KenA

Hi
I have 800 square meters lot and a house in the front of the lot

the backyard fits another house.

can I build a 2nd house and sell them separately ?

Location : St Thomas Ontario

Atlantic Xpat

That will be determined by your municipality’s zoning regulations. I suggest you google or call them and ask. Have any of your neighbours done something similar?

DandNHill

You’d never to obtain planning to sever the lot as well as planning to build the house.
Find out from the city first what their requirements are.

ArthurBrit

As mentioned by others, you would need to get authorization from zoning and also the appropriate building permits. Start here, make some calls, and research as directed

Planning and Building Services - City of St. Thomas (stthomas.ca)

Pulaski

Assuming you have a mortgage you'll also need permission of the lender to split the lot, as the mortgage will need to be adjusted and maybe also secured on the vacant split-off lot, if the loan to value ratio is marginal. Otherwise there would be a diminution in value of the security (your home) for the mortgage lender. They will likely perceive a loss in value anyway, due to another home being built close to the home currently providing the mortgage security.

So whether this is likely to be agreed by the lender may depend on the value of your home compared to the value of the mortgage. In other words, if you're already marginal on loan to value ratio then splitting the lot may be difficult, but if your home is already worth twice the value of the mortgage then even a 20% decline in the value of the security, (due to reduced lot size and another house very close), the mortgage lender should still have ample security coverage for the loan, and would be more likely to agree to the split.

Expect to have to pay admin and mortgage filing fees to the lender to be allowed to split the lot.

KenA

Thanks all
that was really helpful

CanadaJimmy

Some cities do allow what are known as ADUs or Accessory Dwelling Units, these don't require subdividing the lot to construct a second house on the property and are relatively easy to get approval for. But a quick Google search it looks like St Thomas doesn't have such provisions in their zoning. Sometimes you can subdivide but it is a very involved process with a lot of requirements, depends on the code as others have mentioned, and no guarantee of approval. In my area someone wanted to subdivide one lot into three and all the neighbors showed up to the public hearing complaining about traffic and got it shot down. All this and we still wonder why Canada has a housing shortage...

Kingsboy48

Ottawa are encouraging intensification and as such are allowing small homes to be built in backyards and, presumably, allowing them to be sold but as suggested only your municipality will be able to give a definitive answer.

Pulaski

Maybe there's shortage of land?