Thinking of subdividing

[perich101]

Hi,

We have a mortgage on a bungalow which sits in a garden of 2/3 acre. Because of the size the council have a policy that 40%of what is put on here should be affordable housing. We are in a village location so we are limited with what we can put on here, only bungalows. Therefor there is not enough to be made out of the rest of the plot to soak up the financial hit from the affordable.

We would like to think about subdividing into two plots. Does anyone know how to go about this or whether it is very expensive?

Very grateful for any assistance.

Paul

[aleo1203]

You need to consult with a land surveyor. They can sub-divide the lot, make a map, file the map and it will probably cost around 300-500 depending on factors such as whether or not it has been previously surveyed, and how much of a bugger the town supervisor is. Hope this helps.

[perich101]

Thanks for that Aleo1203,

Yes I will do that, I'm hoping that it wouldn't be too much of a problem as we are in a village location. There are two main concerns that I have. Firstly, I could go through the process of subdividing and then fail with planning which leaves a piece of land with no purpose.

Secondly, we have a £150,000 mortgage on the property which as a whole is worth £240,000 or even less at the moment. There could be a major obstacle with the mortgage company. These days we are hearing that people need a much greater deposit, the days of the 100% mortgage are gone. If it is judged that I am cutting the existing value of the property too much they might refuse to allow it. Saying that, the piece of garden that we would be looking to chop off, as it were, is probably worth £40-50,000 at present. This would still leave us with c25% equity in the place to satisfy the mortgage company.

Appreciate it.

[aleo1203]

Another point to consider is that there is usually a minimum size set for lot sizes. You say the total plot size is only 2/3 of an acre? You might not be able to subdivide such a small plot of land. Ask around your local institution.