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Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7675
Experience:  UK solicitor holding an England and Wales practising Certificate.
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I have a question regarding splitting title on a property and

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I have a question regarding splitting title on a property and issues around the existing mortgage on said property.
Thanks, ***** ***** you expand on the details of your question please?
Customer: replied 2 years ago.
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Customer: replied 2 years ago.
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Customer: replied 2 years ago.
we wish to split title on a property, separate part of garden into a separate title, and retain mortgage only on house part. new valuation of house has confirmed that mortgage security is not diminished but mortgage company require proof of our intentions for part of garden, before granting approval to title split. we see no reason for this - surely it is within our rights to do as we please with garden once title is split and mortgage company has no rights over it?
Thank you for your question and patience, I’m Tom and I’ll try to help you.
The lender has a first legal charge over the whole legal title for the property (including the garden). This prevents you from splitting the title this way without their consent.
The lender is not actually unreasonably in requesting further information and evidence of your intentions, since the valuation is based on the remaining element of the security. However, if you were, say, to erect something on the garden part of the land then it’s possible that it could diminish the remaining value of the land against which the mortgage would be secured.
You cannot compel the lender to not drop their request. From experience, you are much better off attempting to comply with their requirements than spending valuable time arguing with them – they will not amend their requirements.
I am sorry but you’re going to have to attempt to deal with their requirements.
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,
Customer: replied 2 years ago.
but what if we have no firm intentions to do anything with it at the moment, but wish to keep some land separate for any future decisions - which could include giving it to our daughter, selling it, renting it, or whatever - we don't know yet. but we want to be free to do as we want, hence wanting to transfer full mortgage title to house only.
I appreciate that you may feel restricted in what you can do, but that is what a mortgage is. It restricts your ability to deal freely with your property because it grants an interest to another party (ie. the lender).
I would ask the lender what they will accept. See if they will accept a statutory declaration (a sworn statement under law) from you confirming that you will not do any thing with the garden land that might diminish the value of the property.
If they can't accept this then find out specifically what they need. If you can't provide what they need then your only option would be remortgaging with a new lender but making the separation of the garden a precondition to an offer of a mortgage and see how you get on.
Customer: replied 2 years ago.
would we require any agreement from current lender to do that - ie. separate garden at time of remortgage?
No, provided that your current lender was repaid the balance owing under the mortgage upon completion of the remortgage..
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