Neighbour wants to buy half of my garden to create building plot

rebelheart15

I have a large back garden (approx 200 feet x 40 feet) and my neighbour has recently approached me with a view to buying half of it.

The corner plot of the street (next to my neighbour's house) have already sold their back garden and there are two homes built there on a side road. My neighbour's proposal is to use his right of access on this side road to extend it and use half of his garden, and half of mine, to create a building plot. He has put in for planning permission to this effect, an "outline application with some matters reserved" for a dwelling to the rear of both our properties. He would then sell the plot with planning permission should it be approved.

However all of this has so far been on a verbal agreement, nothing is in writing and no prices have been agreed which is starting to concern me.

The back half of my garden hasn't been touched for years and it is very unkempt with some very mature trees and a lot of general shrubbery. It would need appropriately fencing off and cutting down. Having viewed the proposal online I have no objection, my garden would still be at least 25-30m long and I don't see any issue/risk of being overlooked etc. The proposed dwelling seems very inkeeping with the area and I can't see how it would devalue my home.

I would never be able to sell off my garden as it stands because I have no access - therefore I need my neighbour to sell his half before my half becomes viable (as is planned). However my neighbour would be unable to create a substantial building plot without using my garden. Therefore we are both helping each other.

But financially I have no idea what to expect or ask for. I have no reason to think that my neighbour would try to rip me off but I would like to adequately protect myself and receive a fair price. Perhaps selfishly I would like to do as little as possible with the garden and would be happy for my neighbour to take it off my hands, fence it off and cut it down accordingly. Similarly it would be my neighbour doing a lot of the leg-work, organising the plot's sale, the planning application etc - and clearly the work he has put in has to be accounted for when all I would effectively be putting to the table is my land.

I know that garden land is worth a lot less than land with planning permission on it and depends on location. Should my neighbour's planning application be successful, would that impact the price I can ask for my half of the garden? And more importantly if the planning application is approved and my neighbour goes through with buying my land, who do I need to consult? Would it be worth getting the land independently valued? Would it better to ask for a certain percentage of the final sale price of the plot instead of a set figure?

Hopefully this makes sense and I'm aware that I will need professional input, but I would be very grateful for any help you could offer. Thanks for reading.

becominganobsessivesaver

I am by no means an expert but I think your neighbour can apply for planning permission without owning the land. I would suggest this as a first move (value will obviously be higher with that) and then get some independent valuations.

Pincher

Punjabis in Southall build a shed at the end of the garden to house migrants, the council comes and pull it down. Sell the land and it's OK to build on it? They put up houses with a certain distance apart for privacy considerations.


A house with windows will directly overlook your rear neighbour's garden. My rear neighbour is already unhappy about me being able to see into his house, even though we are two garden lengths apart. She put up trellises and planted a tree to block the line of sight.

moneyistooshorttomention

Privacy considerations do indeed apply - to both present and proposed future houses.

Gardens that size tend to indicate its the type of area people "settle" in and then expect that properties will be "normal" and that means private back gardens.

booksurr

yes you need a professional valuer (Chartered Surveyor who specialises in land valuation) otherwise you will go to your grave forever wondering if you were ripped off

yes you should ask for a %

start at 50/50 as, although he may be doing the legwork and have the access, his plan is a non starter without your land so you are equal in reality

get over the idea your garden is overgrown and that he is buying "garden" land, he isn't, he is buying a building plot and as a very rough idea when you build a building 1/3 of the final price is the land, 1/3 is the cost of building and 1/3 is profit. So if you want an idea of the numbers involved take 2/3 of your current house value and split that 50/50 and see how he reacts to that figure.

googler

The condition of the land doesn't devalue it as a building plot.

You hold all the cards. If you don't sell, he's wasted his money on the planning application and all that went with it. If you don't sell, he can't proceed.

Find a surveyor who specialises in land transactions like this.

Prothet_of_Doom

Sounds like a win win situation. His plot worth nothing without yours, your plot worth nothing without his. You should realise that he has taken on a little risk by paying for getting the plans and putting them through planning, and has exercised some effort and vision, so maybe you could suggest a simple 45/55% split.
Or you could play hardball.
What you actually need to know is what your house is worth with the garden, and what it's worth without the garden. If the split you are offered is significantly more than the difference, then great, but if it's not, why bother?

kazwookie

Up your price, he can do nothnig without your land.

It might be over grown, but a large JCB type machine, will have it cleared down to top soil in next to no itme at all.

LeoTLion

How about asking for 50% of the final sale price, less an agreed amount to cover half of the fees and all of the time your neighbour has put into the planning process. This way you can have some confidence that you're not being screwed.

eddddy

A few comments:

- it may be easier not to sell your land to your neighbour. Just advertise it for sale as a single building plot, and the buyer buys half from each of you in linked transactions.

- a developer normally expects to cut down trees and clear land - so you don't have to do that. (But some people cut down mature trees before submitting planning applications, to avoid emergency 'Tree Preservation Orders'. Obviously, there are moral questions around that.)

- Fences... you can sell the land with a covenant that the buyer must construct and maintain a fence of a certain type and height.

- If your property is mortgaged, you will need the bank's consent to release some of the land.

- a percentage split seems sensible. I'm not sure that a surveyor could help you decide that percentage. It's just down to negotiation really.

antrobus

rebelheart15 wrote: »

... Should my neighbour's planning application be successful, would that impact the price I can ask for my half of the garden? ....

Yes.

rebelheart15 wrote: »

...And more importantly if the planning application is approved and my neighbour goes through with buying my land, who do I need to consult? ....

A solicitor to handle the conveyancing of the land. If you have a mortgage on your property, you would also need your lender's consent.

rebelheart15 wrote: »

..Would it be worth getting the land independently valued?

I would say, yes.

rebelheart15 wrote: »

... Would it better to ask for a certain percentage of the final sale price of the plot instead of a set figure?...

Depends. Is the neighbour intending to do the development himself, or is he going to sell it on to a developer?