Property clinic: To remortgage or not to remortgage?

26 Feb

Q. Our home is situated in a small rural hamlet. Between our house and the one next door is a strip of land owned by a person who lives three doors down and who uses it to keep a couple of ponies. We would like to acquire the land as the owner is a very elderly man and we are fearful what might happen should he pass away and leave it to people who do not care about the two houses either side of the land. We currently have a small mortgage on our home so finance shouldn’t be a problem. Would we need to apply for a remortgage or will we have to apply for a separate mortgage on the land?

A. Yes, you could remortgage subject to your having sufficient equity in your home and a good credit rating. Alternatively, if you have had your mortgage for a while and are not tied in to any existing offer or deal, you could ask an independent broker such as John Charcol to take a fresh look at the whole market to find another more competitive deal. It could well be the case that if the land is not prohibitively expensive, a new, increased mortgage particularly with today’s excellent deals, actually costs less than you are currently paying. In the first instance though, you will need to try and strike up a dialogue with the land owner. Given the circumstances you present, this could be a tall order!

One Response to “Property clinic: To remortgage or not to remortgage?”

  1. Bertie Courchene February 1, 2011 at 1:31 am #

    After study a couple of of the weblog posts in your website now, and I truly like your approach of blogging. I bookmarked it to my bookmark web site checklist and will likely be checking again soon. Pls try my web page as well and let me know what you think.

Please share your comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Get every new post delivered to your Inbox.

Join 26,101 other followers