Dividing land that has a lien

silverzz28

Can someone give me some insight on how to do this?

My mother owns 3 acres with a house but wants to give me part to build a house on. She has a mortgage on land and house but only owes about half of what its worth.

I was told I can have it surveyed and divide the property that the current mortgage company would never know.Then have a lawyer write this up and take it to county for new deed.

Then I was told by someone else that when I go to a lender to build a house on the divided property they will see a mortgage on the (whole) property.

Is this true or is there a way around this?

Also when you divide property do you get a new address or is just considered the same address with Lot1,2,3,ETC?

ginger_nuts

your mothers existing lender will no if you alter the deeds .
I would start off by applying for planning permission ,without this dividing the land would be worthless .if you divide the land and build on it then you will have a new address .Depending on the area it maybe 1A ,!B ,1C or if you dont have neighbours it could be 1,2,3 .if you get planning permission that would be the time to get seperate deeds .

Debt_Free_Chick

I agree with ginger_nuts. You simply must know whether you are going to be allowed to build on the land BEFORE you split it up.

If you split the land and then apply for planning permission and don't get it ... you've got one useless plot of land (as there is no PP to build on it) and you've devalued mum's house by reducing the size of her plot. And you've wasted money!

So .. off to the local planning authority with you

jema_2

hi, i've actually done this, ...very basically steps are
after checking deeds very very carefully for restrictive covenants etc

1- meet & discuss land with local planners, have a copy of the Land reg plan available - background research - the local area plan
2 subject to their comments, (you dont have to go with every thing they say)
identify what will be allowed to be built, if your good with dwgs sketch up a sketch plan to include vehicle access / turning curves etc ( to a recognised scale)
3 next dept in council - highways - on your plan ask will you be allowed permission to leave the road & crossinto your grounds - believe it or not this can cost upto £1k with kerb drops etc
4 stake out prospective boundaries
5 get your mums mortgage to revalue the property with reduced grounds, provided ok with loan to value ratio they will sanction land split
6 who ever draws up the house plans to produce a dimensioned ground survey - apply to register as new title at land registry - couple hundred £,
as your mother is not a 3rd party your presumably who's not going to be hiding any thing, if your confident, you dont have to use a solicitor for this, just need an acurate plan & a chat with Land registry - you will need a solicitor if either of you need to share an access / drainage / cross each others land...
then you go & build your house
the post office have to agree & register all new proposed addresses - there is a leaflet they publish on it, some area you can give houses a name, some areas a small development a name then no. the houses, Avoid A B C suffixs as it devalues the property, (sad but true)
all the best
J.

silvercar

Avoid A B C suffixs as it devalues the property, (sad but true)

Very true - we were put off a property because it was numbered 12b. OK there were other things wrong with it, but it highlighted to all and sundry that it had been built on the side of the house next door. In snobbery terms it sounds like it could be a flat not a house. These days lots of people work from home but may want to give the impression of being in an office, 12b is not going to give the right impression!

Debt_Free_Chick

Interesting ... as I know someone who lives in a half a million quid house in Purley, which is 21B ! :rotfl: