Building an additional property within the garden area of the main house ‘should’ make you plenty of profit!

But, unless you’ve already been through the ‘plot sub-division’ scenario before – hold your horses, don’t go charging-in guns a blazing (agreeing any purchase or transferring any money) until you’ve read a little further!
At this stage – let’s just say, if you can’t buy the ‘original property with land’ outright (pay for with your own money) – to sub-divide, then re-develop & sell-on to maximise your profits, please just tread carefully and carry out your research – possibly, by starting here…. 

The Scenario: You thought that you had found the ideal spot, a property sitting on a large plot – with a garden big enough to stick (build) another house on, that ‘others’ appear to have missed? So, you have a big enough deposit, you can finance the initial purchase through a Mortgage, you already know some trustworthy Trades (Builders, Plumbers, Sparks etc) that would help you with the Refurb of the original property, then – after securing the Planning Permission with the New Build, they could get on with that, BRILLIANT – Yes? Well, actually – that could turn into a resounding NO, that is – unless you have already agreed the plot sub-division with the Finance Co/ Mortgage Provider. Why – you may ask, quite simply because: Most (if not all) Mortgage Providers will secure the Loan on the Freehold, which means – after they carry-out their due-diligence & get everything tied down, they will hold the rights to The Title of the property (including the whole plot) which will be registered & recorded at the Land Registry. What that could mean to you is, they could STOP any further development of or on the land, which could/would cock-up your plan to quickly develop & cash-in on the property project.

Flip’n’Sell.it

You wouldn’t Plan to Fail, so – Don’t Fail to Plan! There’s enough that could go wrong even if you paid outright with your own money. So, be sure to….

‘HAVE THE DISCUSSION’ with your Mortgage Provider and Legal Representation (Solicitor!)

Tell them how you would want the whole project to proceed, they should then value the purchase on the sub-divided plot, which your Legal Representative would notify the Land Registry of. Resulting in – you getting the maximum benefit out of the Property Sales, and everyone else being happy with the information provided & shared between all buying, developing & selling parties concerned. 

All that’s now left for me to say – is:
Good Luck, I wish you all of the very (very) best with your UK property developments….