What is title splitting? A solicitors comprehensive guide

Commercial Property Solicitors are often asked, “What is title splitting?” In simple terms, it is the process of dividing an existing registered freehold title into two or more new titles. This can arise in situations where a property owner wishes to sell part of their land, mortgage only part of their property, or deal with complex ownership structures. However, while the concept might sound straightforward, in practice title splitting can be legally complex and must be handled carefully within the jurisdiction of England and Wales.

Understanding the basics of title splitting

The primary question property owners ask is: what is title splitting in practical terms? At its core, it is an application to the Land Registry to create multiple titles from one parent title. For example, a large plot of land may be divided into smaller parcels for individual sale or development. Alternatively, a mixed-use building might require separate titles for clarity of ownership and financing purposes.

Common reasons clients consider splitting land title include:

• Sale of part: Selling off garden land or a development plot to a third party.
• Finance and security: Mortgaging only one part of a larger site, often required by lenders.
• Mixed-use property: Separating residential from commercial elements.

While it is possible to apply directly to the Land Registry, in practice, the Registry is reluctant to split titles without a clear legal transaction, such as a sale or transfer of part (via a TP1 form).

Title splitting versus transfer of part

It is important to distinguish between a formal title split and a transfer of part. In most real-world cases, the latter is the more efficient legal route. A transfer of part involves selling a defined portion of land out of an existing title, and the Land Registry then creates a new title automatically for the buyer. This process is usually smoother than asking the Registry to divide a title without an accompanying transaction.

Our experience has shown that Land Registry applications to pre-emptively divide titles are often rejected, as the Registry expects rights, covenants and boundaries to be properly documented through the transfer process itself.

Key legal considerations when splitting land title

Dividing land into multiple titles raises several important legal issues that must be addressed, including:

• Rights of way: Ensuring new titles have adequate access routes.
• Services: Establishing rights for water, electricity, gas and drainage.
• Covenants: Agreeing restrictions and obligations to protect the amenity of each parcel.
• Boundaries: Precise definition of the land being divided.

These matters cannot be created or imposed while land remains under the same ownership – they can only be properly granted when ownership is divided. For this reason, transfers of part are generally the preferred method of achieving what people often describe as “title splitting.”

Examples of when title splitting may apply

Here are some practical scenarios where property owners may need to consider splitting land title:

1. Development projects: A homeowner sells part of their large garden to a developer building new housing.
2. Commercial financing: A land owner may wish to split a residential building on the same title as a commercial building for lending purposes.

Each of these scenarios requires careful legal drafting to ensure that the new titles are usable, marketable, and compliant with both lending and regulatory requirements. For more technical guidance, the UK Government Land Registry guidance provides further detail on applications.

Case scenario: garden land sale

One client approached our team wishing to divide their freehold title before selling part of their land to a developer. Initially, they believed they needed to apply for a formal title split. Instead, we advised using a transfer of part (TP1 form). This approach allowed the sale to proceed efficiently, while the Land Registry automatically created a new title for the developer’s parcel. This avoided unnecessary delay and additional Land Registry scrutiny.

Insights from our solicitors

Based on our experience, here are some key takeaways:

• Applications for splitting titles without an associated transaction are rarely successful.
• Transfers of part are the most common and efficient way of creating new titles.
• Early legal advice helps avoid common pitfalls around covenants, access rights and service provisions.
• Lenders often prefer cleanly separated titles to reduce risk in financing arrangements.

Our Commercial Property team have vast experience in supporting property owners looking for support around title splitting.

Contact us for more information.

Benefits and challenges of title splitting

Property owners often weigh up the pros and cons of title splitting before proceeding. Below is a summary:

For many clients, the benefits outweigh the challenges, particularly when guided by experienced commercial property solicitors.

FAQs

What is title splitting in UK property law?

Title splitting in UK property law refers to dividing an existing freehold into multiple new titles, usually through a transfer of part (TP1 form) rather than a direct Land Registry application.

Is title splitting the same as a transfer of part?

No. While both result in new titles, a transfer of part is a legal transaction that prompts the Land Registry to create a new title. Title splitting without a transaction is not usually granted.

When should I consider splitting land title?

You should consider splitting land title when selling part of your land, refinancing only part of your property, or separating commercial and residential elements for investment purposes.

What form is used for title splitting?

The TP1 form (transfer of part) is most commonly used. This is submitted to the Land Registry when transferring part of a registered title.

What problems can title splitting cause?

Common issues include boundary disputes, failure to reserve adequate rights of way, and lender reluctance if titles are not clearly defined.

What should I do before proceeding with splitting the title?

Before moving forward with splitting a property title, it is essential to seek professional tax advice. Consulting with a tax specialist can help you identify the most tax-efficient approach for your circumstances, ensuring you avoid unnecessary liabilities and make informed decisions about the transaction.

This article was produced on the 2nd December 2025 for information purposes only and should not be construed or relied upon as specific legal advice.