Spitting a freehold title

Answered on 4 November 2017 by Nick Morrey

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?

I'm not sure 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.

I'd 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 0344 346 3672 and we'll arrange a convenient time to talk.

Answers provided in response to Ask the experts 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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