Process/cost of buying land from neighbour

afm_2

Hi all,

I am after some advice regarding the process and cost of buying some land from my neighbour. Does anyone know what needs to be done in terms of documents, mortgage lenders, etc?

I'm just looking to buy around 10sqrm of their front lawn but I guess that this has to be reflected in the deeds/Land Registry and that the mortgage lenders need to be informed as well. Does anyone have any experience doing this?

Many thanks for your help!

Land_Registry

As you rightly state the mortgage lender(s) will need to be involved and invariably they need to consent as well. As such they often also insist on your using conveyancers to complete the process.

The registration process is completed by way of a Transfer of part (TP1) and our online guidance explains what is required from that perspective

afm_2

Many thanks for your reply. Do you have any idea of what type of costs would I be looking at?

brightontraveller

Find out LTV before spending a penn....
If sellers have mortgage the LTV (loan-to-value) after sale of land, devaluation of the property is all that really interest lenders?
Lenders can insist monies go to them not the homeowner (lowering the loan /mortgage )
Most LTV cut off point is 75% ish
Most insist on valuation (don’t be surprised if there valuation and real world are miles apart).
Fees Solicitors, land registry, valuation etc

From personal experience of lenders they tend to value anything very high (dependent on LTV) Most aren’t interested at all unless it greatly lowers the mortgage....

cyclonebri1

my family asked an estate agent recently what adding a good sized chunk of garden was worth they said £50K.
This was for a 40yards chunk of land to the back of a 250K house

They also asked what we should sell a narrow piece of land that is our rear garden but underhangs their rear garden.
Answer was 10% of the value of their house.

afm_2

Thanks! Just another question: would this new bit of land be registered separately from the rest of our property? I would like it to be part of my plot and not a separate parcel.

Also, wouldn't if be sufficient for me and neighbour to write up an agreed boundary instead of changing all documents? If we agree on a new boundary line, even though it is different from what's on the deeds, would we still need to go through all the hassle of registering this small bit of land? He might agree as it will benefit him in some ways as well.

cyclonebri1

afm wrote: »

Thanks! Just another question: would this new bit of land be registered separately from the rest of our property? I would like it to be part of my plot and not a separate parcel.

Also, wouldn't if be sufficient for me and neighbour to write up an agreed boundary instead of changing all documents? If we agree on a new boundary line, even though it is different from what's on the deeds, would we still need to go through all the hassle of registering this small bit of land? He might agree as it will benefit him in some ways as well.

Sorry, can't help with that, we/they purchased 15 acres, 1 acre extra is now considered "domestic courtilage"

brightontraveller

From a lenders point of view its LTV they go on, With valuations size is often irrelevant They are often based on benefit to buyer not so much seller e.g you need 3 sqm of land to be able to build a house they most certainly don’t value it on the devaluation of seller’s property but on the increase in value of the buyers land ( think of a number double it add 10 )
You can have it registered included on title or on its own , If you have a lender also you may require there permission to add it to yours as adding land doesn’t necessarily mean increase in value it depends on the liabilities, convenient, easements etc the land brings with it

You really need professional legal advice when buying land and you certainly can’t come to agreement with neighbors who have mortgages on it without there lenders permission or shoould I say if you don't care if you actually own have rights to it you cant ?