Boundary dispute and mortgage reporting

LornPL

Hi all,
We have a boundary dispute with a nightmare neighbour which has been ongoing for the past 2 years. We have been trying to get this issue sorted but our neighbour is  refusing to sign off on the boundary position until we agree to some other things in regards to our properties and a shared drive (basically trying to blackmail us for a parking space) .  Its a long story and she is the worst person we have ever met.

 Our fixed rate mortgage is up for renewal and we were hoping to have this dispute solved before renewal but that looks unlikely at this stage. We plan on reporting the dispute as we are aware its fraudulent not to report it and don't want to be taken to court if they were to found out. Has anyone else been in this position and are we likely to have mortgage refused? Are we breaking any laws if we dob our neighbour in to their lender? 

Many thanks.

user1977

Is your lender asking a relevant question about it? I wouldn't expect it to come up, especially if it's just a new product with the same lender.

LornPL

Thank you for your response. We haven't gotten to the point of renewal yet so I don't know - our fixed rate is up the the end of June. I was under the impression that we were obligated to report any disputes to our lender. 

user1977

LornPL said:

Thank you for your response. We haven't gotten to the point of renewal yet so I don't know - our fixed rate is up the the end of June. I was under the impression that we were obligated to report any disputes to our lender. 

It wouldn't be a normal thing to come up at the point of renewal. You do have mortgage conditions which (to some extent) may require you to notify the lender about some events, if they occur at any point during the mortgage, but I doubt you've reached that stage yet.

Be aware that you'll almost certainly need to involve the lender if you ever reach the stage of amending the boundaries or title conditions.

LornPL

Has anyone else ever been in this situation, in regards to their mortgage? 

UnderOffer

How are you going to notify the neighbours lender, will the lender even believe / discuss this with you? 

LornPL

I don't know yet - I am trying to clarify our position around our mortgage first.  We were hoping to have it solved before this point but she is trying to blackmail us to give her a parking space by holding back on signing off the boundary and finding new things to take issue with which is delaying it.   We are very uncomfortable with not declaring this if we need to as we dont want our lender to pull out, if they were to find out.

We have a lot of correspondance from our neighbour in regards to the dispute spanning the past 2 years so if it comes to it, I was planning on sending that to their lender.  Presumably the lender would then go back to our neighbour to ask their perspective but they could be in a lot of trouble if they lie and their lender finds out. 

user1977

I doubt the neighbour's lender will be interested. Bear in mind it's only the lender's problem if and when they repossess, which is generally very unlikely - they're not going to invest time in getting embroiled in neighbour disputes.

LornPL

It was my understanding that disputes make lenders nervous as it can devalue their investment. I guess I don't know though which is is why i am asking if anyone else has been in a similar situation and what is likely to happen. Maybe as you say, neither mortgage company will be interested and I am worrying for no reason. 

UnderOffer

Disputes make new buyers nervous, if your neighbour is not going anywhere soon, they can just carry on, I very much doubt the lender will care as long as they have not defaulted on payments. 

Titus_Wadd

I have an ongoing neighbour dispute and I asked our solicitor whether we were required to inform our mortgage lender, because there was a very real chance the dispute would de-value our house and their investment in it.  I asked mainly hoping the building society might lend some weight to our case.  The solicitor didn't recognise any requirement to tell them; though the Ts & Cs may differ with OP's mortgage.  She said lenders really aren't interested unless it affects our ability to repay the loan.

Has this query arisen from the requirement to inform a buyer of neighbour disputes, but for re-mortgaging I haven't heard that this is required?