I am in a situation where I have 30% equity in a 420k property.
Due to my marriage breakdown I am looking at how I can take out some ‘value’ so I can ‘move on’.
The block is approx 1.5 acres, with the house almost in the center of the block.
A property across the road has done exactly what I have in mind.
My property is extremely wide around 43m. So it looks possible to battleaxe the existing house, and create 2 new road side blocks. To me it seems doable. I don’t have plans, the time or the desire to build, I just want to cash in the land and get out.
It would mean sub-dividing the front 1/3 of my property, into 2x 800ish sq blocks, and selling them off. And have my ex take on the loan/refinance it out of my name and into his.
I contacted my mortgage lender and was told I was able to sell a portion of the block and make a profit, but I had to keep a min of 30% equity in the original property.
Figures:
Original loan in its 2nd year approx 300k
After 2 years, still paying interest and owe almost the full amount borrowed.
The blocks across the road sold for 90k each (in the last 2 years) and are approx 550 sqm
I am having a problem getting my head around this 1/3 equity amount, what will it end up costing me. I appreciate it all needs to be calculated from current valuations. But I just need to know if this ‘idea’ is in the game park.
So not only can anyone help me, does anyone understand what I an asking
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