Buying some land at the back of a garden from my Brother in Law

Living_in_a_duckhouse

I just had a question about buying land at the back of a property. Basically my brother-in-law has been struggling and wants to raise some money. At the back of his property he has land with access, but there is no planning permission on the land. There is an existing structure like a garage but it seems that it would get in the way more than anything and would need to be torn down if building was to take place. It is also next to a railway line. We have agreed on a price that we both agree with and just want to get the sale through as fast as possible really. Since we both agree there shouldn't really be any issue and I don't want to pay huge costs to solicitors, but I want to make sure that the sale is legitimate and so am willing to get them to look over the documents to make sure they are ok.

The main questions I have are;

1) How would we separate the land?

2) My brother in law still has a mortgage does that matter or effect anything? Will he need to get permission from the bank? I heard somewhere that the bank is happy if the money from the sale goes towards the mortgage.

3) Does it matter that I'm related to him? When he was struggling with his mortgage I made some of the payments in order to help them out because they were struggling and I had the money I was just wondering if that could effect it.

4) What forms would need to be filled in and where would they need to be sent?

5) Are there any pitfalls that could mean me losing my money? I understand that the market may not go up or the land may never get the planning permission, but they are risks I'm willing to take.

I have the money to potentially develop it in the next few years, hopefully to make a profit, whereas my Brother-in-law doesn't so I spoke to him about it and him and my sister are happy with the deal. If there's anyone who could give me a general idea of the forms needed and the possible problems so that I can prepare as much as possible, before getting the solicitor, to hopefully save time and money.

Thanks for all your help

DVardysShadow

For the sale to go ahead, your brother's mortgage lender would have to consent, which may require a valuation. I would suggest you get a conveyancer. There is more to it than a few forms.

zet_2

Oh dear. Family and property go together like a grenade in a tumble dryer.

Can he not sell the land on the open market, that would surely raise the most money, and likewise you can buy a more suitable piece on land on the open market?

If you make a success of the development, then your sister and brother-in-law might have a smoldering 'it-should-have-been-me' resentment.

Anyhow, you need to make sure the bank doesn't still have a charge on the land (i.e. have the ability to repossess the land as well as your brother-in-law's house), and get things worked out with the land registry, but the solicitor will be the one to sort things like that out, otherwise there is no point in hiring a solicitor at all.

Normally people cannot do their own conveyancing because the other side's solicitors will not accept that, but in this case you could have a go. However, you would need to read lots of conveyancing textbooks. Would it really be worth the time and effort for this one off?

Since this is a family matter, you might be able to find a solicitor who is willing to handle both sides (perhaps getting a colleague from the same office to do a short audit on behalf of your brother).

It depends, like everything else, on the part of the country, but I can't see why this would cost more than hundreds of pounds (rather than thousands). There is more opportunity of saving money by learning how to plaster or do plumbing or whatever.

Thrugelmir

To split the land you should fence it off with seperate access.

Whilst you have agreed a price for the land. You should obtain an independent professional valuation to avoid any potential issues. (see below)

Your brother could be liable to a tax charge on the disposal of the land. You haven't said what values are involved.