Buying some of neighbours garden........do we have to inform the mortgage company

[slalomsuki]

Our neighbours have offered to sell us some of their garden. We have accepted and agreed a price and have put in in the hands of a solicitor to do the necessary legal work.

Our neighbours have said that they have had to inform their mortgage company because the value of their property is going down when they sell their garden piece to us and it is costing them money to have this put on their mortgage.

My question is do we have to do the same? we would like to avoid telling them fo no other reason than it will cost us money and which we feel is unnecessary and we have funds to pay for the purchase without going through them. Our solicitor is a bit unclear on this

You'd need to have the deeds altered or drawn up for that land but not sure it needs to be changed for mortgage purposes as you presumably aren't borrowing against it. Solicitor should know or be able to check.

i would have thought you wouldnt need to as you are INCREASING the value of your property, not reducing it any way

I'd be worried that the Solicitor is unclear on this.
Would it hurt to call the mortgage company to find out?

You don't need to tell your mortgage company. You can just own that part of land outright even though it is adjacent to mortgaged land. You will own two separate "plots" of land at the Land Registry, one with a mortgage and one without. If anyone wants to purchase from you in the future they can join them together at that point with no additional cost to them.

Agree with Willmouse. Our neighbours gave us a small piece of land - they had to tell their mortgage co and we did not.

Your property will have a title deed number. Your neighbours property will have a different title deed number. This piece of land should be separated from your neighbours deeds and given an entirely new title deed number.

You then own your original property with its original title deed number. You also own this other bit of land with the new title deed number. If you joined two and got them put onto one title deed, I would think you would need to tell the mortgage company. We just carried on owning 2 sets of deeds when we did it so did not tell mortgage co.

Thank you ladies, thats what I thought about not having to tel, the mortgage company