Selling part of garden to neighbour - Looking for some advice

london21

roryfraser91 said:

Hi There, hi

As the discussion title says, I am in the process of having discussions with a neighbour to sell the end of my garden. He has had a valuation from an estate agent that it would add around £10000 to his property/make it easier to sell in the future. 

After initial discussions and research on the internet he has offered to pay for both sides solicitors. He as made an initial offer of £5000 for the land, half the costs of what it is valued so still somewhat an investment. Has anyone else had dealings like this where a 50/50 split has been suggested? Personally i'd feel more inclined to go for 65/35 or 70/30 as I would be losing land and only gaining half, whereas the other party is gaining land, improving there garden and property value/saleability. 

I've attached a plan with rough dimensions of the part of the property that is being sold.

Thank you advanced for any responses!

Personally I would not sell any part of my garden for £5,000.

if it could potentially add £10k why are you accepting £5k plus fees? What is the benefit to you? 

The estate agent is working for your neighbour, you need a third party valuation with no conflict of interest. 

What is the added value other than the £5k to you?

it’s a no for me personally. 

74jax

Have you had this piece of land valued yourself? Not by a previous owner or by the prospective buyer of land.

Are you extremely friendly with this neighbour, that you are willing to add 10k to their house by paying you 5k - if it was family I could maybe understand.

If you had the option of buying number 10 or number 16, would you go for the larger garden? I would, but I love a garden.

How have the prices compared from those with smaller gardens to those with larger, if the prospective buyer is adding 10k..

No way, at all, would I sell and reduce my garden (if I did it would only financial sence to pay off mortgage - otherwise you are still paying a mortgage as if owning it) but I love being outside.

If I was adament I was, I'd have it valued and definately ask other neighbours first (13 and 2), just as if I was selling a house - I wouldn't just offer to one person. 

Atomix

Just to re-iterate. It actually doesn't matter what the value is, the neighbour wants it, they pay double if they're that keen.
As it isn't for sale... So Im very sorry you've bought a house with a garden that you think is too small, compared to your neighbours, oh you wish to buy some of my garden, that isntfor sale, for the inconvenience and hassle to make it worth my while - £20k. And just to add, no-haggling, if you don't want it - that's fine, because we didnt force you to buy a house with a garden that you think is too small, but its £20k, please don't approach us again (unless you're willing to pay what we're asking) - this is our offer - thank you  .... goodbye. 

assuming your in an expensive part of the country - £20k is nowt...

oh, you dont want to buy it... it wasnt that important to you then - 

eidand

look, if his house value goes up by 10k that means yours is decreasing by 10k as well. I would ask for 20-25k and he pays all the legal costs. if he doesn't like it you can tell him to jog on .


oh and by the way, you don't need to be "fair". It's your land after all, if he wants it he needs to make it worth your while not take the p1ss.

Sebo027

eidand said:

look, if his house value goes up by 10k that means yours is decreasing by 10k as well. I would ask for 20-25k and he pays all the legal costs. if he doesn't like it you can tell him to jog on .


oh and by the way, you don't need to be "fair". It's your land after all, if he wants it he needs to make it worth your while not take the p1ss.

25k for a piece of land valued at 10k - valued in an overheated market, at that - seems even more ridiculous than the original 5k offer.

London21, you should consider:

• Both properties should be surveyed to quantify the reduction / increase in value as a result of making the change. Again, in my view the buyer should foot the cost of the survey. 
• Impact to both mortgages (assuming both have one) - and fees associated with the change.
• Solicitor fees and costs associated with updating the deeds and registering the change. In my view the buyer should cover these costs too. 
• Fair price for the land. If it was me, I would want the buyer to pay market value and cover all associated fees. The only exception would be if I really needed the money - that's a personal decision only you can answer. 

TBagpuss

As others are saying, you would need to get your property valued/surveyed to show how much it will reduce in value if the and is sold. That number + your legal costs  is your starting point.

If you have a mortgage, you will need your lender's consent.

Market value is difficult to ascertain - the land might be worth £10K to your neighbours, but it wouldn't be worth anything to anyone else , as a small, landlocked piece of garden, so it makes more sense to be looking at what it adds to the value of his property and what it takes from the value of yours. 

eddddy

Assuming the buyer is an owner/occupier (as opposed to a developer, investor etc), it's probably more of a lifestyle decision rather than a pure business decision - so a professional valuation might not be that helpful.


Perhaps, it's more a question of...

• How much is the buyer prepared to pay to have room for a trampoline for their kids?
• How much is the buyer prepared to pay to have a large patio with a barbeque for entertaining friends?

etc.

Some people would only be prepared to pay £5k for that improvement in their lifestyle. But other people might be prepared to pay £20k for that improvement in their lifestyle.



(But if the decision also impacts the value of their house, I guess they would take that into consideration as well.) 

Gavin83

eidand said:

look, if his house value goes up by 10k that means yours is decreasing by 10k as well.

No it doesn't. If a house has a small garden increasing that is likely to add reasonable value. If a house already has a huge garden and loses some of it it's unlikely to affect the price that much, the garden is still huge.

The valuation side of things is largely irrelevant anyway. OP, you need to decide what you're willing to sell it for. Put that offer to them. If they're willing to pay it then great, if not either walk away or negotiate. If you don't want to sell then don't.

However don't waste the neighbours time and money. If you've no intention of selling, it doesn't make a difference or you want a huge amount of money then don't insist on them getting a surveyor in first. Be straight with them from the off.

Despite what some say on here I can't see how the neighbours are being in any way unreasonable or cheeky. You've got something they want, they've made you an offer. It's your choice what you do with that offer.

Countrysider

I can certainly see why he wants this. It's a small loss to you but a huge gain to him, not only in terms of size but also it straightens out what must be an awkward rear border for him. He really does seem to have the worst garden on that side of the street, both in terms of size and irregular angles. 

roryfraser91 said:

After initial discussions and research on the internet he has offered to pay for both sides solicitors. He as made an initial offer of £5000 for the land, half the costs of what it is valued so still somewhat an investment. Has anyone else had dealings like this where a 50/50 split has been suggested? Personally i'd feel more inclined to go for 65/35 or 70/30 as I would be losing land and only gaining half, whereas the other party is gaining land, improving there garden and property value/saleability. 

I actually think this is a very fair offer and I see what he means by sharing the uplift. If your house backed onto nothing then a small square at the rear of it would hold almost no value - its only value is derived from his house being there so, in a sense, he adds value to this section of your garden.  

Whether you do it is really up to you, your finances, and what you currently use that section of your garden for. I can't see it devaluing your property by anything really given your neighbours on one side will have the same sized garden. You might be able to negotiate £1 or £2K extra, but really no more than that. 

GDB2222

I was recently approached to sell a very small amount of land. We have now agreed terms at 4.3 times the initial offer. Plus, the other party will pay all costs. 

The higher figure was determined by a surveyor, acting for me, whilst the initial offer may perhaps have been rather hopeful. 

Values in a situation like this are hard to determine, of course.