Marriage Value on a property with land

purplegerbil

Hello,
I am looking for a property with adjoining land for my horse. In my search I have found a property with just over 3 acres of land. The value of the property is approximately £50k more than buying the land and property separately.

After speaking to the Estate Agent they have said the £50k is what is called 'Marriage Value'.

When researching Marriage Value I have only found information for increasing the lease on a leasehold property. The property I am looking at is freehold.

Any help to understand what this is would be greatly appreciated.

Thanks,
PG

agrinnall

[FONT=&quot]http://www.carterjonas.co.uk/our-services/specialist/valuations/useful-information/jargon-buster.aspx

Marriage value[/FONT][FONT=&quot]
The value released by the merger of two or more interests in land, often when combining land parcels to assemble a development site.

This seems to be exactly what has happened to you, had the two items been sold separately they would be worth less than when bought as a single entity.
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PETIE

I think it means the value of the 2 together is more than the value if they were both sold separately

purplegerbil

Thanks, it is frustrating that we would have to pay a premium because the property and land are next to each other.

moneyistooshorttomention

Watching this thread with interest...

booksurr

purplegerbil wrote: »

Thanks, it is frustrating that we would have to pay a premium because the property and land are next to each other.

why is it frustrating?

clearly the idea of having land readily accessible from your house appeals to you and is (apparently) what you are looking for. Therefore married land is a valuable commodity in a class of its own compared to separate plots and so quite rightly results in a price premium (leaving aside the obvious matter of potential property development)

Davesnave

I've never heard the term, only understood the effect.

You may be lucky if the uplift on the overall value of a property and 3 acres of contiguous land is only £50k. I suppose it might mean that the house is modest, the land has no relevant outbuildings, you are in a cheaper area for agricultural property, or a combination of these.

People pay the premium for security, privacy and convenience.

For example if I owned land half a mile away, I would not know what was happening there much of the time.

Instead, because my house, fields & outbuildings are all within one ring fence, I have more control over what's going on. I can also just nip out and attend to things for short periods.

It also means I can let the chickens out in my PJs, like I did this morning, and then go back to bed! :rotfl:

Babbawah

Where I live, agricultural pasture is selling at £8 to£9 000 per acre.

A 1 acre paddock with timber/block stables and water supply has recently changed hands for £33k.

Even a modest property with adjoining land suitable for horses in my area will attract a massive premium, and when they come to market they're available for approx 8hrs.

As a part time developer, I would snap up the property, upgrade the house, parcel the land into 3x paddocks, sell off the house with 1 paddock and market the remaining 2x paddocks seperately

I'd be looking at a 30percent ROI within 6mths MAX.

lincroft1710

Buying a small parcel of land with a house dramatically increases the value of the whole as well as the price per acre for the land.