Profile picture for huevosman

Lot Split Question

Hello, I have a question regarding a piece of property that my parents own that can be split into two lots other wise known as being sub divided.

I have gotten the lot recorded with the city, and now the 14000 ft lot is two 7000 ft lots. If I want to build another home on the new lot but the home on the other lot has a mortgage on it do I have to get a partial release from the lender???? Or can I build a home on the new lot without asking the lender because I am not intending to sell the new lot or the new home. It would seem to me the lender would like the property with another home on it and a new lot because it makes the land more valuable.

Please let me know anything might know about lot splits.


  • May 07 2012 - Santa Cruz
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Answers (4)

Talk to the bank about a construction loan on the lot you plan to build on. If they do the construction (and even better) the permanent loan, the lien on the lots should be paid off as part of the cost of the new house,so you would not need a partial release. Though they may have granted sub dividing, I am confident their lien is still on both lots.........
  • May 09 2012
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Profile picture for huevosman
I actually worded that incorrectly, the sub division was accepted by the mortgage/ lender. Therefore the question is more specifically pertaining to the building without a partial release
  • May 08 2012
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Profile picture for AndreaSmolin
You might want to email your question to a lender in our directory.
  • May 08 2012
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The lenders lien is likely on the entire lot. They based their decision on granting the loan on a 14,000 sq ft lot, and they may not be interested in a partial  release .   I would suggest you seek legal advice asap since you already sub divided the lot without lenders knowledge/permission.
  • May 08 2012
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