Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I have recently purchased a 4 bed property for £250,000 (total plot around 300 sq/m). I have a residential mortgage on the property of £150,000 (60% LTV). To the rear of the property is a large plot of land suited for a new build – I’m 99% sure I will be granted planning to build a 3/4 bed detached dwelling. This would mean taking around 100 sq/m of land off the rear of the existing property.
When finished (currently in need of renovation) the existing property will be worth £350,000; £250,000 after I have taken off the land at the rear.
Ideally – when granted PP – I would like to simply separate the plot with a fence and build a house at the rear. How would I go about selling the property as technically the land the new build sits on is part of the initial lending agreement with the mortgage provider.
I presumed the most logical way to do this would be for a surveyor to come out to the property once the new build has been built and the plot has been separated (by a fence, not legally) and confirm the revised existing plot is still worth at least £250,000. However everyone I asked doesn’t seem to be able to confirm what would happen.
If anyone could help me I would be more than grateful – I can’t be the first man ever to sell a part of his back garden!
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