Developer wants to buy my house

davi23

Hi, I am looking for some advice on the following matter. Hoping to hear back if some of you have been in similar situation and what you managed to achieve.

I own a residential property and a developer has approached me in order to acquire the property. The developer is looking to build a major development and is looking to spend £50+ million for the build. I have also heard the development once build will earn the developer several million pounds of revenue per annum. This developer has also obtained approved planning permission from the local council for this development.

My queries are as follows:

1)    How much % above the market value of my property can I ask from the developer? It seems the land my property occupies has gained significant value due to this new development.
2)    I had no plans to sell my property before. So what sort of expenses can I get the developer to pay?
3)    I am not looking forward to paying any additional taxes and am looking for the developer to take into account the taxes into the overall offer. Is this unreasonable? If so, what can I ask instead?

Looking forward to your responses, thanks.

Ath_Wat

It depends on how much they need your property.  What is the purpose of it?  Does it provide access to a site that he can't get any other way or do they just want to put a couple of extra houses on it?  If it's the former it might be worth a lot to them, if the latter, it would be worth something less than the profit he would make on those 2 houses (not the sale price).

Expenses and taxes would just be priced into the amount you charge them for the house.  They may wish to pay it separately, but you are looking for a minimum of  (marketvalue of your house) + expenses + taxes + (whatever figure you think makes it worth your while).  You can then add to that (whatever figure you think you can get away with given how important it is to them), which could be well in excess of the lowest figure you'd take and be very happy with.

UnderOffer

Do they need your property and land to access/enable the building of the other properties? Is your property essential to the development or just a nice to have for the developer? 

I think your negotiating will depend on how keen they are to obtain your land. If it’s not essential to the development they may play hardball and offer just a little over market rate. 

Mutton_Geoff

A project this size needs professional valuations, not a question posted on an anonymous internet forum. The large national estate agents have departments and surveyors/valuers than can work out this sort of thing. They won't be "no sale no fee" though.

youth_leader

Do your research very carefully. 

An acquaintance was in the same situation and refused the first few offers hoping for more - the developer then withdrew their offers completely, refused to negotiate with her any further,  and built around her.  She owned the house at the entrance to the land, everyone else had sold to them.  The build was very close to her cottage, it was very disruptive and the last straw was when a roofing/scaffold plank from the next door new build smashed through her daughter's bedroom on a stormy night.  She did manage to sell at a loss shortly after the build was completed.

theoretica

Seems like your property might be worth more to the developer than to anyone else - who wants to buy near a building site?  So, as asked above, you need to consider how much the developer needs your property, but also if you want to live next to a building site, and if your property will drop in value if you don't sell to them.

macman

You can ask them to take into account your moving expenses and the SDLT you would pay on the new property. But there are no rules on this, it's simply a matter of negotiation.

babyblade41

Just be a little careful , if the development is endorsed by the council & has many SH percentage of the build you might not have a lot of choice 

thegreenone

If the developer has PP, I should think your house is in the 'nice to have' category otherwise surely they would have approached you before applying and being granted PP?  Where does your house fit in the plans?

ProDave

I think the one thing you can be certain of, is their initial offer will be a lot lower than what they expect to pay for it, in the hope you will just sell it.

billy2shots

davi23 said:

The developer is looking to build a major development and is looking to spend £50+ million for the build.

 I have also heard the development once build will earn the developer several million pounds of revenue per annum. 

You seem to have insight into the developers finances. 
Maybe ask your source how much the developer would pay for your property. 

Alternatively disregard if the above is pub/post office/over the fence gossip