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    • roasty79
    • By roasty79 17th Jun 17, 11:39 AM
    • 43Posts
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    roasty79
    Buying with a land split- HELP
    • #1
    • 17th Jun 17, 11:39 AM
    Buying with a land split- HELP 17th Jun 17 at 11:39 AM
    Mortgage in a house that is having garden sold off separately
    Evening
    Wondered if anyone can help!
    We have put an offer on a house which has been accepted, it's needs total renovation! Due to other circumstances a small section at the bottom of the garden which has planning permission is going to be sold separately which suits us and the vendors have confirmed that they will discuss exact area etc!
    Anyway I've learnt that splitting land takes ages and our solicitor tells us that our purchase can continue and as long at the draft forms have been completed , the actual deeds can happen post exchange!

    ANYWAY will this affect us getting a Mortgage? We had a mortgage confirmed on the property but our advisor told us to pull out until the split was completed but then we have received this info from our Solicitor ...! Help ??
Page 1
    • moneyistooshorttomention
    • By moneyistooshorttomention 17th Jun 17, 11:58 AM
    • 13,184 Posts
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    moneyistooshorttomention
    • #2
    • 17th Jun 17, 11:58 AM
    • #2
    • 17th Jun 17, 11:58 AM
    "The vendors have confirmed that they will discuss exact area" would have alarm bells ringing loudly in my head.

    I would want the boundary absolutely exactly marked out (complete with fence or wall up)/offically agreed by Land Registry/etc/etc - as otherwise I'd have visions of finding that the vendors had mysteriously decided to garden grab a bigger chunk of garden than they had let on about.
    ploughing my own furrow...

    No-one can make you feel inferior without your consent.
    • bengalknights
    • By bengalknights 17th Jun 17, 12:11 PM
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    bengalknights
    • #3
    • 17th Jun 17, 12:11 PM
    • #3
    • 17th Jun 17, 12:11 PM
    Your advisers correct, until the split is official and agreed i wouldnt proceed
    • G_M
    • By G_M 17th Jun 17, 12:29 PM
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    G_M
    • #4
    • 17th Jun 17, 12:29 PM
    • #4
    • 17th Jun 17, 12:29 PM
    Of course the boundary must be defined, and the new Plan agreed, before you exchange contracts.

    However the actual process of registration can follow. Indeed, no registration of any property takes place till after Completion.

    Your mortgage lender will not permit exchange to take place till the contract and Plan have been agreed.

    If your original mortgage offer was based on a valuation that was itself based on the purchase of the full existing Title, then removing some land may reduce the valuation, and hence affect the mortgage lender's decision.

    Is your solicitor also representing the lender? (this is usual). If so, he should advise you of all this.
    • roasty79
    • By roasty79 17th Jun 17, 1:57 PM
    • 43 Posts
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    roasty79
    • #5
    • 17th Jun 17, 1:57 PM
    • #5
    • 17th Jun 17, 1:57 PM
    The valuation was done to include the split but obviously nothing is offfical yet!
    Using different solicitors and not concerned that ours don't be very thorough ! Just wondered what to do about the mortgage application?
    • G_M
    • By G_M 17th Jun 17, 3:26 PM
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    G_M
    • #6
    • 17th Jun 17, 3:26 PM
    • #6
    • 17th Jun 17, 3:26 PM
    If the mortgage offer ws based on the split, what are you concerned about?

    The mortgage lender's solicitor will ensure the lender is protected and will not permit exchange till he's satisfied with the contract details.

    Your solicitor should do likewise to protect you.

    Frankly the biggest issue you face is the need for duplication of work, and additional communication between your and the lender's solicitors!
    • roasty79
    • By roasty79 17th Jun 17, 7:25 PM
    • 43 Posts
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    roasty79
    • #7
    • 17th Jun 17, 7:25 PM
    • #7
    • 17th Jun 17, 7:25 PM
    If the mortgage offer ws based on the split, what are you concerned about?

    The mortgage lender's solicitor will ensure the lender is protected and will not permit exchange till he's satisfied with the contract details.

    Your solicitor should do likewise to protect you.

