Buy house with a friend and split to 2 apartments

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    Buy house with a friend and split to 2 apartments

    I am looking for some expert help and i dont know where to start.

    I am looking at buying a house 50-50 with a friend and i am looking to find out how i can buy this house, extend it and then split it to 2 flats one for me and the other for my friend whilst keeping the 50% ratio. How do you do that, who gets the garden, is responsible for the roof etc?

    any advice suggestion would be appreciated. if you can do this what is the cost to sort out all the paperwork?

    #2
    Buying the house with a partner will show both names as the registered proprietor of the freehold title and a simple deed of trust to be drawn up by your solicitor will show that each owns 50% of the property as tenants in common.
    The deed of trust will specify that each will share equally the costs of developing the flats including planning fees and building costs.

    Once the two flats have been completed, then it would be possible for each party to have a lease granted by the joint freeholders so that each party becomes the sole owner of a flat with its own leasehold title.

    That is when the responsibility for the roof can be decided.
    Either it goes with the flat, or it remains as part of the freehold title as it will not be demised by the lease.
    The method of dividing up the gardens can then be considered with parking spaces included in the individual leases as well as which part of the back garden goes with each flat. Also what rights of way over the freehold land is required if there is to be common land not allocated to each leasehold property. Sometimes the path to the common front entrance remains in the freehold title with separate parking allocated on each side for the flats.

    All of these matters can be dealt with amicably once the development is completed and the two leases are drafted by the solicitor employed by the joint freeholders. That is when you each decide who gets what flat.

    As long as agreement if reached all should proceed smoothly.
    Only if there is a disagreement between equal partners will problems arise.

    When I had a business partner, we included a clause into the trust agreement that in the event of a 50/50 vote with one in favour and one not, then for money matters our accountant had the deciding vote. For legal matters our solicitor had the casting vote.

    Fortunately neither one was ever needed, but is needs to be spelt out how such a situation can be resolved.

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