Title Splitting Property: A step by step guide

Introduction

When it comes to property investment, finding ways to add value and increase your return on investment is key. One strategy that has gained significant traction among savvy investors is title splitting. By dividing a single property into multiple legal titles, investors can often unlock hidden value, selling or refinancing individual units for a substantial profit.

In this guide, we will take a closer look at the process of title splitting property, its benefits and how you can effectively apply this strategy to your own property investments.

From identifying the right properties to understanding the legal intricacies, we’ll provide a comprehensive roadmap that helps you navigate each stage. Whether you’re a seasoned investor or new to the market, title splitting could be the game-changing strategy that helps you take your portfolio to the next level and it offers less risk than other short term lending options such as development finance.

However, before we get into the meat of the subject, we need to talk about Buying Below Market Value (BMV) as it is integral to the overall strategy/success of the title splitting procedure.

Buying Below Market Value (BMV)

One of the most effective strategies for property investors looking to make a quick and substantial profit is buying below market value (BMV) properties. This approach allows investors to purchase a property at a price lower than its true market value, instantly creating an uplift in equity, which can either be realised through resale or held as an investment.

What Does Buying Below Market Value Mean?

Buying below market value refers to purchasing a property for less than its open market valuation. For example, if a property’s market value is £250,000 and you manage to secure it for £200,000, you’ve essentially created £50,000 of equity right at the point of purchase. This margin between the purchase price and market value can be a game changer for investors.

How to Find Below Market Value Properties

There are several ways to find BMV properties. Often, these deals come from motivated sellers who need to sell quickly due to circumstances like financial distress, relocation or inheritance. Such properties are typically sold at a discount because the seller is prioritising speed over maximising the sale price.

1. Auctions: Property auctions are an excellent place to find discounted properties. While there is a degree of risk involved, buying from auctions can result in significant savings for investors who do their due diligence.
2. Repossession Sales: Banks or lenders may sell repossessed properties at a discount to recoup their losses quickly. These can be found through estate agents or specialised websites.
3. Direct to Vendor: This involves approaching property owners directly to negotiate a sale before the property hits the open market. Often, these vendors may be more flexible on price, particularly if they need a quick sale.
4. Off-Market Deals: These properties are not listed publicly and are often offered to a select group of investors at a discounted price. Building strong relationships with agents or other investors is key to accessing these opportunities.

The Advantages of Buying Below Market Value

The primary advantage of purchasing a BMV property is the immediate equity created at the point of purchase. This equity can be used to:

• Refinance: Investors can remortgage the property at its full market value to release funds, which can be reinvested in other properties.
• Resale for Profit: By flipping the property at its true market value, you can realise a quick profit, especially if minimal refurbishments are required.
• Reduce Risk: The lower purchase price acts as a buffer, reducing the risk of financial loss if property values decline slightly over time.

Things to Consider

While buying below market value can be highly rewarding, it’s essential to approach it with caution. Conduct thorough research and have the property professionally valued to ensure the discount is real (quite often, they are not). It’s also important to assess whether any repairs or refurbishments are required and factor these costs into your overall budget.

Title Splitting

Title splitting property is a powerful strategy in property investment that allows investors to unlock greater value from a property by selling individual units separately. This technique is particularly beneficial when dealing with buildings that contain multiple units, such as a block of flats or mixed-use buildings. The process involves purchasing the entire property under a single title deed and then legally dividing it into separate titles, allowing the investor to sell or refinance each unit individually for a higher total profit.

What is Title Splitting?

At its core, title splitting is about buying a property as a whole and splitting the ownership of the property into individual parts. This method is often used for buildings with multiple units, such as apartment blocks, but can also apply to houses that can be subdivided into smaller homes.

For example, if you were to purchase a building with five apartments for £400,000, and each apartment has a market value of £100,000, selling the units separately could yield £500,000 in total. This difference of £100,000 represents a significant profit generated simply by splitting the title and selling the individual units.

How Title Splitting Works

The process of title splitting is fairly straightforward in theory, but it requires a clear understanding of legal procedures and the property market. Here’s a simplified breakdown of the key steps involved:

1. Bulk Purchase: The first step is acquiring a property with multiple units. These are often bought as a single entity, meaning there is just one title deed for the entire building.
2. Legal Division: After the purchase, the title is legally divided, creating individual titles for each unit within the property. This often requires working closely with solicitors who specialise in property law to ensure the process is carried out correctly.
3. Selling or Refinancing: Once the title has been split, each unit can be sold separately, usually for a higher price in total than selling the property as a whole. Investors also have the option of refinancing each unit individually to release equity, which can be reinvested into other projects.

The Financial Benefits of Title Splitting

Title splitting can be an incredibly lucrative strategy for investors, particularly when purchasing properties in areas with high demand for individual units. The key financial benefits include:

• Increased Value: By selling units separately, the total combined value of the property often exceeds the original purchase price. This increase in value provides an immediate uplift for the investor.
• Flexible Exit Strategy: Investors can choose to sell all or just some of the units, allowing for a flexible exit strategy depending on market conditions.
• Higher Yield: For investors looking to hold onto the units as rentals, splitting the title can also lead to a higher rental yield, as each unit may rent out for more than its proportionate share of the overall property.

Risks and Considerations

While title splitting can yield high returns, there are some considerations to keep in mind:

1. Legal Costs: Splitting a title requires legal expertise, which adds to the initial costs. It’s important to factor in solicitor fees and conveyancing charges.
2. Mortgage Implications: If the property is financed with a mortgage, the lender may need to approve the title split, and there may be additional requirements or costs.
3. Time and Complexity: The process of title splitting can take time, and there may be local planning regulations or leasehold agreements that need to be considered before proceeding.

Why Don’t Sellers Use Title Splitting?

Title splitting is a lucrative strategy for property investors, as it enables them to sell individual units for a higher combined value than the original bulk purchase. However, one might wonder why more property sellers don’t use this method themselves before listing properties for sale. The truth is, while the concept of title splitting is well known among property investors, there are several reasons why the average seller avoids pursuing this approach.

Lack of Knowledge

The most common reason sellers don’t engage in title splitting is simply a lack of awareness. Most property owners, particularly those who are not experienced investors or developers, may not even know that splitting titles can significantly boost the value of their property. Many sellers are focused on traditional sales methods and may not have considered the potential to earn more by dividing their property into separate units.

For example, an owner of a building with multiple apartments might choose to sell the entire building in one transaction, unaware that splitting the property’s title into separate apartment deeds could yield a higher return. Without proper guidance from property professionals or advisors, sellers often miss out on the opportunity to maximise their profits.

Complexity and Legal Hurdles

Even for sellers who are aware of title splitting, the complexity of the process can be daunting. Title splitting requires a clear understanding of property law, local regulations, and planning permissions. The legal steps involved, such as working with solicitors and navigating local authority requirements, can be time-consuming and expensive. Sellers who want a quick and simple sale may shy away from the hassle, preferring to sell the property as a whole rather than dealing with the intricate paperwork and potential delays associated with title division.

Additionally, some properties may require extensive modifications to comply with building regulations, especially if they have been converted without the proper approvals. In these cases, sellers might prefer to offload the property quickly, avoiding the legal and financial responsibilities of rectifying outdated or illegal conversions.

Eagerness to Exit the Market

In some situations, sellers are eager to leave the property market, particularly when dealing with problematic properties. For example, a seller may have inherited a property that has outdated conversions or fails to meet current building standards. Rather than investing time and money to resolve these issues and complete the title splitting process, they may prefer to sell the property as-is, accepting a lower price in exchange for a quick sale.

Another common scenario is where a seller has run into financial difficulties. In this case, they might be more focused on generating immediate cash flow rather than optimising the sale for maximum profit. The additional cost and complexity of splitting the title may simply not be feasible for a seller in need of fast liquidity.

