How do I split a site?

[teatimer]

I would like to split off a quarter-acre for my son to build a house beside ours. Hopefully he will get planning. How do I do this? What happens to the value of my own site and house? If they're worth less will my lender need to revise my mortgage and borrowing limit?

Thanks

teatimer

 

[Vanilla]

You would have to get your lenders permission to do this assuming your present mortgage covers the entire.

Usually you would then have your son apply for planning. If planning were obtained then you would just transfer that portion, your bank could discharge the mortgage over that portion.

Sometimes people transfer before planning because they feel for tax purposes it is more efficient to transfer a lesser value site ( without planning). But you might then be transferring for no reason if planning were not obtained and also this might not be necessary depending on the circumstances and value involved.

 

[jfk]

Depending on your location a quater acre might be small for a site (is a treatment system required or are you connected to a public sewer?) Is there any more space available?