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How to Split Titles on a Freehold Block of Flats: A Step-by-Step Guide for Landlords

  • Writer: Andriy Pidopryhora
    Andriy Pidopryhora
  • Apr 7
  • 5 min read

If you’re a landlord who owns a freehold block of flats, you may be considering splitting the titles of your property. Whether you're looking to sell individual units, create leasehold titles, or simply increase the value of your investment, splitting the titles can be a smart move. However, it’s important to understand the legal process, potential challenges, and financial implications before proceeding.

In this comprehensive guide, we’ll walk you through everything you need to know about splitting the titles on a freehold block of flats, helping you make informed decisions about your property.


What Does It Mean to Split the Titles on a Freehold Block of Flats?

When you own a freehold block of flats, you typically own the building and the land it sits on. Each flat within the building is usually leased to individual tenants, but the property itself is freehold. Splitting the titles means dividing the building into separate legal units, so each flat has its own title. This is often done by creating individual leasehold titles for each flat while maintaining the freehold ownership of the building as a whole.


Why Would a Landlord Want to Split the Titles?

There are several reasons why you might want to split the titles on a freehold block of flats:

  1. Increase Property Value: When each flat has its own title, it may be easier to sell them individually. This can increase the value of the property compared to selling the building as a whole.

  2. Sell Flats Individually: If you want to sell individual units rather than the entire building, splitting the titles allows you to do this while retaining ownership of the freehold.

  3. Create Leasehold Units: Splitting the titles allows you to establish leasehold agreements with tenants, which can provide you with long-term rental income and greater control over the property.

  4. Attract More Buyers: Individual flats are often more attractive to buyers who want to own their property outright, rather than buying a share in a freehold block.



Learn how to split titles on a freehold block of flats. Our guide covers the process and the benefits of selling individual flats

Step-by-Step Guide to Splitting Titles on a Freehold Block of Flats


Step 1: Assess the Feasibility of Splitting the Titles

Before you start the process of splitting titles, it's essential to assess whether it's feasible for your property. Some factors that may affect this include:

  • Planning Permission: Depending on the property’s location and its existing layout, you may need planning permission to make certain changes to the property or its use. This could include alterations to communal areas or the creation of separate entrances.

  • Building Regulations: If you intend to make significant changes to the structure, such as adding separate utilities or changing the layout of the flats, you may need to ensure the property meets building regulations.

  • Existing Leases: If the flats are already leased, you will need to check the terms of the existing leases to see if they allow for the property to be split. You may need to negotiate with tenants to amend their leases.


Step 2: Consult with Legal and Property Experts

Splitting titles is a complex legal process, and it’s highly recommended that you consult with professionals who specialize in property law and conveyancing. A property solicitor can help guide you through the process and ensure that everything is done correctly.

They’ll assist with:

  • Drafting New Leases: If you’re creating leasehold titles, new leases will need to be drafted for each individual flat.

  • Legal Documentation: They’ll also ensure that all necessary documents are filed with the Land Registry to officially split the titles.

  • Dealing with Disputes: If you have tenants or co-owners, you may encounter disputes during the process. A solicitor can help you navigate these issues.


Step 3: Apply to the Land Registry

Once the legal requirements are in place, you will need to apply to the Land Registry to split the titles officially. This is a formal process that involves registering the new titles for each individual flat.

To do this, you will need to:

  • Provide Documentation: Submit plans of the property and any relevant documents, such as new leases or deeds of transfer.

  • Pay Fees: There are fees associated with registering a new title, which can vary depending on the value of the property and the complexity of the division.

  • Wait for Approval: The Land Registry will review your application and, once everything is in order, they will issue the new titles for each flat.

Step 4: Notify Tenants and Update Lease Agreements

If you plan to sell the flats or create leasehold arrangements for your tenants, you’ll need to update their lease agreements. Each tenant should be informed about the changes, and new leases should be drawn up that reflect the separate titles.

In some cases, tenants may be able to purchase the leasehold title to their flat, which can be a great opportunity for both parties. You may need to offer tenants the right of first refusal to buy their flat, depending on local laws.

Step 5: Marketing and Selling the Flats

Once the titles are split and the new lease agreements are in place, you can proceed with marketing and selling the individual flats. This step is similar to selling any other property but can be more straightforward because each unit now has its own legal title.

You may wish to consider working with a property agent who specializes in selling flats or leasehold properties. Alternatively, if you want to sell the flats quickly and hassle-free, selling to a cash buyer could be an excellent option. Cash buyers are often experienced in handling properties with multiple units and can complete the sale quickly.


Key Considerations When Splitting Titles on a Freehold Block

While splitting titles can be a great way to unlock the potential of your property, it’s essential to be aware of some key considerations:

  • Costs: The process of splitting titles can be costly, as it involves legal fees, Land Registry fees, and possibly costs associated with planning and building regulations.

  • Complexity: The process can be complex, especially if your building has many units or complicated legal agreements.

  • Tenant Rights: If your building is tenanted, make sure you are aware of tenant rights and how they may be affected by the changes to the property.

  • Long-Term Strategy: Consider how splitting titles aligns with your long-term property goals. Selling individual flats can bring in short-term profit, but you’ll lose control of the property’s freehold.


Why Consider Selling Your Freehold Block After Splitting Titles?

Once you've split the titles on your freehold block of flats, you may decide to sell individual flats or even the entire property. Selling to a cash buyer can streamline the process and save you time and effort. Here’s why selling to a cash buyer could be a great option:

  • Speed: A cash sale can often be completed much faster than selling through traditional routes.

  • No Fees: Selling directly to a buyer like Sell Building Fast means there are no agent fees or commissions, which can eat into your profits.

  • Simplicity: Selling to a cash buyer eliminates the complexities of negotiations, viewings, and financing approvals.

If you’ve already split the titles, this can make the sale even easier, as each flat now has its own legal status, ready to be sold individually or as part of the block.


Final Thoughts on Splitting Titles on a Freehold Block of Flats

Splitting the titles on a freehold block of flats can be a lucrative way to unlock the value of your property. However, it’s important to approach the process with a clear understanding of the legal, financial, and practical implications. Consulting with professionals and understanding the impact on your tenants is crucial for a smooth and successful transaction.

If you’re looking to sell your split titles freehold block or individual flats quickly and hassle-free, consider working with a cash buyer. At Sell Building Fast, we specialize in purchasing properties with multiple units, and we’re ready to make you a fair, no-obligation cash offer.

 
 
 

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