Splitting mortgage to allow build in own garden

[ADONAI]

Hi
Sorry if in the wrong forum - i have a 20% mortgage on a property with a large garden.
my aim is to build another property in the garden but would need refinancing via an
increased mortgage.
the new property would then be sold and "split" from the existing mortgage and property.

are lenders likely to allow such an arrangement ?

Thanks

Ad.

 

[Nakajo]

I think you are in the wrong forum

 

[^woody^]

I think you are in the wrong forum

There is no finance forum

 

[johnny2007]

Are you pongoman?

 

[denso13]

are lenders likely to allow such an arrangement ?

Yes, especially with such a low mortgage ratio.

 

[^woody^]

A mortgage has to be on the property. You are describing a loan secured on the property

 

[johnny2007]

You can borrow more money on your existing mortgage and then start the process of building.
Before you change the land registry records you will need to contact the mortgage lender because they have a charge on the property.
They will then have to agree on the proposed changes.
With such low loan to value ratio, it shouldn't be a problem.

 

[ADONAI]

thanks everyone !