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

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Comments

  • martinsurrey
    martinsurrey Posts: 3,368 Forumite
    edited 13 July 2015 at 2:04PM
    eddddy wrote: »
    Some LPAs require an s106 unilateral undertaking just for one house, and it must be submitted as part of the planning application.

    Your username suggests that you are in Surrey.

    Here's an example of a refused planning application in Surrey - for a single bungalow in a back garden.

    Reason 2 for refusal states:





    It's not as simple as that.

    The people that signed the s106 unilateral undertaking will be legally liable to pay at commencement of development. (i.e. the owners of the land and their lenders when planning was applied for.) That's why 'unsophisticated' lenders might get scared.

    When the plot is sold to the developer, the seller's solicitor should ensure that the buyer indemnifies the seller for anything payable under the s106 unilateral undertaking.

    (If the seller's solicitor doesn't do this correctly, the lpa could claim the money from the original lender.)

    google... MO/2014/0869/PLA appeal ...and the top link is a PDF of the successful appeal against that decision.

    "Finally, I note that in light of the Ministerial Statement of 28 November 2014 and allied changes to the Planning Practice Guidance, the Council has withdrawn its requirements for contributions towards local community infrastructure and affordable housing."

    s106 agreements were replaced with CIS payments in cases like this and CIS paymetns are not always needed...
  • Annie1960
    Annie1960 Posts: 3,009 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 13 July 2015 at 8:00PM
    I doubt very much whether your neighbour would actually buy your land. Presumably you will both sell it jointly to a developer, and get 50:50 each (assuming the size of both plots is the same). There may need to be an adjustment for the costs your neighbour has incurred in gaining the consent.

    If consent is given, then what you have is called a ransom strip. You can name your price, and don't sign anything until you're happy.

    EDIT: Don't forget that CGT may also be due.
  • SailorSam
    SailorSam Posts: 22,754 Forumite
    10,000 Posts Combo Breaker
    The most important factor in working out the price of land is ..... Where are you ?
    Liverpool is one of the wonders of Britain,
    What it may grow to in time, I know not what.

    Daniel Defoe: 1725.
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