Last month, one of our Country Living Loans Specialists highlighted the option of buying multiple parcels of land and the process that comes with it. Today, we’re going to focus on what to do if you already own multiple parcels or a larger, single property and would like to split up or sell portions of the property.
Reasons for a Partial Release
Some may ask, “why would I want to split up my property?” There are several reasons why a property owner may want to do this, the first being that they want to pay down their mortgage. Especially with larger parcels of land, an owner may realize they don’t need the full lot and would rather sell a portion for the ability to pay off or pay down their mortgage.
Another possibility is that you may want to build a second home or structure on your property. Some municipalities do not allow more than one dwelling on a single parcel, so you may need to split them in order to build.
The Fine Print
Some traditional financial institutions do not allow for partial releases, opting instead for a full refinance. You should talk to your loan officer about whether or not a partial release is an option for you.
If you are a Country Living Loans customer, to be sure that performing a partial release is right for you, it’s best to talk to your Mortgage Specialist or Loan Coordinator.
There are also several fees that may be incurred during the partial release process, and you may be asked for an updated appraisal or survey of the property. Country Living Loans may also require a portion of the proceeds of releasing and selling property be used to pay down the existing mortgage loan.
Every scenario is unique, and products vary widely by lender and location. If you are interested in learning more about partial releases or multiple parcels, reach out to your local Country Living Loans Mortgage Specialist to see what option is right for you. We specialize in rural lending and look forward to working with you to finance your dream home or property in the country.
Contact your local mortgage specialist for more information at CountryLivingLoans.com.