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Stuart J
Stuart J, Solicitor
Category: Law
Satisfied Customers: 23745
Experience:  Senior Partner at Berkson Wallace
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Morning, my bothers and I are finding and building a pair of

Customer Question

Morning, my bothers and I are finding and building a pair of houses in our parents garden. We will be buying the plot and splitting the deeds once they at a stage where we can mortgage them. What document do we need to make sure we can buy the land and ensure no one else has a claim to them. Thanks
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: We’ve got planning permission, have started the build involving getting checked and authority from building inspector, we originally tried to get finance to build but couldn’t so my brothers and I have put our own money in to get the houses built. Then looking to remortgage, pay for the plots, split title deeds and reimburse ourselves.
JA: Where is the house located?
Customer: Wakefield West Yorkshire, in my parents garden
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Just wanted to know what documentation we can draw up to ensure we have the right to buy the land once built, parents in complete agreement but we have another family member who isn’t part of the build so don’t want him of his wife to try and claim a shall once built, or if anything happens to my parents before we’ve transferred the deeds
Submitted: 11 days ago.
Category: Law
Expert:  Stuart J replied 11 days ago.

Hello. Thank you for the question. It is my pleasure to assist you with this today.

Please bear with me as I will be online and off-line from time to time and therefore, may be delayed getting back to you. You will receive an email when I reply.

What are the plans for these properties?

Customer: replied 11 days ago.
Thinking of renting them out
Customer: replied 11 days ago.
Happy to continue online
Expert:  Stuart J replied 11 days ago.

If your parents have a mortgage then the lender is going to have to consent to this and they will want the property revalued.

With no mortgage, the safest way of doing this is for your parents to sell the land to you now and in the contract it could say that the payment under the contract is payable in 2 years time so that will give you time to build the houses and mortgage them.

It’s just a deferred consideration contract.  Not unusual.

Any competent conveyancing solicitor would be able to do this.

Thank you for letting me assist you with your legal question.  I am glad that I was able to help.

I am not certain whether that answers the question for you or not, but I am happy to answer any specific points arising from this.

It will be my pleasure to help you again either further with this or any future questions you have

Kind regards

Customer: replied 11 days ago.
My parents have a small mortgage, the mortgage company are aware there is planning permission in place my parents are going to repay the mortgage in full when we can release funds to buy the plot once the houses are built. We can borrow short term to pay the mortgage but was planning to do that when houses built and in a position to remortgage build so only borrowing mortgage money for a short amount of time. Hoping to complete houses in 6 months
Customer: replied 11 days ago.
Their property was revalued with planning for plots reduced valuation by 50k but still 400k equity.
Expert:  Stuart J replied 11 days ago.

Although the planning permission is very relevant, the lenders are only interested in whether the remaining plot which your parents are keeping values up for mortgage purposes.  That needs to be the start, consent for the mortgage lender to agree to have that part of the land which you when your brother are buying, released from your parents title and released from the mortgage lenders security.  Without that, it’s a nonstarter