Selling part of land to neighbor advise please

KatyHall

Hello,

I am hoping for some advise. I understand this is an excellent place for information and for those that are willing to provide it I would be very appreciative of.

Me and my husband have for some time considered selling off part of our property to our neighbor. We have known the neighbor for many years, she became interested in the purchase after her husband past away and she now wants a project to focus on.

To paint the picture, we own a detached house with quite a large garden. At the end of the garden is a now deteriorating block of stables that I have used for storage and as an office from time to time.

I am wondering what considerations I should have about selling the stables to my neighbor.

What would be the process of selling them to her? Are there any tax considerations that we should know about etc.? Any advice generally would be helpful.

We have informally agreed a fee of £130k if this helps at all. Also, the power lines for our house are accessed via the stables - should I worry about selling the land that contains these - should I make a provision that states they should be looked after / we should have access to them at relevant times.

We really are very new to this and as such are open to any advice / experience anybody has had with this type of sale.

Thanks you

Katy.

shane42

if you are getting 130k for the land i think its a bit unreasonable to expect access......the supply cable to your house is not your property anyway, just get a solicitor to do the paper work, pay a professional to do their job

silvercar

Do you have a mortgage? If so, the lender will need to agree and be satisfied that the loss of part of the land won't effect the saleability of the property and that there is still sufficient equity in the remaining property to justify the mortgage.

At that value you also need to consider CGT. They are ways of doing this so that you can still consider the land to have had PPR relief, but you need to do things in the right order.

You will need a solicitor to create a separate deed for the land being sold off.

sunshinetours

You are unlikely to have a CGT issue if the land is all part of your main residence within the same boundary. Unless the stables have had commercial use ie rented out to others or the office accomodation officially registered as a business address for example.

Do as others have said and get a solicitor to draft paperwork properly so you cover the parts you are worried about

G_M

What is the neighbour going to do with the land/stables? Run a riding school? Knock down and develop into flats? Sell on to a developer in 5 years who will build flats?

a) do you want flats at the bottom of your garden and
b) what is the real value of the land for development (assumung planning permission is possible - do you know?)

Yes you'll need rights of access for your power lines etc and sort out separating the power (water? etc)

See a solicitor.

olias

Something here doesn't add up. You haven't mentioned any land (You only state you have a large garden, not paddocks etc, and you state the intention is to sell a deteriorating block of stables for £130K!!!!!!!!!!

For that money you could but a fully functioning livery yard with menage, barn, a dozen stables, all the infrastructure and about 15 acres.

Either the neighbour has inside knowledge that PP for housing is a cert, they've got more money than sense, or you are talking about a LOT of land (grazing/pasture usually goes for about £6000 an acre!).

You will need to confirm sale is agreeable to mortgage company. Confirm with utility company that services can be re routed. Instruct a solicitor.

Olias