Selling off some of my garden

Pinkmummy

Hi does anyone know if i have to inform my mortgage company if i sell a small area of my garden to a neighbour?

opinions4u

Yes.

And they would be quite within their rights to refuse, as it reduces the value of their security. If they do refuse, you could, I suppose, offer to repay the capital raised off the mortgage debt.

You would need a solicitor to carry out the transaction anyway, and the lender would most likely charge a fee if they did agree to it.

Just check that the amount you would raise v the cost of raising it is a worthwhile idea.

Senior_Paper_Monitor

It will subsequently be reported to the Land Registry and almost certainly the lender will become aware anyway due to their charge registered at the same location.

The transciting solicitors will probably both require formal confirmation of current lender's agreement anyway before exchange.

The lender will want to see the transfer documents and probably want to have the split property valued (unlikley to agree if revised value moves LTV above max threshold for current deal - unless another deal offered/accepted). Costs will be involved - amount depends on lender and circumstances.

Simple answer to your question - yes.

Pinkmummy

Thanks for the replies