Risk Aversion

Many sellers also avoid title splitting due to risk aversion. The strategy requires a level of confidence in the property market and the ability to handle unexpected costs or delays. Investors typically have the experience and resources to navigate these challenges, but for the average seller, the risks might seem too high. In cases where the local market is unstable, sellers might prefer to accept a lower but guaranteed price rather than taking on the uncertainty of selling individual units.

By understanding the reasons why most sellers avoid title splitting, property investors can spot opportunities to maximise value where others may not. This section gives insight into the mindset of sellers and why investors like those working with Breeze Capital can profit from overlooked strategies.

Limited Competition

One of the most significant advantages for investors interested in title splitting is the relatively low level of competition in the market for multiple-unit properties. While the demand for single-family homes and individual flats is high, the market for purchasing entire buildings—such as blocks of flats or multi-unit commercial properties—is much smaller. This creates a unique opportunity for savvy investors who know how to unlock the hidden value in these types of properties.

Smaller Buyer Pool

The average homebuyer is typically looking for a single property, either a house or flat, that suits their personal or family needs. The process of buying an entire building with multiple units is far more complex and requires greater financial resources, which naturally limits the number of potential buyers. Most individual buyers are not in the market for large-scale purchases, and even many investors tend to focus on single properties that require less capital and management effort.

This smaller buyer pool works to the advantage of investors who are prepared to take on larger properties. With fewer competitors bidding for multi-unit properties, the prices are often lower than they would be if sold as individual units. This reduced competition not only gives investors a better chance of securing these properties but also allows them to negotiate more favourable terms with sellers who may be motivated to sell quickly.

Opportunities for Value Creation

Because the market for multiple-unit properties is less crowded, investors who are knowledgeable about title splitting can acquire these buildings at prices significantly below the total value of their individual units. By purchasing a block of flats or a similar property, investors can take advantage of economies of scale—buying the entire building at a discount and then selling each unit separately at full market value. This process can result in a substantial profit margin, especially in areas where there is high demand for individual flats but fewer buyers for entire buildings.

For example, an investor might purchase a block of five flats for £400,000. If each flat is worth £100,000 when sold individually, the investor stands to make a total of £500,000 after title splitting. The £100,000 difference represents the value created through title splitting, which would not be possible without the limited competition in the multi-unit property market.

Niche Investment Strategy

Title splitting remains a niche investment strategy because it requires both financial resources and specific knowledge of property law, local regulations, and market demand. Many investors shy away from multi-unit properties due to the perceived complexity of managing multiple tenants or handling the legal aspects of splitting titles. As a result, the pool of investors willing to engage in title splitting remains small, leaving more opportunities for those who are prepared to put in the time and effort.

At Breeze Capital, we understand the nuances of the property market and are well-equipped to help investors navigate the complexities of title splitting. With fewer competitors in this space, we can help you identify and capitalise on opportunities that others may overlook, allowing you to maximise the value of your property investments.

Less Volatility in the Market

Another benefit of operating in a market with limited competition is the relative stability of prices. While the single-family home market can experience sharp fluctuations due to changing demand, the multi-unit property market tends to be more stable because it caters to a different type of buyer. This stability reduces the risk for investors and provides more predictable opportunities for profit, especially when combined with a strategy like title splitting.

Perfect Timing

The property market constantly evolves, and certain factors make now an ideal time for investors to explore opportunities in title splitting. One of the key drivers of this trend is the changing landscape of property lettings. Many properties that were converted into flats or multi-unit buildings 20 to 40 years ago are now reappearing on the market, offering lucrative opportunities for savvy investors.

Increased Regulation in Property Lettings

In recent years, the government has introduced stricter regulations for landlords, particularly in areas such as safety and tenant protection. While these regulations are necessary to ensure safe and secure housing, they have made property management more complex and time-consuming. For landlords who converted properties decades ago, keeping up with these new legal requirements can be challenging. Many of these landlords are simply not aware of the modern compliance demands, such as obtaining gas safety certificates or energy performance certificates (EPCs).

