FINANZE® Title Split Finance: The Strategy, Story and Structure Behind One of Property’s Most Powerful Funding Models.

Finanze began as a brokerage, but it was never meant to think like one.

When Finanze launched in August 2021, it began as a brokerage. From the start, I knew I did not want it to feel like a normal one.

The problem with broking is that, much of the time, everyone has access to the same products. Everyone says they have the best service. Everyone says they are fast. Everyone says they can get the deal done. In reality, the conversation often collapses back to rate.

That was not the business I wanted to build. I wanted Finanze to be more personal, more strategic and more useful.

I wanted us to spend time understanding a client’s property strategy, not just the product they thought they needed. I wanted us to think about accounting, tax, legal structure, exit routes and opportunity, not simply act as a human aggregator of lending options.

To use a travel analogy, most finance brokers are trying to get everyone onto the same plane. I wanted to build something closer to first class. Same airport, same destination, very different experience.

The problem that started the idea.

In the early days, I was getting a lot of semi-commercial enquiries. That partly came from spending time around the SSAS pension community. One issue kept appearing. A SSAS could own the commercial part of a property, but not the residential element.

That created a problem. Clients often had funds sitting inside their SSAS, but if the property was mixed-use, they could not deploy those funds neatly against the whole building. They needed a cleaner way to separate the commercial and residential parts.

The question was simple. Why not split the title?

If the commercial part and the residential part could be separated, the SSAS could acquire the commercial element while outside funds dealt with the residential portion. On paper, that sounded obvious. In practice, it was not.

The owner of the building needed to apply to HM Land Registry to grant new titles. That meant the property had to be purchased first. Until the titles were split, the property was still semi-commercial. And if it was still semi-commercial, the SSAS could not buy it.

So the real question became this: how do you buy the building first, split the titles, and then sell the commercial element into the pension structure?

“We are not in the business of buying houses for other people.”

I started speaking to lenders. I laid out the opportunity. I explained the structure, the legal considerations, the accounting points and the valuation logic. I even suggested how the pricing could work.

The response was not encouraging. One line stuck with me: “We are not in the business of buying houses for other people.”

That was the objection. But I kept coming back to the same point. If the split value could be supported by a valuation, and the process required a legal exercise rather than speculative development, why could a lender not lend against that enhanced value?

Around 200 lenders said no. Then a small family office took the time to understand it. They saw that value could be created before completion if the structure, valuation and legal process were all properly aligned.

From semi-commercial title splits to MUFB title splits.

I started talking about the strategy more widely. That was when another version of the strategy appeared. What if the title was split across the individual self-contained flats in a multi-unit freehold block?

Developers do this when they build apartment blocks. Landowners do it when they split land. Farmers do it when they sell off barns. Why could the same thinking not apply to a larger multi-unit freehold block?

That opened up a more powerful version of the idea. Fewer people can buy a large block as one asset. Many more people can buy individual flats. If the valuation supported that difference, the uplift could be significant.

One early transaction completed on a five-flat MUFB, exited from the facility six months later after the new titles were issued, and the numbers showed why the strategy mattered.

Purchase price: £470,000. Split value: £800,000. Net loan: £470,000. In other words, 100% of the purchase price.

Another major case involved thirty-one flats in Pembrokeshire, a purchase price of £1.8 million, a split value of £2.6 million and a net loan of 90%.

That transaction changed the way I thought about the opportunity. It showed that this was not just a clever finance idea. It was a strategy that could materially change a client’s asset position when executed properly.

What is title split finance?

Title split finance is funding designed around the value created when one property is split into separate legal titles.

In simple terms, a borrower purchases a property that currently sits under one freehold or one broader title. After completion, the borrower’s legal team submits the required pack to HM Land Registry so that new leasehold or freehold titles can be issued.

Once those titles exist, the property can often be valued and exited differently. A large multi-unit block may have one value as a single asset, but a higher aggregate value when each self-contained unit can be sold or refinanced separately.

The finance challenge is timing. The uplift is only formally unlocked after the legal process completes, but the borrower needs the money before completion to buy the asset. FINANZE® Title Split Finance is designed to address that timing gap by assessing lending against supported split value, subject to underwriting and the legal structure.

Why title splitting can create value.

Title splitting works because the buyer pool changes.

A single buyer for a large MUFB may be limited to investors with enough capital, appetite and experience to take on the whole block. Once the units are split, each flat may be capable of being valued, sold or refinanced as an individual property.

That can create a higher aggregate value. The same principle is visible elsewhere in property. Developers sell flats individually rather than only selling entire blocks. Landowners split land. Commercial and residential elements can be separated where the structure allows it.

