We have purchased a bungalow with land for £800,000, we have a £500,000 mortgage. We have planning to build a much larger house next to our bungalow (so the bungalow will be part of the driveway once it’s demolished).
We will self fund most of the new building but once it’s built the bungalow will need knocking down as stipulated within the planning conditions. But the £500,000 mortgage will still be on it.
Can we just shift the mortgage to the new house ? (Same address) so a replacement dewelling effectively with much more equity than the current one ?