Property developers queuing up to buy my garden

Hoploz

martinsurrey wrote: »

I second this, but its an acre, so 0.4 hectare.

selling part of your garden on your main residence is capital gains tax free (through PRR, as long as its being your primary residance throughout ownership) as long as the grounds are under an acre,

https://www.gov.uk/tax-sell-home

selling part (so part of the garden) is still a disposal for PRR and CGT.

So, if I decide to sell 2 acres of my garden does this mean I would be liable for CGT? And if I sold it in two lots I would avoid it?

Have never considered CGT up to now!:eek:

Hoploz

Has anyone considered one of those covenants whereby you get a slice of the uplift in value if the land is developed after you sell?

lincroft1710

Hoploz wrote: »

Has anyone considered one of those covenants whereby you get a slice of the uplift in value if the land is developed after you sell?

Overage, can cause problems.

IMHO if vendor thinks land has "hope value", then should reflect in the sale price, or get outline or detailed pp and sell it reflecting this.

Hoploz

Two properties local to me have recently sold and had their gardens built on. In both cases the owner has sold the house and the land to the developer and moved on. I know for sure in one case they were priced separately, ie. the owner got 1m but the house is listed on Land Reg sold prices as 700k.
In another case some years ago a developer had bought a house with land and I was trying to buy the existing house after the land was divided up.

I think it would be difficult to keep the house and try to sell it when you've already sold the garden off, due to the uncertainty. Having said that, I'm sure you would be much better financially to sell separately as the houses seem to have later been sold for a similar market value with smaller gardens as they would have been with the bigger garden. Even better if you get someone in to build them yourself of course, then flog and get the full profit Kerr-Ching!

RAS

As said previously, we sold the land (jointly with the neighbour) to a developer on the open market.

IMO he overpaid but that was his problem.

We marketed the house immediately afterwards, and sold it within 3 months at a time when little else was moving.

Given the high land price the developer had to go back and increase the size of the build which delayed the start date. There were restrictions in place on working hours.

Looking at the most recent sales, the old house (extended) was valued at about the same as the new houses built on the plot when they last sold at about the same time.

patman99

What about access to the land?. The following actually happened in my village -

A developer started purchasing gardens to form a new development of bungalows. They had purchased 4 of the 5 plots they needed. Trouble is, the 5th plot sat between the 3rd and 4th plots and the owner of the plot had purchased the house because it had a large garden to accomodate his large family.

He flatly refused to sell. As a result, the owner of plot no. 4 went bankrupt and the developer was only able to build the one bungalow.