Development in my property's garden - mortgage impact?

ellives

Hello

I'm considering having a property built in the garden of my (only) residence. I plan then to sell it and continue living in my home - with a smaller garden and new neighbour....and hopefully a few quid!

Can anyone give me a heads up on the implications re: my current lender?

I assume that I'll need to show that it will not impact on the LtV of my current mortgage?

Any info and advise as to how I might approach this in order not to create problems will be much appreciated.

Ellives

Thrugelmir

ellives wrote: »

I assume that I'll need to show that it will not impact on the LtV of my current mortgage?

You'll need to seek your lenders permission. As the building plot will require separate title deeds. This may impact on the value of your property as it currently stands.

holly_hobby

Yes, as T. states this is not straight forward.

Assuming planning permission is obtained, your current title deeds will have to be split, with the deed for your own home having to be revised to show the change in boundries, and loss of land to your home, which is why your lender may not agree to the project.

The new property, to be mortgageable, will in addition to its own title deed, also have its own utility service provision and private entrance - ie its not a granny flat at the bottom of the garden, with services sparred of your own main supplies.

If you have an acre or so of land (so privacy to your own property is maintained), with the developement not adversely affecting the value of your own (which will impact on the current LTV), then this maybe a goer, but it will all depend entirely upon your current lender and their surveyors view of the changes.

Hope this helps, if not exactly music to your ears

Holly x