HELP! Buying a property to sell off some of the land

[Kathryn Smith]

I am looking to buy a home with enough land to subdivide (create a flag lot). My intention is to keep the house and sell the extra land. I have already done my homework with the city and know that a flag lot will be approved. The only problem I am coming up against is that to sell the land, I'd have to have the lender release the lien on the new lot so that I could sell it, which I am told they are hesitant to do since that leaves them with collateral that is worth less than the loan on the property (This will be my first investment property. It is a conventional 5% down mortgage, and I will be occupying the property).

Does anyone have experience doing this? Buying a home with extra property and selling off some of the land? Any advice? Anyone had a lender that released the lien on the land you wanted to sell? Just looking for more insight into if this is possible before I close on this property.