My son has a detached garage at the edge of his garden and his
neighbour has offered to buy it from him. My son would really like
to take up this offer, but his mortgage lender is refusing to agree
to the deal. Is there anything he can do?
The lender has a financial interest that has been secured
against your son's property. This means the lender has as much
interest in the property as your son and has some authority over
what happens. Before he could agree to sell the garage your son
would certainly need consent from the lender for the release of the
garage from the registered mortgage.
To work out whether the sale of the garage will affect the
security the lender has against the property, they will take into
consideration the value of the loan ratio to the value of the land
minus the garage, and its resale value with or without the garage.
This is also something your son should seriously consider. In
selling the garage to his neighbour your son will receive a
