Changing boundaries?

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    Changing boundaries?

    I own two adjacent properties, one is my home and the other is rented out. I would like to take half of the garden from the rental and combine it with my garden. Can I do this without ‘buying’ the land from myself? I would also inform the Land Registry of the new boundaries.

    #2
    If the properties are subject to mortgages you will need to discuss with the lenders as to what you are indeed proposing given that the land as its own intrinsic value and the transfer of land might have an adverse or enhanced effect depending on the property in question. I would suggest you consult with a solicitor regarding this matter as it is not as straight forward as you might think.

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      #3
      Are you planning to sell either of them? If not just move the fence.

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        #4
        Originally posted by royw View Post
        Are you planning to sell either of them? If not just move the fence.
        There is a possibility of selling some of the garden land at a later date.

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          #5
          There is no need to do anything. You are not changing the boundary of your land only the position of a typical boundary feature within it. If the property is registered under two different titles the dividing line between the two will not change. There is no need to inform any mortgage lender as their security is not affected.

          However, note the following:

          If the let property currently has a tenant you will need to get the tenant to surrender the part of the garden he is losing.

          Make sure that any future tenancy agreement excludes the part taken.

          If you come to sell one or other of the properties without moving the fence back you must tell your conveyancer so that if the let poperty is sold the part removed is not included and if the other one is sold it is included.

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            #6
            Lawcruncher: if I was to sell the rental property, or part of its garden, would I legally need to change the boundary first?

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              #7
              Originally posted by Thyrsis View Post
              Lawcruncher: if I was to sell the rental property, or part of its garden, would I legally need to change the boundary first?
              No. The change is made on the sale. There is a special form of transfer for a sale of part. The part removed will get a new title number. The retained part keeps its title number and the land removed is shown edged green on the title plan.

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                #8
                Originally posted by Lawcruncher View Post

                No. The change is made on the sale. There is a special form of transfer for a sale of part. The part removed will get a new title number. The retained part keeps its title number and the land removed is shown edged green on the title plan.
                (silly question removed)

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                  #9
                  if I was to sell the rental property, or part of its garden, would I legally need to change the boundary first?
                  Capital gains tax is due when any part of a rented property is sold, although no capital gains tax is due if part of the garden of a main residence is sold.
                  It may be sensible to consider whether the garden land behind the rental house is added to the title for the main residence, which may entail an application to transfer part of the rental title with a request to Land Registry to add that land to the original residential title rather than give it a separate title number.

                  Then if you can sell off the larger area of garden in the future it is part of your main residence and free of CGT.

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                    #10
                    It is a interesting idea guys.

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                      #11
                      Thank you Pilman, that sounds like a good idea.

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                        #12
                        Originally posted by Thyrsis View Post
                        Thank you Pilman, that sounds like a good idea.
                        To be frank I am not sure it will actually achieve anything. When it comes to tax what is important is the history of each part of the land and not a question of which part is registered under which title. Equally, whether any part of a holding comes within the curtilage of a dwelling does not depend on how the land is registered.

                        Apart from that, you may have difficulty persuading the Land Registry. I do not know the Registry's current practice, but when I was in practice they would only amalgamate titles on a dealing or for a good reason. A good reason would be where a developer had acquired a site piecemeal which he intends to sell off in plots. Life is easier for everyone, including the Registry, if the estate is registered under a single title. So far as the Registry are concerned, moving land from one title to another where both titles have the same proprietor serves no purpose.

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                          #13
                          Equally, whether any part of a holding comes within the curtilage of a dwelling does not depend on how the land is registered.
                          The word "curtilage" is used when the area available for Permitted Development Rights for additional out-buildings needs to be assessed, but the word "garden" is used when additional land with that existing use is added to a residential property by buying or transferring an existing adjacent garden area to be used by the owner of the now larger property that is part of a main private residence.

                          The Principle Private Residence relief offered by HM Revenue & Customs when dealing with Capital Gains Tax does not use the word curtilage, which has a more limited legal meaning than the description "garden".

                          Obviously the person considering the acquisition of extra garden land with the ultimate intention of selling it with part of the original garden may fall foul of the GGT rules regarding such matters, but I thought it worth mentioning after reading this posting.

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