Buying with a land split- HELP

roasty79

Mortgage in a house that is having garden sold off separately
Evening
Wondered if anyone can help!
We have put an offer on a house which has been accepted, it's needs total renovation! Due to other circumstances a small section at the bottom of the garden which has planning permission is going to be sold separately which suits us and the vendors have confirmed that they will discuss exact area etc!
Anyway I've learnt that splitting land takes ages and our solicitor tells us that our purchase can continue and as long at the draft forms have been completed , the actual deeds can happen post exchange!

ANYWAY will this affect us getting a Mortgage? We had a mortgage confirmed on the property but our advisor told us to pull out until the split was completed but then we have received this info from our Solicitor ...! Help ??

moneyistooshorttomention

"The vendors have confirmed that they will discuss exact area" would have alarm bells ringing loudly in my head.

I would want the boundary absolutely exactly marked out (complete with fence or wall up)/offically agreed by Land Registry/etc/etc - as otherwise I'd have visions of finding that the vendors had mysteriously decided to garden grab a bigger chunk of garden than they had let on about.

bengalknights

Your advisers correct, until the split is official and agreed i wouldnt proceed

G_M

Of course the boundary must be defined, and the new Plan agreed, before you exchange contracts.

However the actual process of registration can follow. Indeed, no registration of any property takes place till after Completion.

Your mortgage lender will not permit exchange to take place till the contract and Plan have been agreed.

If your original mortgage offer was based on a valuation that was itself based on the purchase of the full existing Title, then removing some land may reduce the valuation, and hence affect the mortgage lender's decision.

Is your solicitor also representing the lender? (this is usual). If so, he should advise you of all this.

roasty79

The valuation was done to include the split but obviously nothing is offfical yet!
Using different solicitors and not concerned that ours don't be very thorough ! Just wondered what to do about the mortgage application?

G_M

If the mortgage offer ws based on the split, what are you concerned about?

The mortgage lender's solicitor will ensure the lender is protected and will not permit exchange till he's satisfied with the contract details.

Your solicitor should do likewise to protect you.

Frankly the biggest issue you face is the need for duplication of work, and additional communication between your and the lender's solicitors!

roasty79

G_M wrote: »

If the mortgage offer ws based on the split, what are you concerned about?

The mortgage lender's solicitor will ensure the lender is protected and will not permit exchange till he's satisfied with the contract details.

Your solicitor should do likewise to protect you.

Frankly the biggest issue you face is the need for duplication of work, and additional communication between your and the lender's solicitors!

We just want to know if we can continue to process of mortgage application whilst the split is happening or can we only do it once it has been completed?

Cakeguts

roasty79 wrote: »

We just want to know if we can continue to process of mortgage application whilst the split is happening or can we only do it once it has been completed?

The mortgage company won't be able to value the house for a mortgage until the split is completed because until then it won't know how big the plot will be.

daliflor

Hello, I was wondering if someone can help me as well. Our property is half of lease and in the process to buy the full lease with our neighbors (50%/50%). I would like to know if my neighbor, legally, has the right to ask for compensation in case I'll decide to convert the loft in the near future. I'll much appreciate your help. Many thanks.

G_M

daliflor wrote: »

Hello, I was wondering if someone can help me as well. Our property is half of lease and in the process to buy the full lease with our neighbors (50%/50%). I would like to know if my neighbor, legally, has the right to ask for compensation in case I'll decide to convert the loft in the near future. I'll much appreciate your help. Many thanks.

Start your own thread. Don't hyjack roasty's.

G_M

roasty79 wrote: »

We just want to know if we can continue to process of mortgage application whilst the split is happening or can we only do it once it has been completed?

But I thought you said:

We had a mortgage confirmed on the property

and

The valuation was done to include the split

If a valuation was done by the lender to include the split, and the mortgage confirmed, then sit back and wait. Your and the lender's solcitors will eventually communicate with each other and the seller and sort out the contract.