This growing burden of regulatory compliance has led some long-term landlords to seek an exit from the property market. Faced with the hassle of bringing older properties up to standard and the increasing costs associated with rental property management, they may be more willing to sell their multi-unit buildings at a discount. This creates a perfect window for investors to step in, acquire these properties, and unlock value through title splitting.

Outdated Conversions

Many of these multi-unit properties were converted when building standards were less rigorous. While the properties may have been legally converted at the time, the rise in regulations has left many of them in a grey area, with landlords facing fines or remedial work to meet modern standards. These issues add to the motivation for some landlords to offload their properties, especially those who may be retired or who lack the resources to carry out the necessary upgrades.

This situation presents a significant opportunity for investors. By purchasing these properties, you can not only secure them at below-market value but also capitalise on the increasing demand for rental properties that meet current standards. After acquiring such properties, investors can choose to either update them to meet modern requirements or sell them off as individual units following a title split, all while benefiting from the initial discounted purchase price.

Market Dynamics Favouring Investors

As more landlords exit the market due to these regulatory pressures, the supply of multi-unit buildings for sale increases. When combined with the limited competition for such properties, this results in more favourable pricing for investors. For those who understand the benefits of title splitting and are willing to take on the challenge of modernising older properties, this period of market transition offers a rare opportunity for profit.

Moreover, the rising demand for high-quality rental properties means that once these properties are brought up to current standards, they can fetch premium prices on the open market. Whether sold as individual flats or retained as high-quality rental units, the potential for a solid return on investment is substantial.

By capitalising on this period of increased regulation and the changing market dynamics, investors have a unique chance to acquire discounted multi-unit properties and create substantial value through title splitting. At Breeze Capital, we are here to support you every step of the way, helping you navigate the complexities of the property market and seize the opportunities available at this perfect moment in time.

Types of Properties to Split

Title splitting is a versatile investment strategy that can apply to a wide range of property types, not just residential buildings. This technique allows investors to unlock significant value by purchasing properties in bulk and selling off individual units at a higher combined value. Whether you’re dealing with residential, commercial, or mixed-use properties, the potential for profit through title splitting is substantial. Let’s explore some of the common property types that are ideal for this strategy.

Residential Properties

One of the most common types of properties to split is a residential building, such as a block of flats or apartments. These properties are attractive to investors because each unit can be sold individually after the title is split, often yielding a higher combined value than selling the entire building as a single entity.

For example, purchasing a block of flats with 10 units allows you to legally divide the ownership of each flat by splitting the title. Once the title is split, each flat can be sold or rented individually, maximising the total value. Residential properties are particularly appealing because of the strong demand for housing, making it easier to sell or lease individual units once they have been separated.

Mixed-Use Properties

Title splitting is not limited to residential buildings. Mixed-use properties, which combine residential, commercial, and retail spaces, also present excellent opportunities for this strategy. These types of buildings often consist of shops or offices on the ground floor with flats or apartments on the upper levels.

By splitting the title, you can divide the commercial and residential units into separate entities. This flexibility allows investors to sell or lease the different parts of the building independently, often increasing the total return on investment. For example, the ground-floor retail space can be sold to a business owner, while the residential units can be sold to individual buyers or rented out to tenants. This approach enables investors to cater to different segments of the market, increasing the potential for higher profits.

Land Title Splitting

Another form of title splitting involves land transactions, where large plots of land are divided into smaller parcels. This is particularly common in rural areas or in suburban developments. Investors can purchase large areas of land and then apply for planning permission to divide it into multiple smaller plots. These smaller plots can then be sold individually to developers or private buyers, often at a significantly higher combined value than the original purchase price of the entire plot.

Land title splitting requires a solid understanding of local planning regulations and market demand for smaller parcels. However, for investors with the expertise and resources to navigate these complexities, it can be a highly profitable strategy. With the increasing demand for housing and commercial development, splitting land titles can open up new opportunities for both immediate sales and long-term investments.

