Will Building Society support remortgage for build on my lawn ?

ADONAI · 6 Oct 2021

Hi,
I have 20% left to pay on Mortgage with Nwide and have a very large lawn suitable for a new build.
I would need to increase the mortgage amount to pay for the build.

Is this something the Nationwide would consider or do i need a different approach ?

Thanks

Ad.

blup · 6 Oct 2021

I think you would need their consent first, they would support it if you met the criteria for a commercial loan. Alternatively, get planning permission, sell off the plot and pay off the mortgage.

Blup

ADONAI · 6 Oct 2021

thanks,but if i attempt to get planning permission i assume i have to tell the lender.

johnny2007 · 6 Oct 2021

Get planning permission, then ask for a remortgage.
You don't need to tell the bank.

blup · 6 Oct 2021

ADONAI said:
thanks,but if i attempt to get planning permission i assume i have to tell the lender.

I believe planning permission can be applied for by the owner but might be subject to onerous conditions or some kind of infrastructure levy that the owner (and lender) would have to agree to in writing. So check this first with the Council (planning authority). It would be wise, in any event, to check what your mortgage agreement says so you can assess the risk of going ahead in (potential) breach of a mortgage condition.

Blup

Nakajo · 7 Oct 2021

Note that anyone can apply for planning permission, regardless of whether or not they own the land.

ADONAI · 7 Oct 2021

"Note that anyone can apply for planning permission, regardless of whether or not they own the land." -amazed by that -whats the logic behind that ?

blup · 7 Oct 2021

Developers who have a conditional contract to purchase land from say a farmer or member of the public, can control the process better. The owner always has to be notified, in fact an application cannot be determined if they haven't been.

Blup

Harry Bloomfield · 7 Oct 2021

ADONAI said:
thanks,but if i attempt to get planning permission i assume i have to tell the lender.

You do not need to ask or tell anyone at all. You could even seek planning permission to build on any land, whether you own it or not. Only if you intend to progress with it, would you need to seek the permission of the lender.

Nakajo · 7 Oct 2021

Paraphrasing the legislation (https://www.legislation.gov.uk/uksi/2015/595/article/13/made)... an applicant must notify any owner of the land to which an application relates by serving notice on every such person or (where owners are unknown) by publication in a local newspaper

Mottie · 7 Oct 2021

blup said:
might be subject to onerous conditions or some kind of infrastructure levy that the owner

Yeah, when I obtained planning permission for a new build on some land we own, there was a CIL (community infrastructure levy) charge. I think it was around £7-£8k. You pay it on commencement of the build but if you are going to live in it yourself, you were exempt. Same with vat on the build too, I think.

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Will Building Society support remortgage for build on my lawn ?

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