Loan to value

Kevcor

I’m separating part of my garden from the the mortgaged property to build on.I’m being asked for a payment by the lender to safeguard the security of the existing property.So that it still has the same exposure of 75%ltv but the original contract was 85% ltv are they allowed to change the ltv from the original one.Thanks Kev

[Deleted User]

If you can change the terms of contract by asking to take away some of their security then they can ask for something to compensate them for that loss.    
Keeping their risk to 75% of the property value seems fair as otherwise they take on extra risk for no benefit to them. 

Kevcor

Thanks that’s very helpful,I thought I maybe wishful thinking.