Splitting existing Leasehold into 2 Leaseholds

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    Splitting existing Leasehold into 2 Leaseholds

    We own a house with ground floor and first floor flats on two separate leases. The remaining lease on both properties is 78 years. The present ground rent is £100 per flat.

    Recently, we obtained a planning permission from the local council and a consent from the landlord to convert the loft. This has been done recently. We have also received a planning permission from the council to split upstairs flat (first floor and the loft) in a manner to create:

    1 x One bedroom flat market value of £160 00
    1 x 2 bedroom maisonette market value £190 00

    1. What is the best way to proceed concerning lease as we intend to sell all three properties?
    2. Can the Freeholder object to further division of the property?
    3. Is it cost effective to amend the existing lease and create one new lease or is it better to create two new leases to accommodate the two resulting properties? We also intend to extend the current leases by 25 years to have better market value.
    4. Where do we stand with the SDLT?
    5. Also we are owners occupiers of the first floor flat (main residence), are we liable to pay capital gains tax on both properties (maisonette and the flat)?

    We need advice on these matters. Could someone please help?

    #2
    Hi,
    Have you considered buying the freehold title from the landlord?
    This would have been my first step...before doing anything. Your landlord(freeholder) can refuse anything IF the leases dictates this...

    You need to get detailed legal advice on all of the above,remember anything is possible,but what you are proposing to do is not normal conveyancing work,is fairly complicated,unless you know what you are doing!
    Have you got mortgages on the flats?
    Where abouts are you?

    Comment


      #3
      Hollyhead is right , you need to seek legal advice.

      The property belongs to the freeholder , and your leases may not allow you to subdivide or transfer part of a unit.

      If your existing leases are 78 years , you will have to extend before you can sell. But to do any structural work , you really should be buying the freehold.

      Comment

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