Hi all,
Just a quick question – If you have a mortgage on a PPOR and wish to sub-divide, does the bank need to know or approve these plans? Do they hold title/mortgage on the 2nd block as well?
Thanks in advance,
Karl and Rita
The only thing that limits us…is a limiting belief.
In NSW, if they hold a registered mortgage they will need to consent. If they hold an unregistered mortgage by deposit of the deeds they will still need to approve it as theyw ill need to produce the deed.
The mortgage is over the whole of the subdivided land. If you want something released from the mortgage youw ill need to negotiate.
Hi,
Anyone know about victoria? I am in the same situation.
Thanks,
Sue [biggrin]
Ps.S. Sorry Karl & Rita for butting in! [cap]“Be careful not to step on the flowers when you’re reaching for the stars”
Hi all,
BTW, we are in QLD. And thanks crj for your reply.
diclem, yeah no probs. We’re all out here to help.
K&R
The only thing that limits us…is a limiting belief.
Haven’t done one of these for along time but this is what I remember.
Plan of Subdivision has to be approved by the lender. As the lender holds a mortgage over the title, normally what happens, your solicitor lodges the plan of sub divison at the titles office after the bank has put a consent on the plan. The bank lodges the mortgage & title at the titles office and they are all allocated a dealing number. The Titles office then issue the new titles.
It can take months for all this to happen and most lenders do not like allowing plan of subdivisions as whilst the documents are at titles office the lender is basically unsecured.
Before you do anything check with your lender and find out if they are willing to allow subdivisions on property they hold as security.
Kerri
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
Also the lender will also need valuations done and will also require new mortgages to be done over all titles for the new subdivision.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
I am in this same boat.
Has caused lots of grief. Takes 6-8weeks just too register the approved plans and the lender takes all the new titles until you negotiate, refinance or gear down the loan to allow them to release some security.
I have to say, no bank likes to reduce their security.
Byronent
Adelaide SA
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