Title split for different use classes

I am in the process of purchasing a large investment property using cash in South wales. The property is currently a 4-bed terrace with another property of similar size in the garden, which is attached to the front property by a kitchen extension. The properties share a courtyard in the middle, but have separate access points at the front and rear. The purchase is being done under a ltd company with the intent of converting both properties into rentals.

Since this is wales, I need to submit a planning application for change of use. My initial idea is to convert the first property into an HMO for professionals. I would like to convert the second property into a separate dwelling for serviced accommodation. According  to  the  broker, refinance Is not possible if i have 2 dwellings with different use classes. Therefore, I need to split the title in order to achieve this objective. Both titles would remain in the same limited company.

i understand from other threads that this is possible to achieve at the discretion of land registry by submitting an expedited application.

• I will be submitting a full planning application to the council for change of use with concept drawings
• There is currently no lending on the property as I have purchased using cash

Would any issues regarding the split (such as separate utilities, access requirements, etc) be addressed during the planning stage? If planning has been secured, what other factors could prevent a successful outcome?  

Rebecca - there's no link between planning and registration. If you have concerns re the planning process then you should contact the planning authority.
Here's the general guidance issued to someone wishing to apply to split a registered title

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.

Hi Adam

Thank you for the prompt response. Since planning and registration are separate concerns, would you be able to advise what factors would affect a registry decision in relation to a title split. Are you able to provide information regarding what circumstances would be considered undesirable when dividing a title (or point me to specific documentation on this)?

For example, both properties need to have separate access points and separate utilities, cannot have windows facing each other, etc? I am just trying to understand the feasibility of it at the moment. Thank you

Hi Rebecca - sadly not. We only consider whether the reasons given are 'desirable' once the application has bene submitted and the reason(s) given. There is no list of 'undesirable' reasons for example.
Your example would not be a sufficient reason as they relate to the buildings themselves and as they both sit on the land as registered splitting the title does not alter the registration position
For example you can do all the changes you propose and more to make the buildings into 'separate' concerns. Splitting the registered title has zero impact on those changes. And if, having made all your changes, you then wish to sell part then you can do so and the purchaser would then register their purchased part and the 'split' would occur at that point.