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Developers offer on my property
Comments
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What tax regime would the £100k come under?But personally, I would not want to live next to a building site.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
It's reasonable for the op to ask the question whether he could get say £1m for nothing, instead.movilogo said:So OP has an option to get £100k for nothing and not sure whether to accept it or not?
No reliance should be placed on the above! Absolutely none, do you hear?0 -
movilogo said:So OP has an option to get £100k for nothing and not sure whether to accept it or not?It isn't for nothing.It's a commitment to sell your home when the developer wants to buy it, and not being able to sell for 5 years if the developer isn't ready to buy.0
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Section62 said:movilogo said:So OP has an option to get £100k for nothing and not sure whether to accept it or not?It isn't for nothing.It's a commitment to sell your home when the developer wants to buy it, and not being able to sell for 5 years if the developer isn't ready to buy.
So it might be worth asking to add a clause that the OP can sell to the developer at 1 X value at any time they choose, if they need to sell before the 5 years or the developer taking up their option. If the developer wanted to take up the option they would benefit from this, if it turns out they didn't, they only have the hassle of selling a property bought at a fair price.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
I agree with those saying don't be too greedy
The second offer is a decent and serious uplift - OP is not the party taking all the risk to pull this speculative deal together over a 5-10 years minimum time horizon. I've seen plenty of options across my desk - double the value is good in my experience as long as its nailed down what and when the value is based on. Valuations at the time plus a minimum floor is one. Other options involve a bit of risk sharing by the OP where they get less upfront but a % of the overall uplift in value if PP granted.
You probably need your lender's consent if you have a mortgage.
Robust legal advice ideally at developer's obligation is number one, from someone with the right experience and contacts.
OP also has to consider that an Option gives the right but not the obligation to buy. The developer could still pursue other access routes and if they find a better one accept the sunk cost of £100. Meantime you're stuck for 5 years with the possiblity of the development going ahead but no sale for you. OP needs to think through all the possibilities and what they actually want. Some developments make areas more attractive/valuable, others less. We don't know much context here. However if OP knows for sure they don't want to be anywhere near this development, the freedom to sell up has a certain value.2 -
Thank you all for your comments, there's been a lot of points raised that I hadn't even considered.We have decided to accept the offer but with some caveats raised here.We will ask that the current value will be the lowest we would take incase prices drop in the 5 years and that future valuations are based on the aspect we currently enjoy. We would ask for the option to be non transferable and that it is relinquished if the developer goes bust or gains permission on their land by other means. We would ask that the developer pays all our legal costs and that they give us 6 months notice to move. Also as they intend to demolish it I'd want the right to remove any fixtures and fittings.If there is something I've missed I'd appreciate the feedback1
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You could ask for a requirement that they buy you out before starting work.No reliance should be placed on the above! Absolutely none, do you hear?1
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