Partial Release of Land

[Brooke Morton]

Hi all! I own a cabin that sits on 1.5 acres. I am trying to do a partial release of 0.5 acre so that I can build a separate structure on that piece of land. The reason I need the partial release is that I intend to use the land as the equity/downpayment in a construction loan to build this new structure. Right now, I am in the process of writing the mortgage company and requesting the partial release. They are asking me how much compensation they (the mortgage company) would receive in exchange for releasing this piece of land. What is the lowest I could say? $0? $100? How does this work? Any advice much appreciated!

[Wayne Brooks]

@Brooke Morton You need further clarification. I believe their question is in regard to the Value of the remaining 1 acre, to assure they still have a property worth More than your mtg balance, as security. This may require a partial pay down of your mtg if the balance is greater than the remaining value.