Jump to content
  • entries
  • comments
  • views

The Banks press Pause



Disappointing week. I've been waiting three months on a decision by the bank about splitting the property folio and allowing me to sell the old house but keep the side garden to build on. They are concerned if I don't sell the house they are taking a risk as the LTV would then exceeds the Central Bank limits. The reduced property value post split plus the fact I've only a year paid down on the mortgage plays into this. I thought they would hold the side garden as security but it doesn't work like that....

I've been talking to a few banks and my solicitor about options but the clearest to date is either to split the property at time of sale or wait a year, pay down the mortgage to get it below the 80% LTV threshold (depending on the valuation), then in a year ask the same question. 

I'm all ready to go to tender - have builders lined up and the tender package written but without the bank's approval I can't proceed. 

I'll wait to see if any other options emerge but getting access to the garden has been an issue from the start. I tried to buy directly off the previous owner but the banks didn't play ball, and now again I'm hitting institutions that we bailed out calling ME a risk! Anyway, rant over. Turns out nothing is simple. I can only ask the questions, the replies sometimes confound me! 

Let's see where we are in 12 months......

  • Sad 3


Recommended Comments

Are you going to lose a lot selling the house without some of the garden, we did this, took more than half of the ground that was with the house but still left a reasonable amount and we only lost 5k , have you checked out the value of what you want to sell?

Link to comment

Got valuations done of side garden with planning, the house without the garden and the value of the proposed new house when it's finished. The main problem is I can only access 80% of the build cost / house value (whichever is the lower) with a new mortgage and I've no savings to speak of so rather tight to pursue a build at present. Give it a year and I'll have paid off the mortgage one more year and added a lump sum to that to reduce it further. 

I can split the folio at time of sale despite absent advice from one solicitor. So that's a runner.

I've now gone out to tender and hope to have up to 6 builders quotes in by Xmas to consider. Currently though my finances aren't in a good place so am planning on switching banks to get a 1 year fixed rate and 2% cash back while deciding if I should sell and build and if that's possible in January or delay a year. I can always break the fixed rate early if necessary.

So, let's wait and see! Maybe Santa will be nice to me! 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...