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    • ste1200
    • By ste1200 17th Jul 17, 7:42 AM
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    ste1200
    Buying a house, splitting garden, then reselling
    • #1
    • 17th Jul 17, 7:42 AM
    Buying a house, splitting garden, then reselling 17th Jul 17 at 7:42 AM
    Hi, I am interested in buying a house which has a garden which runs down the back of my home. The plan would be to effectively cut the garden in half, giving me a garden and then reselling the house and what's left of the garden immediately.

    Can anyone tell me what authorities I would need to contact to do this please, and also what sort of mortgage would be best to minimise cost ?

    The other spanner in the works is that there is a plot of land next to the house which comes with it. I would build a house on that then sell that. I'm hoping to break even and gain a garden for my current home.

    Thanks in advance
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    • marliepanda
    • By marliepanda 17th Jul 17, 7:51 AM
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    marliepanda
    • #2
    • 17th Jul 17, 7:51 AM
    • #2
    • 17th Jul 17, 7:51 AM
    Well planning permission for the house of course.

    If you have a mortgage on the property you'll need permission from the lender to take part of the garden for yourself

    Your timeline also doesn't make much sense. You can't split the garden and sell the house on immediately if you're building a house on the plot, unless your planning to split it even further and sell a house next to a building site?
    Survey Earnings 2017 - £163
    • ProDave
    • By ProDave 17th Jul 17, 9:13 AM
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    ProDave
    • #3
    • 17th Jul 17, 9:13 AM
    • #3
    • 17th Jul 17, 9:13 AM
    I guess a lot depends on your circumstances and how you are funding it.

    If taking a mortgage, I would probably keep quiet about the plans to sell immediately, just "buy" it, but look for a mortgage without early redemption penalties. Then put the house on the market with the smaller garden. At sale time your solicitor will split the title.

    The rub comes that the house may well sell for less with the smaller garden. Will you be able to take that hit and still clear the mortgage upon sale? if not you have a problem.

    The issue of building on the land is separate. You will need PP for that. How certain are you that you will get it? If you get PP before you sell the house with it's smaller garden, that may put off buyers as they don't want to live next to a building site. If you wait until you have sold and gained the garden before applying for PP the new owners of the house will likely object to your planning application.

    If you can afford it, the best would be buy the house, split the garden, build the new house, then sell the old one once the new house is complete, but that means funding the purchase and the new build before you sell, and none of us know your finances and how you would achieve that.

    It certainly sounds an interesting prospect, it's not every day you get a chance to enlarge your garden.
    • eddddy
    • By eddddy 17th Jul 17, 9:25 AM
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    eddddy
    • #4
    • 17th Jul 17, 9:25 AM
    • #4
    • 17th Jul 17, 9:25 AM
    I doubt you could get a mortgage - unless you claim you're buying it as a BTL. (Because I doubt that a lender would believe that you wanted a 'second home' next to your main home!)

    In reality, what you're describing is a development project, so you'd need development finance.

    You can try googling 'development finance' and contact some of the companies. They're likely to ask you for a business plan, and ask you about your track record in property development etc.
    • glasgowdan
    • By glasgowdan 17th Jul 17, 9:36 AM
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    glasgowdan
    • #5
    • 17th Jul 17, 9:36 AM
    • #5
    • 17th Jul 17, 9:36 AM
    This sounds like an insanely stressful and expensive way to have a larger garden.

    Surely the best thing for you is to move house when something suitable comes on the market?
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 17th Jul 17, 9:41 AM
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    ScorpiondeRooftrouser
    • #6
    • 17th Jul 17, 9:41 AM
    • #6
    • 17th Jul 17, 9:41 AM
    I have to agree with the above. You intend to buy and sell a house, split the plot 3 ways, build a brand new house on one part and sell that and hope to come out at the end with no more gain than a larger garden?

    Why not approach the seller and say "Can I buy half the garden?" They might say yes, and it would be a lot less trouble.
    • Ozzuk
    • By Ozzuk 17th Jul 17, 10:28 AM
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    Ozzuk
    • #7
    • 17th Jul 17, 10:28 AM
    • #7
    • 17th Jul 17, 10:28 AM
    Keep in mind you may not be able to sell the house for 6 months, and don't forget all the extra stamp duty and legal fees (for splitting the land as well).

    Doesn't mean its not possible, just tread carefully!
    • ste1200
    • By ste1200 17th Jul 17, 10:37 AM
    • 151 Posts
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    ste1200
    • #8
    • 17th Jul 17, 10:37 AM
    • #8
    • 17th Jul 17, 10:37 AM
    At the moment I don't have a garden at all. My home is perfect as it is, but the one thing that is missing is a garden. I've been told by he estate agent that valued it last, a garden would put around £30k on the value of the house, which wouldn't mean too much but having a garden would mean we wouldn't ever have to move.

