Sub-division

Hi. We have a client who currently owns a piece of land and has built two houses on the same. They own the land in their company name. They now wish to transfer part of this land into a new freehold title. Our understanding is that the new land will have to be transferred to a separate entity as you cannot covenant with yourself. The client however has informed us that he has spoken to yourselves and you have suggested a sub-division. Please could you explain what this would entail. If the sub-division is not applicable, please can you confirm that the client must transfer part of this title to the a separate entity. Thank you.  

Hi Harnit - they can't transfer to themselves and if the title needs to be split before selling then the following applies. 
Usually no split is needed as the buyer causes the split to happen when they register their purchase (transfer of part)
 

It is possible to split or subdivide the registered title of your property, however, if it is not as a result of a sale/transfer, it would be at the Registrar's discretion, and you would have to disclose your reasons for the request.

If you wish to lodge an application:

• You must apply on form AP1, notifying us that a transfer is not required.

• You must explain in a covering letter the reason why sub-division is required. 

• You will need to clearly identify the extent on a plan that complies with our registration requirements. You can find out information about plans in HM Land Registry plans: guide overview (PG40).

• If the land is subject to a mortgage, consent to the subdivision of title must be obtained from the lender.

• There is a fee of £40.00. Cheques/postal orders should be made payable to HM Land Registry. We do not currently accept card payments for applications.

Please be aware that we will only consider your request once a formal application is made, and we may refuse to proceed with the application if we consider that dividing the title would not be desirable.

If you choose to prepare the application yourself, send it to the following address:

HM Land Registry address for applications.

Under our advisory policy we can give customers factual information and procedural advice about how the land registration system works and how to make an application, but we cannot provide legal advice. In view of the complexities of the law in relation to this matter you may wish to seek legal advice.