While a large garden is appealing to many home buyers, they require a lot of maintenance. If you don’t have the time or energy to spend taking care of it, selling part of your garden could earn you some money from land you’re otherwise not using. However, the relevant conveyancing processes can be tricky to get your head around. In this guide, we explain everything you need to know about selling part of your garden.
What is a Transfer of Part?
You will need a land registry document known as a Transfer of Part of Registered Title (TP1) in order to sell part of your garden. A Transfer of Part allows you to separate part of your land from your title in order to sell it to someone else.
Do I need my Mortgage lender’s consent to sell part of my land?
Yes – by selling part of your land, you reduce your property’s value to an extent and your mortgage lender gets no benefit from the sale. Mortgage lenders are unlikely to approve a transfer of land that will drastically reduce the value of the property, and they may ask you to pay back a percentage of your mortgage upfront before allowing you to do so.
What can I do if my mortgage lender does not consent?
When you approach your mortgage lender to asking about selling part of your garden, they will respond with either outright approval, conditional approval, or a refusal. If they give conditional approval, they could ask you to repay part or all of your mortgage to be granted permission.
If they refuse entirely, you don’t have to give up. You can instead remortgage with a lender who will grant you a remortgage not including the land that you wish to sell. If this is the case, speak to our sister company Starck Uberoi Wealth on 020 8037 4027; their team of independent mortgage advisors can help you find the perfect new mortgage for you.
When it comes to teh legal element of selling your garden, we should also mention that Starck Uberoi Solicitors and approved by most of the UK’s mortgage lenders. Visit our mortgage lenders panel page for a full list.
Mortgage Lender Panels
Trusted Residential Conveyancing
We’re a six-partner practice accredited by the Law Society’s Conveyancing Quality Scheme (CQS) with £3 million professional indemnity insurance. Our quality service is recognised by our admission onto the residential conveyancing panels of major mortgage lenders, including bridging loan specialists.
I intend to develop part of my garden. Do I need planning permission before splitting the title and selling part of my land?
You are not required to obtain planning permission on your property before obtaining a transfer of part; however, doing so will raise the value of the land you’re selling. While this does mean you could sell your land for more, be aware that raising the value of the land over a certain threshold may mean that Stamp Duty will be payable.
What documents do I need for a Transfer of Part?
The first thing you will need is a scale drawing of the proposed changes completed by a surveyor. The surveyor will then send this to your title split solicitor who will check that the intended changes abide by land registry requirements. This drawing will have to include information on:
- Access to the land
- The land’s access to utilities if the transfer involves a property
- Boundaries separating the two properties (and who is responsible for maintaining these boundaries)
Additionally, your title split solicitor will inform you whether the new property will require any easements. For example, the buyer of the land may require right of access across your property to get to it, or if a property was part of the transfer they may need to be connected to utilities that are on or under your land. You will need to respect these easements once they are in place.
If you need a valuation of the land (which will often be required by HMRC if the land is being sold to a limited company) we would recommend you speak to a RICS (Royal Institution of Chartered Surveyors) surveyor to provide an accurate evaluation. Their fees may vary from around £300 to roughly £1000.
How much will it cost to sell part of my garden?
The fees you will need to pay include:
- Conveyancing Solicitor’s fees: You will need a conveyancing or title split solicitor to check that the split abides by land registry requirements and to register the new title. Our fees start at £1000 plus VAT and will depend on the value of the land being sold.
- Surveyor’s Fees: Surveyors can charge around £300-£600 to produce the scale drawings you will need.
- Mortgage: Your mortgage lender may require you to pay back some or all of your loan before agreeing to a transfer of part. They may also charge admin fees, and demand you pay for a surveyor to come and check the changes to the property. Admin fees typically range between £50 and £350.
Will I have to pay tax?
Usually, you will be exempt from capital gains tax on selling part of your garden due to “relief on disposal of private residence” – to put it simply, this means that the home your garden is attached to must be (or have previously been) your residence at some point, and the land you are selling must only have been used for your “enjoyment.” If this is not the case, the sale may be subject to capital gains tax.
Additionally, as previously mentioned, your buyer may need to pay Stamp Duty Land Tax if you are selling the land for at least £40,000. You can read more about Stamp Duty paid after a title split in our blog Flat Conversion and Stamp Duty
How Starck Uberoi Solicitors can help
Our specialist title split solicitors have been accredited by the Conveyancing Quality Scheme (CQS) and can assist you with selling part of your garden. We offer a fast conveyancing service and work on a fixed-fee basis, so you can feel confident trusting us to handle your conveyancing matter efficiently.
For more information, please see the title split page on our website. For an appointment with one of our ctitle split solicitors, speak to us on 020 8840 6640 or email solicitor@starckuberoi.co.uk.
Our offices are located in Brentford, Richmond, Ealing, London Victoria and Canterbury, all of which are easily accessible via public transport. Our partner, Raminder Singh Uberoi, can also provide a notary public service at any of our London offices.
Our founder and Conveyancing Partner, Raminder Uberoi was featured in Property and Homes with this article.
What is a Title Split and How Can it Make You Money?
Read the web based version on Celebrity Angels