if i sell a part of my garden, do i have to give the money to my mortgage company?

scientist

I'm selling a part of my front garden ( it's a Compulsory purchase order) What I'd like to know is , Could my mortgage company take the money I get from the transaction? I've rang them but they wont say until they've done a valuation and I'm going out of my mind wondering what will happen. Anyone heard of this situation? Has anyone sold part of their land which is under mortgage?

CIARAN_BOYLE

scientist wrote: »

I'm selling a part of my front garden ( it's a Compulsory purchase order) What I'd like to know is , Could my mortgage company take the money I get from the transaction? I've rang them but they wont say until they've done a valuation and I'm going out of my mind wondering what will happen. Anyone heard of this situation? Has anyone sold part of their land which is under mortgage?

Well they definitely have a claim on it as they hold the deeds to your garden. If in negative equity they will definitely take all of the money. If you have equity and they are happy with the loan they will probably not touch it.

Peregrinus

Basically, they need to know that your remaining indebtedness to them will be adequately secured by the value of the remaining property that you will hold. If your loan would be inadequately secured after the transaction (or, natch, if it is underperforming in any respect) they'll want some or all of the sale proceeds.

scientist

scientist wrote: »

I'm going out of my mind wondering what will happen.

Worst case they take the money and your mortgage gets reduced, which might be best case in the long run.

Paullimerick

Why do you have to sell your front garden can I ask???

Gumbo

My father in law sold a portion of his garden to the Neighbour a few years back. His house was still mortgaged and they took nothing (PTSB).

Gumbo

Paullimerick wrote: »

Why do you have to sell your front garden can I ask???

CPO could be for anything, road, sewage mains, water infrastructure.

scientist

Thanks everyone, i don't think it's in negative equity, at least i certainly hope not. Will the valuer compare the value of the house before the garden is taken to the estimated value after it's gone and if there is no difference we will not have to pay.....probably.

scientist

New road being built.

Spanish Eyes

Surely you have legal advice on this. Sigh.

ongarboy

Agreed. Surely you can consult the solicitor who handled the Purchase?

scientist

He says the mortgage companies are a law onto themselves and will do whatever they want. when i tried to talk to the legal team at the mortgage company, they will not speak with me, apparently I will be contacted when they have made their decision. By the way , the purchase isn't done until they release the bit of land. If I hadn't already tried all of these routes to try to get some info on what will happen , I wouldn't be on here asking if anyone else has been in this situation. If you haven't , or know nothing about it then there is no need for you to post a reply, is there? sigh.

athtrasna

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