Splitting Title Deeds for Commercial Mortgage Needs

Our client, the resident and owner of a cottage and training centre reached out looking to raise funds against the training centre for a business loan.

The property, both the cottage and training centre were on one title deed. The client was looking to raise funds against the training centre only, to leave the residential property mortgage free on its own deed. We needed to find a way to split the title deed whilst providing the maximum loan amount required.

Our expert team set to work on finding a way to split the title without affecting the clients existing residential mortgage. In agreement with all parties involved, we helped the client transfer the training centre into a limited company. The cottage would remain in personal ownership. We fulfilled the client’s needs by helping to split the one title into two whilst providing the full loan amount of £350,000 against the training centre with an LTV of 47.8%. Needless to say, the client was overjoyed with the commercial loan outcome and now has a cottage which is completely mortgage free!