Splitting tile and selling house

Banjoboy

Hey all, I wondered if anyone can advise us before we go to a solicitor so I know what to expect. We have a house on a corner plot and it is mortgaged. We have got planning permission to build a three bed bungalow on a plot on the mortgaged property. Our plan is to sell the house pay the mortgage off , live in a caravan on the plot and build the bungalow and move into it.
My question is how do we go about splitting the land legally? My idea would be to register the plot we will build on with the land agents and then sell the house which will then have the land registered as a smaller plot (excluding our building plot)? Thanks

davidmcn

There have been previous threads here dealing with the technicalities if you have a hunt - it's not all that straightforward, in particular I think you'll have trouble splitting the title while your mortgage is still over the whole lot.

Have you considered the practicalities of trying to market the property and then telling prospective buyers that no, they're not getting the nice big garden, and also they'll be living next to your caravan / building site for a while after they move in?

Richard_Webster

If you are going to pay off the mortgage when you sell the land with the existing house on you don't need to "split" the title. Your sale will simply be of part of the title. Mortgage lender won't be bothered because its mortgage will go when the sale completes. Part that is sold gets registered with new title number and you keep the remainder of the original title. Problem solved.

G_M

* move into caravan
* market house
* find buyer willing to buy the house less the garden, knowing he'll be living next to building site
* Sell house less garden to buyer, using form TP1 (Transfer of Part)
* simultaneously pay off mortgage using money from the sale
* Buyer registers TP1 and new Titke is created. You retain the existing Title (which nolonger includes the house)
* (a surveyor probably needed to re-draw Titke Plans for existing Title and new Title)
* build nw house and move out of caravan


the only difficulty will be selling the caravan at the end - ebay?

pramsay13

We did something similar. We knocked down an old garage and built another house on the site of the old garage so there are now two houses on the original plot.
We are renting out the new house so haven't split the title yet.
Our main issue was with the mortgage company that removing a portion of land and old garage didn't have too big an impact on the value of the property.