    We could have a conservatory and also private space for my daughter to run around in. We have approached the seller before it went up for sale about the garden but they didn't get back to us.

    Thanks for the info, I'll start with the mortgage broker and contact the town hall for planning office.
    • ste1200
    • By ste1200 17th Jul 17, 12:57 PM
    • 151 Posts
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    ste1200
    • #9
    • 17th Jul 17, 12:57 PM
    • #9
    • 17th Jul 17, 12:57 PM
    Just to give you some figures.

    The property & land is currently on the market for £160K. The house doesn't need any work doing to it.

    The value of the house if I split the garden off is £100-£115K.

    The cost to build the new house is £50-55K and the value of the new house would be £110-125K.

    This is without any fees taken into account. So for the value it would put on my house, I think it is worth it, and if the house sell at the upper valuations, I could even make money out of it.
    • DoaM
    • By DoaM 17th Jul 17, 1:08 PM
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    DoaM
    So the value of the garden is, say, £45k?
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    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 17th Jul 17, 1:13 PM
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    ScorpiondeRooftrouser
    So the value of the garden is, say, £45k?
    Originally posted by DoaM
    That's the garden and the building plot, presumably.
    • ste1200
    • By ste1200 17th Jul 17, 1:30 PM
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    ste1200
    If it sells for £115k, then yes the garden and building plot will have cost £45k
    • ACG
    • By ACG 17th Jul 17, 1:33 PM
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    ACG
    It would not be a BTL as edddy suggestes.
    You would need a bridging loan, 25-30% deposit and the rates would be around .7% per month. You would also likely be stuck with the property for 6 months minimum.
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    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • lincroft1710
    • By lincroft1710 17th Jul 17, 1:39 PM
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    lincroft1710
    You must live in a very cheap area!
    • Cakeguts
    • By Cakeguts 17th Jul 17, 1:49 PM
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    Cakeguts
    Why not buy the house with the garden, move there and sell the one you are living in now?
    • ste1200
    • By ste1200 17th Jul 17, 2:32 PM
    • 151 Posts
    • 9 Thanks
    ste1200
    Why not buy the house with the garden, move there and sell the one you are living in now?
    Originally posted by Cakeguts
    Because the house is a 2 up, 2 down pretty much, and my house is a detached 4 bed.
    • stator
    • By stator 17th Jul 17, 3:17 PM
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    stator
    Can you remortgage your current house up to the highest LTV you can afford and use the cash to buy the other house?
    If you know anyone else then you might consider a joint investment, if you both trust each other. You buy the house jointly, split off the plots and split any profits however you negotiate it.
    Changing the world, one sarcastic comment at a time.
    • ProDave
    • By ProDave 17th Jul 17, 3:17 PM
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    ProDave
    Just to give you some figures.

    The property & land is currently on the market for £160K. The house doesn't need any work doing to it.

    The value of the house if I split the garden off is £100-£115K.

    The cost to build the new house is £50-55K and the value of the new house would be £110-125K.

    This is without any fees taken into account. So for the value it would put on my house, I think it is worth it, and if the house sell at the upper valuations, I could even make money out of it.
    Originally posted by ste1200
    IF you want the new house for yourself then I would go ahead and build the new house.

    Otherwise, forget it. you are NOT going to build a new house for £55K. We are part way through building a new house for ourselves and about £120K into the build and at least another £20K to complete it. Yes we are building a decent spec house to almost passive house standards, but even if we just went for "cheap as possible" it would still be way over £55K build cost.

    All I can suggest is you buy the package, sell the house with a smaller garden and sell the plot for someone else to build on, keeping half the garden to go with your existing house.

    In some parts of the country, there is no money to be made building a house. You would struggle to sell it to cover your costs. Leave it for someone else to build just to get the house they want, rather than a way to get a cheap house.
    • glasgowdan
    • By glasgowdan 17th Jul 17, 6:33 PM
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    glasgowdan

    The cost to build the new house is £50-55K
    Originally posted by ste1200
    This says it all. I doubt a builder could build their own home for this even if they did almost all the Labour single handedly.

    The numbers above may make sense but you'll have very different figures to tally up after it actually happens. What if the build costs £125k (conservative estimate)? And sale price ends up being 100k? How much would this extra garden have cost you?

    It could be:
    -160000 purchase price
    -125000 build price
    +100000 sale of original house
    +100000 sale of new house

    So you could end up paying 85000 PLUS, say, 20000 in fees, for a garden.
    Last edited by glasgowdan; 17-07-2017 at 7:34 PM.
    • Shelldean
    • By Shelldean 17th Jul 17, 7:07 PM
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    Shelldean
    A detached four bed without a garden?????
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