Subdividing a property plot while having a mortgage

eddddy

So it sounds like you'd be looking at a Non-Occupying Joint Borrower mortgage - because your wife won't be living in the property. If you haven't already, I guess you need to speak to a mortgage broker about what's available.

It also sounds like your hoping that a mortgage valuer will take into account your refurb when revaluing after 6 months. That's unlikely to happen. More likely, they'll simply look at the sale price from 6 months previously, and down value because of the reduced garden size.

You might want to budget for up to £10k to get detailed planning consent for the new house. But maybe you could just go for outline consent initially, then sell a property to release more funds.

I'd be pretty sure that the EA has been approaching lots of builders with details of the current property at £170k. If builders aren't interested, there might not be much margin. Are you planning to hire a builder to build the new house? If so, and if the margins are already tight for a builder with their own workforce etc, you might find that the project isn't cost effective for you.

HMRC might take an interest in the purchase and quick resale - they might decide that you're 'flipping' the property, and tax you accordingly. But anecdotally, people say they give you the benefit of the doubt the first time, but come down hard if you try it a second time.

allan154

Developers need 2 properties to make it viable and last outline clearly said no to that due to surrounding properties been bungalows.
 I don't want planning for 2 as I'm looking at living there in a large bungalow.

I bought my last property which was a repossession. My competition was 4 builders I simply out bid them.
They needed a mark up , I didn't as I was buying to move in so I could offer that bit more the same kinda goes here.
I could go side extend go 5 bedroom due to the huge plot available.
Please don't think I'm trying to teach your grannie how to suck eggs I'm certainly not and I am taking on board everything everyone says.
My finances are up in the air right now with which way to go. We could potentially sell our current property and move straight there both my wife and I.

We're not 100% sure, again,  all advise from here will be taken on board.

Thanks again