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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7620
Experience:  UK solicitor holding an England and Wales practising Certificate.
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I paid off my mortgage on my old house and was able to build

Resolved Question:

I paid off my mortgage on my old house and was able to build a new house on the side of my old one. I needed to borrow £100000 against my old house from a building society, do I need to inform them, do I need to title register with the land registry, any advice would be appreciated. Thank you
Submitted: 2 years ago.
Category: Property Law
Expert:  Thomas replied 2 years ago.
Hi, Thanks for your question. Have you already borrowed the £100,000 from the building society by way of mortgage?Kind regards,Tom
Customer: replied 2 years ago.
Yes
Expert:  Thomas replied 2 years ago.
Right. Was new build property built on the land which you took out a mortgage on?
Customer: replied 2 years ago.

i cannot see your reply

Customer: replied 2 years ago.
Yes it is
Expert:  Thomas replied 2 years ago.
Okay. What do you propose to do with the new property? Sell it?When do you expect that you will repay your mortgage?
Customer: replied 2 years ago.

no i am not going to sell it i am going to live in it

Expert:  Thomas replied 2 years ago.
Okay. Do you expect to pay of the mortgage completely in short-medium term?
Customer: replied 2 years ago.

no

Expert:  Thomas replied 2 years ago.
Hi Thank you for your question and patience, I’m Tom and I’ll try to help you.Under most residential mortgages there is a mortgage condition not to carry out structural alterations without the lender’s consent. Assuming that you have a normal mortgage then if you did not have consent from the lender to build the property on the side of the existing property then you are almost certainly in breach of your mortgage conditions by building the property.That being said, if the mortgage company are not aware of the works and do not become aware then nothing will happen provided you continue to pay your mortgage. If you were to subsequently (ie in the long term) repay the mortgage over time or from sale of the properties then, again, nothing would happy because they lender would simply receive repayment and remove their charge. If you were to advise them that you have carried out the works then they would most likely carry out an inspection/survey to ensure that the value of the land/properties is maintained. They would bill you for the cost of this. If the value of the land has decreased drastically then you would have big problems. If it has increased or stayed the same then you would (most likely) still be okay). I’ll let you decide which of the above is the best way forward. If you have simply built the property on land which is already in your name at Land registry then you do not need to do anything as far as they are concerned. My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question. Kind regards,Tom
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