Commercial Properties

Commercial buildings, such as office blocks or industrial units, can also be subject to title splitting. In this case, the individual offices or units can be sold or leased to different businesses after the title is split. This method allows for greater flexibility in selling or leasing parts of the property, particularly in areas where demand for commercial space is high.

Additionally, by dividing the property into smaller units, investors can attract a broader range of buyers or tenants, making it easier to sell or lease each portion of the building. This approach can be particularly useful in multi-tenant office buildings, where businesses prefer to lease smaller, more manageable spaces.

In summary, title splitting is a versatile strategy that can apply to various property types, including residential, mixed-use, commercial, and even land. By understanding the potential of each property type, investors can unlock hidden value and increase their returns. At Breeze Capital, we offer guidance and support to help you navigate the complexities of title splitting and maximise your investment potential.

This section showcases the versatility of title splitting across different property types, aligning with Breeze Capital’s focus on assisting investors in identifying and capitalising on these opportunities.

Two Approaches to Title Splitting

Title splitting is a powerful property investment strategy, offering investors multiple ways to generate significant profits. There are two main approaches to title splitting that investors commonly use. Both methods can result in substantial financial gains, but they differ in terms of the time, effort, and level of value added during the process. Below, we outline the two primary approaches to title splitting and how they work.

Approach 1: Buy in Bulk, Split the Titles, and Sell or Refinance

The first approach to title splitting is straightforward: investors purchase a property in bulk, such as a block of flats, a mixed-use building, or a large plot of land. Once the purchase is complete, the investor splits the titles, creating individual ownership for each unit or section. These individual units can then be sold separately, often at a higher combined value than the original bulk purchase price.

For example, if an investor buys a building with 10 flats for £1,000,000 and each flat is worth £150,000 when sold separately, the combined total value would be £1,500,000. By splitting the title and selling each flat individually, the investor can realise a £500,000 profit.

This approach can also be used to refinance instead of selling. After splitting the titles, the investor may choose to refinance each unit individually. Refinancing can offer increased borrowing potential, allowing the investor to release some of the equity created by splitting the title. This option is particularly appealing for those looking to retain the property while leveraging the increased value for further investments.

The main advantage of this approach is that it involves minimal additional work. Since the focus is on splitting the title rather than altering the property, the process can be relatively quick, with profits realised through the sale or refinancing of individual units.

Approach 2: Add Value Through Refurbishment, Then Split and Sell or Refinance

The second approach to title splitting involves adding value to the property before splitting the titles. Investors who choose this method aim to maximise their profits by enhancing the property’s condition or appeal, typically through refurbishment.

For example, if an investor buys a block of 10 flats that are in need of modernisation using a property refurbishment loan , they can refurbish each unit before splitting the title. The renovation process increases the overall value of the property, allowing the investor to sell or refinance the individual units at a much higher price than in their original condition.

Let’s say an investor purchases a block of flats for £1,000,000, and after £200,000 worth of renovations, the value of each flat increases from £150,000 to £200,000. After splitting the title, the combined value of the 10 flats could be £2,000,000, resulting in a potential profit of £800,000.

This approach typically requires more time, effort, and capital upfront but can significantly increase the overall returns. It is ideal for investors who have experience with property renovations or who work with a team of professionals to manage the refurbishment process.

By adding value to the property before splitting the titles, investors not only increase the selling price but also create more attractive assets for potential buyers or refinancing opportunities. This method offers a higher return on investment compared to simply splitting the titles without adding value, making it a popular choice for seasoned property investors.

Which Approach is Right for You?

The choice between these two approaches depends on your investment goals, resources, and expertise. If you prefer a quicker, less intensive process, the first approach of buying in bulk and splitting the titles may be more suitable. On the other hand, if you have the skills and capital to renovate and add value, the second approach offers higher profit potential.

At Breeze Capital, we can help guide you through both methods of title splitting, offering flexible finance solutions tailored to your investment strategy. Whether you’re looking to maximise value through renovation or prefer a faster turnaround, our team is here to support your property investment goals.

This section breaks down the two primary methods of title splitting, offering investors a clear understanding of their options and how Breeze Capital can assist them.

