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Selling land
casterman
Posts: 50 Forumite
I have a rural property with 2 acres of land. My farmer neighbour wants to buy a piece of the land. It is only low grade agricultural land which I can't really access easily,
As the property is mortgaged will I have to inform them about the sale - which I presume I will - and are they likely to consent to the sale. The sale of the piece of land would not affect the value of the property at all and will still be in positive equity.
As the property is mortgaged will I have to inform them about the sale - which I presume I will - and are they likely to consent to the sale. The sale of the piece of land would not affect the value of the property at all and will still be in positive equity.
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Comments
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Yes you'll have to get consent. What is the loan to value of the property?0
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200,000 mortgage 250,000 value0
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Well then it's not a clear-cut answer. "250,000 value" you say. Maybe. But the lender will send out a surveyor to do a valuation and may / may not agree.
If they value it closer to the £200K mark then the lender will think losing some land may drop the value too close to, or even below the mortgage level, in which case they'll refuse.
You could consider offering to use the sale income to reduce the level of your mortgage if that happened?0
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