Spitting a freehold title

Answered on 4 November 2017

I have an investment property that was purchased as a shop with flat. I have since converted the shop to a separate ground floor flat (with local authority planning permission) so the property now consists of 2 self-contained flats - but on a single freehold title. I am looking to remortgage an existing commercial loan (when it was a shop+flat) but the broker who arranged the original loan is finding it difficult to source a lender unless the title deeds are split into 2 long leases. I am reluctant to split the title/deeds - would you be able to help in this scenario?

Placing a Split on the Freehold Title

A freehold is the permanent and absolute tenure of land or property. By buying a freehold property, it means you own that property and the land on which it stands outright. Meaning that it is completely owned by you unless you decide to sell it.

It's unclear as to why your current broker is having trouble placing the case, as there are a number of lenders who would normally look at this type of scenario. Unless there's adverse credit involved, or a problem with the level of your income or the loan to value you are trying to secure is too high, then it's a bit of a puzzle as to what the problem is.

You can discover more about freehold and leasehold in our guide.

We would be very happy to go through your enquiry in more detail, as on the face of it, this would certainly seem to be something we should be readily able to help you with. If you'd like to do so, then call us on 0330 433 2927 and we can arrange a convenient time to talk.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.


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