    Frankly the biggest issue you face is the need for duplication of work, and additional communication between your and the lender's solicitors!
    Originally posted by G_M
    We just want to know if we can continue to process of mortgage application whilst the split is happening or can we only do it once it has been completed?
    • Cakeguts
    • By Cakeguts 17th Jun 17, 8:39 PM
    • 2,668 Posts
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    Cakeguts
    • #8
    • 17th Jun 17, 8:39 PM
    • #8
    • 17th Jun 17, 8:39 PM
    We just want to know if we can continue to process of mortgage application whilst the split is happening or can we only do it once it has been completed?
    Originally posted by roasty79
    The mortgage company won't be able to value the house for a mortgage until the split is completed because until then it won't know how big the plot will be.
    • daliflor
    • By daliflor 17th Jun 17, 9:06 PM
    • 8 Posts
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    daliflor
    • #9
    • 17th Jun 17, 9:06 PM
    • #9
    • 17th Jun 17, 9:06 PM
    Hello, I was wondering if someone can help me as well. Our property is half of lease and in the process to buy the full lease with our neighbors (50%/50%). I would like to know if my neighbor, legally, has the right to ask for compensation in case I'll decide to convert the loft in the near future. I'll much appreciate your help. Many thanks.
    • G_M
    • By G_M 17th Jun 17, 9:39 PM
    • 40,633 Posts
    • 46,500 Thanks
    G_M
    Hello, I was wondering if someone can help me as well. Our property is half of lease and in the process to buy the full lease with our neighbors (50%/50%). I would like to know if my neighbor, legally, has the right to ask for compensation in case I'll decide to convert the loft in the near future. I'll much appreciate your help. Many thanks.
    Originally posted by daliflor
    Start your own thread. Don't hyjack roasty's.
    • G_M
    • By G_M 17th Jun 17, 9:42 PM
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    • 46,500 Thanks
    G_M
    We just want to know if we can continue to process of mortgage application whilst the split is happening or can we only do it once it has been completed?
    Originally posted by roasty79
    But I thought you said:
    We had a mortgage confirmed on the property
    and
    The valuation was done to include the split
    If a valuation was done by the lender to include the split, and the mortgage confirmed, then sit back and wait. Your and the lender's solcitors will eventually communicate with each other and the seller and sort out the contract.
    • roasty79
    • By roasty79 17th Jun 17, 10:48 PM
    • 43 Posts
    • 5 Thanks
    roasty79
    But I thought you said:
    and
    If a valuation was done by the lender to include the split, and the mortgage confirmed, then sit back and wait. Your and the lender's solcitors will eventually communicate with each other and the seller and sort out the contract.
    Originally posted by G_M
    Thank you for your replies! The issue is our mortgage advisor has cancelled
    Our application as thought we needed to wait for the full split on the land to be done prior to gaining the mortgage...! My question is can we reapply with the plans that it will be split post exchange or not?
    • G_M
    • By G_M 17th Jun 17, 11:20 PM
    • 40,633 Posts
    • 46,500 Thanks
    G_M
    Providing the contract specifies clearly, with a Plan, what you are going to buy (ie the property plus garden excluding the bit to be sold separately) then you can

    a) apply for a mortgage on that basis
    b) get it vaued on that basis
    c) get a mortgage offer on that basis
    d) exchange contracts on that basis.

    When you Complete, your solicitor sends a form TP1 (Transfer of Part) to the Land Registry who will transfer ownership to you of that part of the original Title that you are buying (ie everything excpet the land to be sold separattely)
    Last edited by G_M; 17-06-2017 at 11:25 PM.
    • roasty79
    • By roasty79 24th Jun 17, 10:01 AM
    • 43 Posts
    • 5 Thanks
    roasty79
    Providing the contract specifies clearly, with a Plan, what you are going to buy (ie the property plus garden excluding the bit to be sold separately) then you can

    a) apply for a mortgage on that basis
    b) get it vaued on that basis
    c) get a mortgage offer on that basis
    d) exchange contracts on that basis.

    When you Complete, your solicitor sends a form TP1 (Transfer of Part) to the Land Registry who will transfer ownership to you of that part of the original Title that you are buying (ie everything excpet the land to be sold separattely)
    Originally posted by G_M
    Thank you for your reply! Any advice which lender would be happy to do this as Nationwide has come back to us and won't approve until we have the official paperwork through from land registry which is going to take ages!
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