Developer interested in buying my property

beckysbobbles12

Hi all

It's very early days but I just wanted to hear people's thoughts on what they'd do in my situation.

I live in a semi detached house and the other side of my neighbour is a car park which the local council are looking to sell.

A developer has written to both myself and neighbour asking to meet as they are interested in acquiring our properties.

I haven't met with them yet as I've had a lot going on, however my neighbour has and they are quite keen to sell. They've had various issues and I think so long as the price is right, they will look to sell.

I thought the developer would need to buy both our properties to do their development but it turns out that even if only my neighbour sells, they could knock their house down and turn mine into a detached house.

I was never considering moving as I love the area and my neighbours but it sounds like they are very much keen to move.

I know nothing about figures but honestly can't see how they could offer a substantial amount more than asking price and still make their development profitable.

It leaves me in such a dilemma. I could stay but be stuck with a building site next door for who knows how long. I also worry that I'd need some sort of legal advice and this is going to cost me. Plus I know they do it all the time but what if something goes wrong and my house is damaged? Not to mention the noise and dust.

Then they'll be this new development which I have no idea if it will impact my property. They've mentioned residential care home so that could include noise pollution and parking issues.

Have you any advice/opinions please? 

user1977

I would be seeking advice from a surveyor who is used to this sort of valuation (and perhaps employing them to do the negotiating).

You can ask the developer to pay your surveyor and solicitor's fees.

beckysbobbles12

user1977 said:

I would be seeking advice from a surveyor who is used to this sort of valuation (and perhaps employing them to do the negotiating).

You can ask the developer to pay your surveyor and solicitor's fees.

Do you think a Surveyor would work on that basis though or will I need to pay them first and ask the developer to reimburse?

I just think the market value will differ from the surveyor, don't they just estimate mainly the land value. Sorry I'm not very knowledgeable about this.

Section62

beckysbobbles12 said:

I know nothing about figures but honestly can't see how they could offer a substantial amount more than asking price and still make their development profitable.

It depends exactly what they have planned for the land.

You'll probably get replies saying you have the developer 'over a barrel' and can name your price, but as you've already found out, the developer could buy the neighbouring property and demolish it whilst leaving yours intact (save for converting it into a detached property).

Whether the developers would benefit from buying your property depends on a) whether the additional land would be useful and b) the cost of buying your property vs the cost of doing the work required to protect your property when the neighbouring half is removed.

In terms of profitability, developers are often able to turn a profit by demolishing an existing dwelling and replacing it with something more modern/desirable.  It all depends on the exact circumstances of each individual case.

They are unlikely to want to talk to you about selling unless they have already identified a route to profiting from the transaction.

daveyjp

Depends on the size of the plot with the houses and car park.  A few years ago a friend passed away and his 1970s bungalow was sold for £350k.  It was on a corner plot.  A developer bought it and built 5 houses, the cheapest was £600k.

A surveyor would take development potential into account and work out marriage value.

beckysbobbles12

Section62 said:

beckysbobbles12 said:

I know nothing about figures but honestly can't see how they could offer a substantial amount more than asking price and still make their development profitable.

It depends exactly what they have planned for the land.

You'll probably get replies saying you have the developer 'over a barrel' and can name your price, but as you've already found out, the developer could buy the neighbouring property and demolish it whilst leaving yours intact (save for converting it into a detached property).

Whether the developers would benefit from buying your property depends on a) whether the additional land would be useful and b) the cost of buying your property vs the cost of doing the work required to protect your property when the neighbouring half is removed.

In terms of profitability, developers are often able to turn a profit by demolishing an existing dwelling and replacing it with something more modern/desirable.  It all depends on the exact circumstances of each individual case.

They are unlikely to want to talk to you about selling unless they have already identified a route to profiting from the transaction.

Thank you. The plan is for a residential home/units I believe. I imagine our properties would be used for parking but who knows.

Someone said I need to be careful about compulsory purchase order, surely that's not the case for me?

I have access to free legal advice at work so I'm going to call them today.

user1977

beckysbobbles12 said:

user1977 said:

I would be seeking advice from a surveyor who is used to this sort of valuation (and perhaps employing them to do the negotiating).

You can ask the developer to pay your surveyor and solicitor's fees.

Do you think a Surveyor would work on that basis though or will I need to pay them first and ask the developer to reimburse?

It's very common for their fees to be met by the other party, in various scenarios. But you'll want to get the principle of that agreed by the developer (and a suitable fees undertaking) before you get too far into things.

stuart45

It's a shame your neighbour has already met them and shown a willingness to sell. They could well want both the properties, but are putting more pressure on you with the threat of demolishing next door. 

Mutton_Geoff

The important thing in this situation is don't be greedy. If the price is right and a move works for you, go for it. Have you seen any plans yet? How much of a ransom is your plot?

beckysbobbles12

Mutton_Geoff said:

The important thing in this situation is don't be greedy. If the price is right and a move works for you, go for it. Have you seen any plans yet? How much of a ransom is your plot?

I haven't met with the developers yet but my neighbour has. They said they will be sharing the plans with them shortly.

Keep_pedalling

I would get some valuations from EAs and compare what they think it would obtain on the open market with what the developers are offering.