The strategy is not magic. It only works where the property, lease structure, valuation evidence, legal process and exit plan support the uplift.

Why it is not just “buy, split, profit”.

The danger with any property strategy is that people reduce it to a slogan. Title splitting should not be treated that way.

A title split deal needs proper due diligence. You need to understand the property, the local sales evidence, the legal process, the accounting structure, the valuation approach, the rental position and the exit route.

It is possible to create value on paper and still build a weak deal. For example, if the split value looks strong but the rents do not support a refinance, the exit can become uncomfortable. If the lease plans are not ready, the HMLR process can be delayed. If the valuer does not understand the strategy, the numbers may not work.

Comparables matter.

The first practical requirement is evidence.

You need to understand what comparable units have actually sold for in the local market. Sold data matters. Sales subject to contract can be useful for context, but valuers will usually rely on completed sales when forming their view.

Before taking on a deal, I would want to see evidence for the proposed split value. That means looking at similar leasehold units, similar sizes, similar conditions and relevant nearby locations.

It is also wise to prepare more than one scenario. An optimistic target is useful, but you also need a pessimistic target and a break-even point.

Property selection and red flags.

Not every MUFB is suitable for a title split strategy. Some properties look attractive because the headline uplift appears strong, but the detail creates problems.

External staircases are a good example. If a flat is being valued for sale, the valuer has to think like a buyer. Many buyers will not be excited by the idea of reaching their newly purchased flat by an external fire escape in bad weather.

Another issue is pre-split units sold cheaply to long-term tenants. If recent sales in the same building happened at “mates rates”, those transactions can influence how the remaining units are valued.

Auction properties also need care. Once a property goes through an auction process, the agreed price can quickly become the market reference point. If the strategy depends on a value above that level, timing and valuation need to be managed carefully.

Plans and the legal pack.

A title split is primarily a legal exercise. The paperwork matters.

Your solicitor needs to be ready to submit a full pack to HM Land Registry on the day of completion. That pack will usually include draft leases, title plans, supporting legal documents and the relevant application materials needed to create the new titles.

The plans are important. The building needs to be redrawn to account for the individual units, common areas, access points and any retained freehold structure. Do not leave this until the last minute. If the legal pack is not ready, the whole strategy slows down.

Accounting and SPV structure.

Title split deals usually need careful corporate structuring. You should always take proper tax and accounting advice, but the common approach is to use a parent SPV and at least one wholly owned child SPV.

The parent SPV may hold the freehold interest. The child SPV may hold the leasehold interests. The lender’s main charge can then sit against the leasehold-owning entity, with a comfort charge against the parent where required.

The point is not to create complexity for its own sake. The point is to create a structure that supports the intended exit, tax position, refinancing route and long-term ownership plan.

Tax considerations.

Tax can materially affect the outcome of a title split deal. Multiple Dwellings Relief for SDLT was abolished from 1 June 2024, subject to transitional rules. SDLT applies in England and Northern Ireland; Wales and Scotland have separate property transaction taxes. Obtain advice on the jurisdiction and transaction structure before committing.

Do not treat tax as something to solve after completion. It should be considered before the offer is made, because the structure you choose at the beginning can affect every stage of the deal.

Legal process and HMLR timing.

The legal process is where the value is formally unlocked.

Title split legals can be more involved than a standard bridge. There may be master leases, individual leases, plans, title documents, lender requirements, HMLR applications and timing considerations.

Registration times vary and should not be treated as a fixed timetable. Where delay would put a transaction at risk or cause qualifying hardship, a conveyancer can request expedition with supporting evidence. Expedition is not automatic and does not remove the need to resolve requisitions. See HM Land Registry’s expedite guidance.

Valuation is the battleground.

Valuation is critical in every property deal, but it is especially important in title split finance.

The strategy depends on the valuer recognising the aggregate split value. That does not mean simply accepting a borrower’s optimistic figure. It means reviewing the property, the local comparable evidence, the proposed lease structure, the exit route and the market for the individual units.

The cheapest or fastest valuer is not always the right valuer. You want someone who understands title split economics.

Split value, block value and split block value.

One of the most important concepts in title split finance is the difference between values.

Purchase price is the price being paid for the property today. Split value is the aggregate value of the individual units once the titles are split. Block value is the value of the whole block if sold as one asset, often at a discount because the buyer pool is smaller.

Because the titles are separate, the route to sale can be more flexible. The discount from aggregate vacant possession value may still exist, but it may be lower than a traditional block discount.

