Joining two properties

Hello.  My partner and I own two flats which are joined together for all practical purposes but have never been unified in terms of the land registry, council tax or utilities. My partner bought his 25 years ago, and when I moved in and we had a family, we bought the flat below by re-mortgaging upstairs and purchasing downstairs outright in my name.  By building a stud wall and moving a door, the two flats are now one dwelling (but this could easily be removed so they can be separated again in due course).  We contribute equally to the mortgage but pay the bills for each flat individually.  

We are finally going to enter into a civil partnership and I am told that this has implications for when we eventually sell the two flats as one might then be regarded as a second home and as such, subject to capital gains tax.  That being the case, we have been advised to legally make the two flats into one property - but we'd also like to have the option of being able to separate them again if necessary for the purposes of selling. Is this all possible and what the simplest way of doing it? 

Hello Ginny - you don't mention whether these are freehold or leasehold flats and if the latter then the landlord/leases are very likely to prevent what you plan to do.
If they are freehold then the following explains how we deal with requests to amalgamate two registered titles and as they are in separate legal ownership it would not currently be possible to do.

An amalgamation is the joining of two or more parcels of registered or unregistered estates affecting different extents of land under a single registered title.

We do not amalgamate titles unless some positive advantage accrues to a number of prospective purchasers (such as an amalgamation of areas of land comprising a housing development), or the request does not add unnecessarily to our workload.

Amalgamation can only happen where: 

• the estates are of the same kind [for example, freehold title] 
• the estates are owned by the same proprietor[s] and in the same capacity [for example, if an owner holds one title as joint proprietor and another as sole proprietor, amalgamation of the two cannot take place]
• the impact upon any encumbrances on individual titles, such as mortgages, have been accounted for  

If you wish to apply for amalgamation you will need to complete and submit:

• Form AP1
• a covering letter outlining the reasons for the request along with any supporting evidence [If you are being refused insurance, for example, then you should include a copy of that refusal with the application]
• a sufficient description or plan of the land being amalgamated 
• a fee of £40.00 [cheques/postal orders to be made payable to HM Land Registry

To find out where to send the completed form, see Land Registry address for applications.

Your application and any supporting documentation will be considered on receipt.

Hi Adam - many thanks for your prompt reply.  We live in a converted house, divided in the 1970s into five leasehold flats.  The freehold is owned by the management company of the house, of which each flat owner is a director.  The leases were relatively recently extended to 999 years.  I will have to investigate the terms of the leases but would be grateful if you could let me know if this makes a difference to your advice above.

Hi Ginny - if they are leaseholds then amalgamating them isn't going to be an option for you. I would recommend revisiting the tax advice and more received to consider what options are available to you as appropriate but which don;t involve trying to turn two leaseholds into one

Ok, many thanks.