Selling off Garden Land

Mr_Nimoy

I am considering selling off part of my garden The two interested parties have newly built houses - the gardens of which lie adjacent to my own large garden. Each plot would be roughly 150 sq yds area. How do I put a value on these plots when it is likely that they may only serve as additional garden space.

Planner

Mr_Nimoy wrote: »

I am considering selling off part of my garden The two interested parties have newly built houses - the gardens of which lie adjacent to my own large garden. Each plot would be roughly 150 sq yds area. How do I put a value on these plots when it is likely that they may only serve as additional garden space.

Likley or definatley only serve as additional garden space? is there room to create access to them for vehicles through the remainder of the other peoples gardens? (im thinking development potential which will greatly alter the price).

Mr_Nimoy

Thanks for the prompt reply Planner. Absolutely no chance of access through other peoples garden. The plots are roughly 20yds x 8yds. They may be large enough to build a shed on or possibly to extend the rear of their existing houses onto. This unlikely though as their gardens are relatively small and they are after extra garden space.

spuds_2

Pretty difficult to value - I would say though to be careful that you don't under-value your land. If you have a large garden losing a bit will not detract from your house's value. However, for them to gain more garden will substantially add to the value of their property. Whatever they pay you they will get back when they sell, so don't give it away too cheaply.

You could ask a surveyor, or try to find out what a building plot in your area would cost per metre and price it under that.

ukjoel

We are in a similar position. Garden on our road are 130ft long at the back (width is standard semi detached house) but the gardens that back onto ours our 20ft long and same width.

General guidance is what would it devalue your house by and what would it increase theirs by.

You see a lot of big new houses in the country with small gardens backing onto huge fields. House cost £500,000 and has maybe quarter of an acre plot.

Farmland behind it is worth 5k-10k and acre. Yet that house with four acres is worth 800k-900k. Farmers well aware of the value of this land.

Have seen cases at auction where people have bought 50-100 acre plots simply to get 2 acres at the back of their house and the minute they win they run to the second highest bidder to offer him 95% of the land for 90% of the price he just offered.

Funniest one I saw were 3 neighbours who all wanted different parts of the same plot. Plot was valued at 40k and they pushed it up to 320k when if they had spoken before hand could have spent 15k each and got what they wanted.

david29dpo

If you have a mortgage on your house, remember to tell the lender first.

poppysarah

david29dpo wrote: »

If you have a mortgage on your house, remember to tell the lender first.

I said this about a garage sell off but the OOP said the garage was technically not mortgaged as it was on a different deed.
I'd have thought the mortgage was given on all items conveyanced at that time... Otherwise you were technically getting something for free which wouldn't happen with garages and the like.

Mr_Nimoy

I suppose then that whatever price I ask for (within reason) it will be take it or leave it. I have found out exactly what price the house plots were sold for and the area of the plots. A calculation based on this would make price each of my garden plots at around £17000. Though this does seem very high.

spuds_2

By 'plot' do you mean the land before the houses were built, or with the house on it? I would think your neighbours are doing a similar calculation and have in mind a maximum amount they are prepared to pay. It may seem expensive, but what would having a bit of your garden add to the value of their house, though?

If it is a new-build estate you could look online and find out what houses on the estate with a bigger garden sold for. Deduct that price from how much they paid, and you would have a starting figure.

http://www.houseprices.co.uk/

I suspect in the end it may come down to saying, "Make me an offer..."

helenjg

Do remember that once it is in their posession they can do what they want. Id there the potential for them to put an annex building on there which could overlook your garden? Consider putting a convenant on the land to prevent them putting buildings up on them. If you are thinking that there mya be developemnt potential on the land then why not just apply for permission for a house yourself and sell off the plot with the permission?

It may be worth you seeking help from a planner to get their opinion on what the risks of selling the land would be.

Mr_Nimoy

By 'plot' do you mean the land before the houses were built, or with the house on it?

YesI did mean the value of the land before the houses were built on it.

If you are thinking that there mya be developemnt potential on the land then why not just apply for permission for a house yourself and sell off the plot with the permission?

My garden is totally land locked with no access other than my own.


I like the idea of the covenant - thanks !


Maybe I just start with asking the value I have calculated and see what the response is. I suppose that somewhere there will be 'common ground' for agreement. To be honest I am carrying out a series of home improvements this spring, and this may be an opportunity to finance the projects.

Thank you all for the input