Buying Land from a County Council. Anyone got Experience?

chunkytfg

We've got a small 40m2 parking space type area to the side of our house that we're trying to buy from the local council and we have some questions.

After finally finding out the right person the speak to about it we've been through the process of paying for a RICS surveyor to come value it and been told how much the council wants for it based on that survey.  

We have an issue with the survey. The surveyor seems to have based his valuation as a percentage of the projected value of the house once our extension is completed. They think an increase of 2-4% and the council have offered us the land at 3%

The report says - 'Based upon the %age increase in property values for semi detached property values in ** ******(data published by HM land registry), and once the alterations are complete we would expect the property to be worth in excess in £500,000'

Our house is in the middle of a pretty significant change which will turn it from a 3 bed 1 bath 1200ft2 house into a 3 bed 2 bath with a granny annex at 1500ft2.

We've completed the build of the extension but it is just a bare shell which will be the annex and new kitchen. Along with that it needs 3 new bathrooms of which 2 will be built from scratch plus electrics plumbing etc etc. We're thinking 30-40k for the remaining work to be completed.

To me that means that it isn't worth 500k at the moment and based on the idea that we're likely to not have it finished for a few years would this be a good point to argue to try and reduce the asking price?  

In my head getting a surveyor in to value a property means they should come in, details the house and its current state and value based on what they see and not what will be there eventually?

Also just in general if you do have experience of this how flexible have you found councils to be on price or is it a car of they were told its worth X amount so thats all they will accept?

 

dimbo61

It's not what's " In your head " that matters.
They have looked at your plans now you either pay the price or don't buy the land.
Council have you over a barrel.
This week it's worth £385K and next week it could be worth £400K if you finish one of the bathrooms or bedrooms.
Surveyor has done a valuation based on what it's going to be worth when finished

daveyjp

Surveyor has done the correct valuation.  The extra land will increase the value of the property.  The land is therefore worth a percentage of this uplift.

Councils will negotiate, but they do need to demonstrate the best consideration has been achieved and the valuation is their evidence.