selling property to developer

callum1407

I have been approached by a property developer who wants to buy my house and garden. They are planning a small development of houses in land at the rear of my back garden. The only way to access this would be via my house which would be knocked down and a small road built. This is still in the early stages, no planning permission has been submitted. I would sell for the right price, should I look to get a % of what my house is worth. On the other hand I like where I live and am happy to live here.

moneyistooshorttomention

There is some formula somewhere on the Internet of the way developers work out what price they are going to regard as feasible to pay for land in order to make the profit they wish to make.

Maybe someone has a link to it? I don't recall where I've seen it.

Though, in your position, (ie you like the house) I doubt any developer would be able to offer you enough to move.

ognum

I guess if you don't sell one of your neighbours might and then you will have a development in your back garden, almost.

notbritishgas

Why not offer to swap your property for one of their new builds.

chris_m

callum1407 wrote: »

I would sell for the right price, should I look to get a % of what my house is worth.

Well, I would hope that you'd want 100% of its value - at least

Dan-Dan

Whatever you do , let them make the first move , dont give them a figure first

silvercar

moneyistooshorttomention wrote: »

There is some formula somewhere on the Internet of the way developers work out what price they are going to regard as feasible to pay for land in order to make the profit they wish to make.

Maybe someone has a link to it? I don't recall where I've seen it.

Though, in your position, (ie you like the house) I doubt any developer would be able to offer you enough to move.

1/3 land, 1/3 build, 1/3 profit.

clark090

If you are happy to live here then do not sell it. I am sure market price of your property will be on high rate or high demand, that why they are keen to buy it for their profits. If you love to live here then live here, do not sell it.

Freecall

If you do decide to go ahead and sell, make sure you use a solicitor experienced in such sales.

In addition to the usual contract of sale they will need to get personal guarantees from Directors as you would be vulnerable in the event that the company failed to complete.

You would not be the first to be left with an obligation to purchase with no funds from a contemporaneous sale.

eddddy

I guess the biggest question is... is your house/garden the only one that the developer can buy to get access to the site?

Or has the developer approached your neighbours as well? If so, I guess he would go with whoever's house is cheapest - and/or whoever is easiest to work with.

(Just a suggestion - hold out for the price you want, but be helpful and cooperative. If things go ahead, you will need to work with the developer on various legal stuff. He won't be so keen, if you seem difficult.)

But if you genuinely have the only property that could provide access to the development site - I would think about instructing a land agent to value your property and act on your behalf.

The land agent would assess the value of the development (and how much profit the developer is likely to make from it), and use that to determine how much the developer is likely to pay you.

eddddy

.... also, the developer probably wouldn't just offer to buy your property outright.

It is more likely to be an 'option to purchase' or a 'conditional contract', that is dependent on the developer getting planning consent.

You might be bound by the option/contract for up to 2 years (whilst the developer appeals to try to win planning). If the developer is unsuccessful, you get nothing.

And during those 2 years, you would be unable to sell to anyone else.