Exit options.

A title split deal should never be entered without a clear exit strategy. Once the titles are issued, the borrower will usually consider one of three routes: refinance the whole portfolio with a term lender, refinance individual units, or sell some or all of the units.

The exit should be stress tested. What happens if HMLR takes longer? What happens if rates move? What happens if the valuation comes in below expectation? What happens if rents do not support the refinance?

How Finanze Capital structures title split finance.

Finanze Capital was launched to lend where structure creates value. Title split finance became one of the clearest examples of that.

The basic principle is that we can lend against the theoretical, but valuer-supported, split value of the property upfront. That is why legal preparation, valuation evidence and exit strategy are so important.

We use loan to split value, or LTSV, as the core metric. This reflects the loan against the supported split value, rather than simply against the purchase price.

Pricing and structure can change over time, so borrowers should always request live terms. However, the information needed to assess the opportunity remains broadly consistent.

What we need to quote a title split deal.

• Purchase price.
• Estimated split value before works.
• Works budget, if relevant.
• GDV, if works are being carried out.
• Unit schedule.
• Current rent roll.
• Proposed rent roll after works or tenancy changes.
• Comparable sold evidence.
• Planned lease structure.
• Exit strategy, sale, refinance, or a mixture of both.
• Borrower experience and asset background.

The most common mistakes.

The first mistake is relying on an optimistic split value without evidence. If the comparable sales do not support the number, the finance will not be there.

The second mistake is ignoring income. A title split can create capital value, but the exit may still depend on rental yield. If rents are too low, refinancing can become difficult.

The third mistake is leaving the legal process too late. Plans, leases and HMLR submission packs should be prepared before completion, not after.

The fourth mistake is assuming all lenders understand the strategy. Many now do, but not all lenders will assess title splits in the same way.

Frequently asked questions about title split finance.

Can a lender lend against split value before the new titles are registered?

Potentially. FINANZE® Title Split Finance was designed around that timing problem. The lender can assess an independently supported theoretical split value before registration, provided the legal pack, plans, lease structure, valuation evidence and exit satisfy underwriting. The supported value remains a professional valuation conclusion, not a figure chosen by the borrower.

Does splitting a property title always increase its value?

No. A split can improve marketability by widening the buyer and refinance pools, but only where the individual units are independently saleable, mortgageable and supported by local evidence. Poor layouts, weak leases, unsuitable access, building defects or low unit demand can remove the expected advantage.

What is loan to split value?

Loan to split value, or LTSV, compares the gross loan with the aggregate value supported for the separately titled units. It is useful because it measures leverage against the intended legal structure. Purchase price, current block value, net proceeds and the lender’s downside position remain important alongside LTSV.

How long does a title split take at HM Land Registry?

There is no guaranteed registration timetable. The quality of the submission, complexity of the titles, requisitions and HM Land Registry workload all matter. A conveyancer may request expedition where the circumstances qualify, but expedition is discretionary and does not cure an incomplete application.

Can title split finance cover 100% of the purchase price?

It may do so where the supported split value creates sufficient gross capacity after retained interest, fees and other deductions. This should never be assumed from a headline percentage. The net loan must be calculated against the actual facility structure and remains subject to valuation, underwriting and legal approval.

What are the main exits from a title split bridge?

The usual routes are refinancing the units individually, refinancing the separated portfolio, selling selected units, selling all units or using a blended sale-and-refinance strategy. Income coverage, lender concentration limits, sales timing and costs should be tested before completion.

Who should consider a title split strategy?

It is most appropriate for experienced investors and developers acquiring multi-unit, mixed-use or divisible assets where legal separation creates a demonstrable commercial benefit. The borrower needs suitable advisers, contingency capital and an exit that remains credible if registration or valuation takes longer than planned.

Why this matters.

Title split finance matters because it shows what property finance should be at its best.

It is not just a product. It is a strategy. It brings together property, valuation, law, tax, accounting, lending and exit planning. Done badly, it can become complicated and risky. Done properly, it can unlock value that was already sitting inside the asset.

For Finanze, it also became part of our identity. The strategy proved that we did not have to be just another brokerage selling the same products as everyone else. We could think differently. We could design around the client’s opportunity.

Final thought.

A title split strategy should never be treated as a shortcut. It is not a way to make weak deals strong. It is a way to recognise hidden structure, create legal clarity and unlock value where the asset genuinely supports it.

If the deal has clear evidence, the right legal preparation, sensible accounting, a credible exit and a borrower who understands the risks, title split finance can be one of the most powerful funding models in property.