Granting leases when you own the freehold
I own the freehold of a two storey workshop and,under the permitted development rules, have converted the first floor into two flats. My intention was to grant a 125 year lease to each of the flats then re-mortgage them as buy-to-lets.
However I now find that the Land Registry won't allow separate titles for the flats as I own the freehold.
It has been suggested that I need to transfer the freehold to a management company (owned by me) who would then grant the leases. However that transfer would be a 'transfer of assets' as would the grant of leases so would presumably attract the attention of HRMC for Capital Gains/Stamp Duty etc
Effectively all I am trying to do is split a building owned by me into 3 parts, all still owned by me.
I can't be the only person to face this problem but solicitors refer me to accountants who refer me back to solicitors!
Anyone have any thoughts or preferably tell me if you have done this
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