Real-Life Example of Title Splitting

To illustrate how title splitting works in practice, let’s look at a real-life scenario where an investor was able to generate a significant profit through this strategy. The example demonstrates how purchasing a mixed-use property, splitting the titles, and either selling or refinancing the units can lead to substantial financial gains.

The Property Purchase

An investor attended an auction and spotted an opportunity to buy a building that contained both commercial and residential units. The property consisted of 10 units in total—5 commercial spaces on the ground floor and 5 residential flats on the upper levels. The investor successfully purchased the entire building for £700,000, which was below its estimated market value when considering the potential of title splitting.

The condition of the building was reasonably good, but there was room for improvement in both the commercial and residential units. However, the investor’s strategy did not solely rely on renovating the property but instead focused on splitting the titles and either selling or refinancing each unit individually.

Splitting the Titles

Once the property was purchased, the investor worked with legal professionals to split the titles, creating separate ownership for each of the 10 units. By doing this, the investor unlocked more value because individual units generally attract higher sale prices than bulk purchases of mixed-use properties. This is particularly true for properties that contain both residential and commercial spaces, as they appeal to different types of buyers.

Revaluation and Profit Potential

After the titles were split, the individual units were valued separately. The 5 commercial units were appraised at £120,000 each, while the 5 residential flats were valued at £150,000 each. This brought the total combined value of the property to £1,350,000.

By splitting the titles, the investor had increased the overall value of the property by £650,000 compared to the original purchase price of £700,000. This created a significant potential profit of £650,000.

Sale or Refinance

The investor then had two primary options. The first option was to sell each unit separately, allowing them to realise the full profit by capitalising on the increased value from title splitting. In this case, the total sale of all 10 units would have generated £1,350,000, yielding a net profit of £650,000 after subtracting the original purchase price.

The second option was to refinance each unit individually. By refinancing, the investor could have leveraged the new, higher valuations to release equity, which could be used for further investments or improvements. Refinancing might not result in an immediate lump sum like selling, but it allows investors to continue earning rental income from the property while benefiting from the increased value.

Why This Strategy Works

This example highlights how title splitting can lead to impressive returns for property investors. By understanding the market and leveraging legal frameworks to separate ownership, investors can significantly enhance the value of a property without the need for extensive renovations.

At Breeze Capital, we can support investors in financing these types of deals, providing flexible options for both purchasing and refinancing properties after title splitting. Whether you are new to title splitting or experienced in the strategy, we are here to help you unlock the full potential of your property investments.

This real-life example outlines a clear, practical application of title splitting, illustrating the financial benefits and the options available to investors, including refinancing or selling.

Maximising Value with Refurbishments

While title splitting alone can significantly increase the value of a property, refurbishing the property can maximise your returns even further. By making targeted, cost-effective improvements to each unit after splitting the titles, investors can enhance the marketability and overall value of the property, increasing both potential sale prices and refinancing opportunities.

The Power of Refurbishment

Refurbishing a property doesn’t always require large-scale or costly upgrades. In fact, even light renovations can have a substantial impact on value. For example, by investing £8,000 to £12,000 per unit, investors can make key improvements such as updating kitchens and bathrooms, improving energy efficiency and freshening up the interiors with modern finishes. These relatively small investments can lead to significant increases in the value of each unit, further boosting the overall profitability of the property.

How Refurbishments Boost Value

Let’s consider an example. After splitting the titles on a property, an investor owns several individual units. Initially, each unit is valued at £130,000. By spending £10,000 refurbishing each unit, the investor can potentially increase the value of each unit to £160,000. Across 5 units, this translates to an additional £150,000 in value (£30,000 uplift per unit multiplied by 5 units).

This increase in value isn’t just theoretical—updated properties often sell faster and at a premium, especially in markets where buyers are looking for modern, move-in-ready homes. Investors may also find it easier to refinance the newly refurbished units at a higher loan-to-value ratio, allowing them to extract more equity to fund further investments.

