November 2023 Blog Post

Author: Mark Harrison. Mark is the Managing Director of Breeze Capital and has over 30 years experience in bridging loans & development finance.

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Splitting properties can be an incredibly profitable strategy, regardless of your level of experience. Once you understand the process and know what to look for, you’ll find potential deals in your area that you might have previously overlooked.

This strategy is a powerful tool in the property investment world and the principals here at Breeze Capital have been helping property developers, landlords, and entrepreneurs fund their property ambitions for over 25 years. Whether that is with a bridging loan or with property development finance, we have the right lending products to suit all circumstances.

The Concept of Property Splitting

To understand the basic concept of property splitting, let’s use a non-property example. Imagine a café owner who buys a cake from a wholesaler for £10. Instead of selling the whole cake, they slice it into eight pieces and sell each piece for £2. The total income from selling the individual slices is £16, making a profit of £6. This is a classic wholesale to retail strategy, where the sum of the individual pieces is more than the whole.

This principle can be applied to property investment. For instance, a freehold property worth £200,000 that has been split into four one-bedroom apartments can have a cumulative value of £300,000 if each apartment is worth £75,000. By creating individual leases for each unit, you can increase the value of the property and make a gross profit.

How to Implement the Strategy

The first thing to mention is: Choose who you take advice from carefully. Title splits are not the road to immediate riches and you won’t end up living in the Caribbean counting your cash. It can be a lucrative strategy but it’s not the be all and end of all of property development. Read through our guide and start planning your strategy today.

Finding the Right Property

The first step is to find a freehold property that has been physically split into individual units. These properties exist because landlords have found it more profitable to rent out individual units rather than the whole house. You can find these properties in most suburbs, large cities like Liverpool and Manchester and seaside resorts like Llandudno in North Wales or Whitstable in Kent.

When searching for properties on platforms like SpareRoom or Zoopla, look for properties with multiple rooms and read the descriptions carefully. You might find an eight-bedroom property described as ‘arranged as four, two-bedroom units’. This is a clear indication that the property has been split into individual units.

Ensuring the Property Meets the Criteria

It’s crucial that the property meets certain criteria. Firstly, it must be a freehold property. Secondly, all the units must be self-contained, meaning each unit has its own front door, living room, kitchen, bathroom, and bedroom. Lastly, each unit must be at least 30 square metres in floor space to ensure it can be mortgaged.

Evaluating the Property

Once you’ve found a suitable property, you need to evaluate it. Speak to local agents to get an idea of the value of similar one-bedroom apartments in the area. Add up the individual value of each of the flats if they were leasehold properties. The purchase price should be less than 75% of the cumulative value. For example, if you’re buying a property for £200,000, the cumulative value of the individual units should be at least £266,667.

Creating Individual Leases

After purchasing the property, you’ll need to get a solicitor to create individual leases for each unit. This process metaphorically ‘slices the cake’, increasing the value of the property. You can then either sell the units for a profit or refinance and hold onto them.

Financing the Purchase

At Breeze Capital, we can help you finance the purchase of the property based on the higher value you’ve created. We can lend up to 65% of the higher value, allowing you to buy the property using very little of your own money. After six months, you can refinance to pay us back.


Splitting the title on properties is a profitable strategy that allows you to increase the value of a property by creating individual leases for each unit. It’s a specialist knowledge area, and not everyone is aware of it. However, with the right knowledge and support, you can successfully implement this strategy and reap the rewards. At Breeze Capital, we’re here to help you fund your property ambitions and make the most of opportunities like these.

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