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Hi everyone,

Need some urgent advise so if anyone can help I'd really appreciate it?


So here is the situation and scenario...


Home owner with a mortgage with large area of land which is all part of my property

Applied for, paid and successful in planning application for a 2nd house to be built on that land.

So Planning Permission for a 2nd house has been granted.

Developer made us an offer to purchase the house and the land... we accepted the deal although it was 20k lower then we expected.

11 weeks later he is now telling us we need to split the deeds before he can progress further.

Originally he was a cash buyer but know I believe he is having a little financial difficulty. Again I believe he is now looking to purchase the house via a mortgage and then cash for the land... probably the reason why he wants two deeds to purchase from us? Or is he trying to cut costs in tax at our expense??


So the advise we need really is what are the downsides to this recent development in the deal... for us?

The main concerns in my mind (but not sure so that's why I am here) are:

A) do we pay capital gains if we do this?

B ) how long does this normally take? (to split the deeds)

C) what is the process we now take (who do we contact first? Current mortgage company then solicitor I presume? Anyone else? Who next?)


Any help and advise is really appreciated



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If you want to just sell the new house on its own I don't think you have any choice other than to split the deed. If you are selling the whole thing then it's fine to be on one title and the new owner can split it themselves if they want to sell separately.


You may be liable for tax when you split the title, which is probably why your buyer wants you to do it, but it is complicated and you should consult a tax expert to find out exactly what would be due as there are lots of potential tax reliefs that may apply here. It is probably going to cost you money just to find out.


Point is though I think it is unreasonable for your buyer to expect you to do this if it wasn't a clear requirement when he made the offer. There is no reason why you have to split it when he is buying the whole thing and he probably won't be taxed on it when he comes to split it.

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