Security for new titles

So say you have a loan against one title, you then sub-divide the loan into two titles.
Does the lender have security against both titles now or just the original title (for original house)?

 

If a bank has a mortgage you cannot issue new titles without their consent. They will usually grant consent and allow subdivision if they have enough security.

 

You need to seek permission from lender to split into 2 titles after the surveyor has done their thing. I would talk with lender first to verify the best way to approach inline with their process.

Once titles are issued an if circumstances allow you can take one of the newly titles properties to another bank if that fits your goals.

 

So a majority of developers speak to their lenders first before even commencing or?

 

As part of your mortgage contract you will need to inform the lender as to what alterations you will be making to the existing security before you do so in order to comply with the original mortgage contract.

Not everyone does this, technically you should.