Getting a mortgage when 2 flats and a shop are under 1 Freehold title

[dunc_macracey]

I own a property with a limited company containing 2 flats and a shop all held under one Freehold title.
I would like to take out a btl mortgage on one of the flats and I enquired to my solicitor about splitting the title deeds. I was told I can’t grant a new title to myself and so the only way to do this would be to set up a new limited company to buy the flat. This would incur £7.5k stamp duty fees, plus legal expenses.
I was wondering if anyone knows of another (and hopefully more economical) way of doing this please?
Thanks,
Duncan

 

[Joe Aston]

Hi Duncan,

I assume from your description of the property that it is currently debt-free? If so you could raise finance across the entire freehold on a MUFB basis (Multi-Unit-Freehold-Block). Because the borrowing would likely be low against the value of the whole block, the LTV (Loan-to-Value) percentage would be low and therefore you'd likely have access to some attractive rates. This would mean you could raise finance through your existing Ltd company as well.

There are other options regarding the setup of your LTD companies but feel free to give me a call to discuss or drop me an email at any point and I can come back to you. My number is 07841026375 and my email is [email protected]

Any other questions let me know!