Buy house with a friend and split to 2 apartments

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  • pilman
    replied
    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.

    Leave a comment:


  • theogeorgio
    started a topic Buy house with a friend and split to 2 apartments

    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?

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  • Less than 50% of freehold
    by raskitt
    I have just started conveyancing for a share of freehold flat. The flat is the ground floor of a converted house.

    I have just found out that the other 2 share of freehold flats are owned by the same person (who originally owned the whole building).

    How much of a problem is...
    29-06-2022, 13:28 PM
  • Reply to Less than 50% of freehold
    by AndrewDod
    No. Your obligations and those of the FH are determined by the lease. When the FH does not obey the lease (or cheats) you have recourse via the courts. If you are part of the freeholder (but with no actual ability to uphold those obligations) you would be taking legal action against yourself. If as...
    30-06-2022, 15:11 PM
  • Reply to Less than 50% of freehold
    by raskitt
    Thank you, my thoughts are going this way. Could you explain briefly why it would be worse? I assume because I'm on the hook for shared costs whereas if I had the same flat but without the freehold I would not...
    30-06-2022, 14:40 PM
  • Reply to Less than 50% of freehold
    by raskitt
    Yes that is correct...
    30-06-2022, 14:38 PM
  • Reply to Less than 50% of freehold
    by AndrewDod
    If you own a minority share of the freehold, then true you have no say at all. The freeholder still has to obey the lease and the law though.

    I would not buy it. Owning a minority share in a "share of freehold" situation is far worse than not owning any share at all (and having...
    30-06-2022, 11:54 AM
  • Reply to Less than 50% of freehold
    by Lawcruncher
    Do you mean that you are buying a leasehold flat with a share of the freehold?...
    29-06-2022, 21:47 PM
  • Reply to Flying freehold
    by pilman
    It is possible that the house was originally a council owned property along with the other houses in the terrace.

    The register of title may show the details of the original transfer deed with a Copy Filed at Land Registry, as may the register of title for the adjacent house that has access...
    28-06-2022, 09:08 AM
  • Flying freehold
    by SouthernDave
    I’m hoping Lawcruncher or other legal minds can comment on this… seen a property to buy, its terraced so there’s a house on both sides, but there is an open walkway through the house to allow access to the rear garden. This also gives access to the immediate neighbours gardens. the ‘alley way...
    15-06-2022, 19:29 PM
  • Ex Council Garage Land
    by Ian Palmer
    Ex Council Garage Land

    Two years ago during lockdown I walked my local area and noticed a piece of land that looked like it had been abandoned. The land was open for anyone to walk into and as I got to the end of the driveway there were two run down sheds/Garages from the 60’s, Asbestos...
    29-01-2022, 11:14 AM
  • Reply to Ex Council Garage Land
    by Lawcruncher
    In the case of housing I think it is safe to assume they did own it.



    Whenever local government gets reorganised a lot of land moves between councils by Act of Parliament and without the need for a written document. A change of ownership of unregistered land by statute does...
    27-06-2022, 09:40 AM
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