On 4 Aug, 13:15, "GB" wrote:


I haven't looked at a mortgage deed for, oh, such a long time. Does a
typical deed contain something that stops the borrower making alterations
that reduced the valued of the *mortgaged property* without permission of
the lender? Fairly clearly, major building works that join the mortgaged
property up with adjacent uncharged land could considerably reduce the value
of both parts, when separated. In order to realise its charge, and this is
surely the point of the OP's original query, the lender would have
physically to sever the extension from the main house. It might end up with
a room with no windows, etc etc etc.

Yes, exactly. If the mortgagee exercises its power of sale, the plot
may not be worth all that much and so it may then have to come after
the other plot (also not worth much) after judgment.

Clearly something to sort out by careful negotiation.

Francis

"GB" wrote in message
...

" wrote in message
...

The answer is simple - subject to anything in the mortgage to
the
contrary - the mortagee's charge will be over the originally
mortgaged
plot. That is all they would be able to sell (or take
possession of)
as of right, though that would cause immense difficulty to C
and might
well make him come to some sort of arrangement. The only way
to reach
the other bit of land would be to obtain judgment (for the
debt) and a
charging order over it.

I haven't looked at a mortgage deed for, oh, such a long time.
Does a
typical deed contain something that stops the borrower making
alterations
that reduced the valued of the *mortgaged property* without
permission of the lender? Fairly clearly, major building
works that join the mortgaged
property up with adjacent uncharged land could considerably
reduce the value
of both parts, when separated.

You could be right about that. AFAIK my son, (it is a real
situation BTW)
didn't refer to the deeds when he applied for a mortgage for the
extension.

In order to realise its charge, and this is
surely the point of the OP's original query, the lender would
have
physically to sever the extension from the main house. It might
end up with
a room with no windows, etc etc etc.

Providing he could sell before the BS actually took possession
there'd be no problem, as he could either reduce the size of the
adjacent plot of land, (now the house garden) he owns, or simply
sell the house and land as one lot.
Mike.

"Mike G" wrote in message
news:7pednXgbOPNCugrV4p2dnAA@plusnet...

You could be right about that. AFAIK my son, (it is a real situation BTW)
didn't refer to the deeds when he applied for a mortgage for the
extension.

Out of interest, does that mean that both lots of land are in fact charged?
The same lender or different ones?

"GB" wrote in message
...

"Mike G" wrote in message
news:7pednXgbOPNCugrV4p2dnAA@plusnet...

You could be right about that. AFAIK my son, (it is a real
situation BTW)
didn't refer to the deeds when he applied for a mortgage for
the
extension.

Out of interest, does that mean that both lots of land are in
fact charged?
The same lender or different ones?

There is no charge on the adjoining plot of land. My bro and I
sold to him outright for cash.
Mike.

On 4 Aug, 13:15, "GB" wrote:

I haven't looked at a mortgage deed for, oh, such a long time. Does a
typical deed contain something that stops the borrower making alterations
that reduced the valued of the *mortgaged property* without permission of
the lender? Fairly clearly, major building works that join the mortgaged
property up with adjacent uncharged land could considerably reduce the value
of both parts, when separated. In order to realise its charge, and this is
surely the point of the OP's original query, the lender would have
physically to sever the extension from the main house. It might end up with
a room with no windows, etc etc etc.

I've seen at least one set of mortgage conditions which includes a
requirement that if you buy any adjoining land you give the bank a
charge over that land as well (though of course this doesn't help them
much if they only discover the problem after repossessing half of the
property...)