Strategic Refurbishments for Maximum Return

It’s important to note that not all refurbishments provide the same return on investment (ROI). Investors should focus on improvements that have the most appeal to buyers and tenants. Some of the most effective upgrades include:

• Kitchen and bathroom upgrades: These are often seen as the most valuable rooms in a property. New appliances, fixtures, and modern cabinetry can greatly improve the appeal.
• Energy efficiency improvements: Adding features like double glazing, insulation, and energy-efficient lighting not only enhances the property’s eco-credentials but also lowers utility costs for future occupants.
• Aesthetic upgrades: Fresh paint, new flooring, and modern lighting fixtures can make units feel new and well-maintained, attracting higher offers from buyers.

Maximising Returns Through Refinancing

Once refurbishments are complete, investors have the option to refinance the property based on its increased value. This strategy allows you to release equity from the property, which can then be reinvested into future projects or used to pay down existing debts.

For example, if the newly renovated units are reappraised at £160,000 each, refinancing at 75% of this value could release up to £120,000 per unit. Across multiple units, this provides a significant cash influx, giving investors the liquidity they need to pursue additional investments while still retaining ownership of the income-generating property.

The Breeze Capital Advantage

At Breeze Capital, we understand the importance of strategic refurbishments in maximising property value. We work with investors to provide the necessary funding for both property purchases and light to heavy refurbishments, ensuring you have the capital needed to unlock the full potential of your investment. Our lending options allow you to tailor finance that fit your specific project needs, whether you’re looking to sell or refinance after enhancing the property.

By combining title splitting with a property refurbishment loan to improve the value of the property, investors can substantially increase their returns, making this a powerful strategy for those looking to grow their property portfolios efficiently and effectively.

Land Title Split

Understanding Land Title Splits

A land title split is a strategy employed by property developers to divide a large plot of land into smaller, individual parcels. Each parcel can then be sold separately, potentially yielding a significant profit. This is a common tactic used to maximise returns on a property investment.

A Classic Example: Dividing a Single-House Plot

Imagine a property developer acquiring a large plot of land with a single house on it. Instead of selling the entire property as is, the developer might decide to split the land into five separate parcels. Each parcel could then be developed into a new building, potentially a detached house, semi-detached house, or even a flat.

The Benefits of Land Title Splits

There are several advantages to this strategy:

• Increased Profit Potential: By dividing the land into smaller parcels, the developer can sell each parcel individually, potentially at a higher price than if they were to sell the entire property as a single unit.
• Reduced Risk: Selling multiple properties reduces the risk associated with relying on a single sale. If one property doesn’t sell, the developer still has the others to rely on.
• Flexibility: Land title splits offer greater flexibility in terms of development. The developer can choose to develop each parcel differently, tailoring the properties to meet the needs of different buyers.

The Role of Bridging Finance

Bridging finance plays a crucial role in enabling property developers to execute land title splits. This type of short-term loan can provide the necessary funds to purchase the land, obtain planning permission, and carry out the necessary development work.

Bridging Finance from Breeze Capital

At Breeze Capital, we specialize in providing bridging finance solutions to property developers. Our flexible approach allows us to tailor our loans to meet the specific needs of each project. We understand that land title splits can be complex, and we’re here to support you every step of the way.

Key Considerations for Land Title Splits

Before embarking on a land title split, it’s important to consider several factors:

• Planning Permission: Obtaining planning permission for each parcel can be time-consuming and expensive. It’s essential to assess the feasibility of development before proceeding.
• Market Demand: Ensure that there is a demand for the type of properties you plan to develop. Conduct market research to identify potential buyers.
• Costs: Factor in the costs associated with dividing the land, obtaining planning permission, and carrying out the development work.

Conclusion

Land title splits are a proven strategy for property developers looking to maximise their profits. By dividing a large plot of land into smaller parcels, developers can sell each parcel individually, potentially at a higher price. Bridging finance from Breeze Capital can provide the necessary funding to make this strategy a reality.

Further reading

Freehold & Leasehold property

UK Planning permission laws

Land Registry

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