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 ?

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    The mortgage giver (the bank) has to make that decision. It should be easy to get their agreement, but you need it.
    – Aganju
    Dec 8, 2018 at 20:16
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    Also is the mortgage really on the house, not on the PLOT? Not sure about the UK, but in germany houses and plot are one unit with ONE page in the debt register, unless some pretty unusual legal stuff is done (which is normal i.e. for appartment houses where the land is then "common property" of the appartment owners).
    – TomTom
    Dec 13, 2018 at 15:06
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    @TomTom it'll be on the plot - but it'll still have conditions on what you can do in order to safeguard their security. Just knocking down the building would certainly not be acceptable, for example. Dec 13, 2018 at 16:56
  • That is not my point. The point is whether the mortgge is really on the HOUSE, or the pliot (including buildings).. Also as the OP explains it - if you present the building plans to the bank (which are part of the building permit) and you self finance the alrger house - the worth of the plot only goes up ;)
    – TomTom
    Dec 13, 2018 at 17:30
  • How do you plan to fund the building of the new house?
    – shoover
    Dec 13, 2018 at 18:02

1 Answer 1


The bank/building society will be concerned to maintain their security and will need to give their permissions.

If things work out as you plan it shouldn't be a problem for them, but given that you are obliged by the planning permission to demolish the bungalow once you build the house, you should make sure you have the permission in advance. They may be concerned about things like insurance and what happens if something goes wrong with the new house part way.

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