Selling part of garden with mortgaged property

michael8626

Hi,

I have a rental property with a BTL, the lender is Coventry/Godiva.

I am approximate 40% LTV and I have full planning permission for a detached dwelling on a plot 25% of the garden which I would now like to sell. I plan to use some of the proceeds to reduce the mortgage on this property by 40%.

Does anyone know what Coventry are like to deal with and if consent to sell part of the land would be granted and is it straight forward?

Thanks

eddddy

michael8626 wrote: »

Does anyone know what Coventry are like to deal with and if consent to sell part of the land would be granted and is it straight forward?

Generally, the lender will want to send a valuer to value the property that's left - to ensure you're still within the LTV for your mortgage product.

But if you plan to pay off a big chunk of your mortgage, I guess you'll stay well within your LTV band.


In my limited experience, the process was very straightforward with a residential mortgage from a prime lender.

But it was much more difficult with a another lender (sub-prime). My suspicion is that the lender was trying reduce their sub-prime exposure, by persuading some of there sub-prime borrowers to 'go elsewhere'.

So they introduced many obstacles in the land release process, in the hope that the borrower would give up, and remortgage elsewhere.

(But neither of these lenders were Godiva/Coventry.)

Thrugelmir

michael8626 wrote: »

Does anyone know what Coventry are like to deal with and if consent to sell part of the land would be granted and is it straight forward?

On the basis you've outlined difficult to see what the lenders objection might be. If they do consent, you'd need to cover all of their costs. A case of calling them and having a discussion. As lenders can set their own terms of business.

If need be you could remortgage to another lender splitting the title in the process.

michael8626

Thank you both, I will speak to Coventry today and see what the process is.