can weaken or remove the relief include:
fencing the plot off so it is no longer used as part of the garden
creating a separate access or driveway for a future house
marketing it clearly as a development plot for a long period
granting a long option agreement to a developer where the land stops being garden land in practice

If HMRC concludes the land ceased to be part of the garden before the sale, it may argue that the land no longer qualifies for Private Residence Relief. In that case the gain on that piece of land can become liable for CGT, even if the property itself is still your main home.