Part release of land from Lender's security

Treez58

Has anybody ever had a problem with their lender refusing a part release of land from their security?

In a nutshell we have the opportunity to sell a relatively small part of our garden land for development for a good sum of money. However, our lender has refused point blank to release the land, without even so much as a valuation which would establish that it makes absolutely no difference to the value of the property on which the mortgage was granted. Our mortgage is currently about 80% of the value of the property and a windfall from selling the land would greatly improve our financial stability. Any advice please?

terryw

By pure coincidence, I was out last night with a friend who has done exactly this. Initially, he too was knocked back but after speaking to someone at the bank who had real authority, permission was granted without any bother. Try again stressing that the value of the property is not affected. Perhaps you could also suggest paying a proportion of the sale price straight off the mortgage.

bw

Treez58

Thanks for your reply. Unfortunately, we have already made all these points but they have still said they are unable to reconsider. As I mentioned previously they have not even carried out a valuation (we offered their choice of valuer at our expense). It all seems so unreasonable - almost that they don't want our financial situation to improve! We are at a loss as to know what to do next, unfortunately we are not in a position to remortgage with another lender otherwise we would be doing just that.....

poppysarah

Does having a development in your "back yard" devalue your own house?

Treez58

On the contrary - it is a small, high end residential development and as part of the development we will actually be improving our own property and are permitted to use the developer's resources at cost price. It is a win-win situation - reduce the mortgage AND increase the value and saleability of the property.... unfortunately our lender doesn't seem to have even considered obtaining a surveyor/valuers view on the subject before rejecting the request