Posted on 28 September 2012 by nicola
Can I sell off part of my land even though the property is mortgaged?
As the property is mortgaged, you can not sell part of the land without first getting your lender's consent. You will need to apply to them for a release of part security and I expect they will have a specific form for you to complete, there will also undoubtedly be an administration charge payable before they will consider your request.
Whether they grant consent is going to depend on the value of the property remaining after the proposed sale. You may find that the lender wants to have a professional valuation carried out, for which you will have to pay and if there is still sufficient equity to support your mortgage you should get consent. If there isn't, you may still get consent subject to repaying some of your mortgage from the sale proceeds.
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