Selling Garden to a Neighbour

SuedeAdidas

I'm hoping that some of you guys may have had experience of this?

I live in an upstairs flat in a double fronted Edwardian house. There are just the 2 flats in the property and I share ownership of the freehold with my neighbour downstairs.

The garden is at the rear of the property and is split into 2 distinct areas. My flat owns the largest portion which is furthest from the back of the building.

My neighbour wants to put an extension on the back of the property and has approached me to ask if I am willing to sell the majority of my garden to them to facilitate their extension. I would retain a smaller strip of garden in order that I may still have some off street parking.

I am open to the suggestion - but have no idea how to go about coming up with a price for the sale of the garden. Is it just a case of going to some estate agents for some estimates?

I still have a mortgage on the place so would obviously need to ensure that my provider is happy that the loan to value remains within limits. I would also like to get some idea of potential impact to any future sale price and /or how it may affect any the size of potential buyer pool if looking to sell.

Is there anything else that I should be considering?

Any thoughts, suggestions or considerations would be greatly appreciated.

Thanks

i_b_b_o_r_g

Yeah, I'd get an estimate from an agent for the land with permission granted, add a bag of sand for a beer and propose that to your neighbour.

i_b_b_o_r_g

.....also maybe come to an agreement that you can use the extension roof as a usable outdoor space, as part of the plans, then this may protect the value of your property.

SuedeAdidas

i_b_b_o_r_g said:

.....also maybe come to an agreement that you can use the extension roof as a usable outdoor space, as part of the plans, then this may protect the value of your property.

Thanks......yeah.....I was thinking if maybe a terrace on top of their extension as a possibility. I assume that would also need some kind of consent if overlooking neighbours etc....

Covered End

I can't offer any advice, except proceed with caution.

Possibly, once you sell you have no/little control over what is built and it may not be what you are told/expecting.

I would consider taking legal advice at some stage.

DaveMehmet

Stick a hot tub and patio down, tell him to f**k off and have endless bbq's

bobmunro

This is fraught with danger - you need expert advice. It also wouldn't surprise me if your mortgage lender put the kibosh on the whole deal so would suggest you sound them out before spending any money on solicitors, land valuers etc...

Personally I wouldn't entertain it if I were in your position - it isn't just about loss of value of your property, it's also the saleability of it.

Baldybonce

Covered End said:

I can't offer any advice, except proceed with caution.

Possibly, once you sell you have no/little control over what is built and it may not be what you are told/expecting.

I would consider taking legal advice at some stage.

take the legal advice before you do anything and give the bill to your neighbour.

MrOneLung

Ultimately you are reducing the value of your property.

yes you will have a wedge of cash, but I would hazard that will not compensate for the drop in value if selling in a couple of years time.

i_b_b_o_r_g

SuedeAdidas said:

i_b_b_o_r_g said:

.....also maybe come to an agreement that you can use the extension roof as a usable outdoor space, as part of the plans, then this may protect the value of your property.

Thanks......yeah.....I was thinking if maybe a terrace on top of their extension as a possibility. I assume that would also need some kind of consent if overlooking neighbours etc....

Sell them the land and if your terrace gets a knock back on the plans, object to it being built ; )

i_b_b_o_r_g

My biggest piece of advice though, would be to listen to no one on here and talk to a professional. Good luck Suedo

SuedeAdidas

Thanks all.

I totally appreciate the potential reduction of value and saleability and that's something I will definitely get expert advice on before making any decision.

I'm not sure how many people buy a top floor flat with the expectation of a full garden anyway.....but definitely a consideration.

Curb_It

I feel nervous for you just reading it.
Just say no!

Curb_It

Unless of course it is a whacking great sum of money offered then well maybe..

cafcbrown

SuedeAdidas said:

Thanks all.

I totally appreciate the potential reduction of value and saleability and that's something I will definitely get expert advice on before making any decision.

I'm not sure how many people buy a top floor flat with the expectation of a full garden anyway.....but definitely a consideration.

I've got a similar set up to you on my flat in Bexley, that I now rent out.

When I lived there, the lady downstairs wanted to purchase my garden, which was at the back as opposed to the front, as she wanted a larger garden, and we didn't use ours

Halifax would not give us permission as it would increase the LTV, so the conversation went no further.

Might be worth checking with your lender before you even bother with the legal side

SuedeAdidas

i_b_b_o_r_g said:

My biggest piece of advice though, would be to listen to no one on here and talk to a professional. Good luck Suedo

Thanks mate

SuedeAdidas

cafcbrown said:

SuedeAdidas said:

Thanks all.

I totally appreciate the potential reduction of value and saleability and that's something I will definitely get expert advice on before making any decision.

I'm not sure how many people buy a top floor flat with the expectation of a full garden anyway.....but definitely a consideration.

I've got a similar set up to you on my flat in Bexley, that I rent out.

When I lived there, the lady downstairs wanted to purchase my garden, which was at the back as opposed to the front, as she wanted a larger garden, and we didn't use ours

Halifax would not give us permission as it would lower the LTV, so the conversation went no further.

Might be worth checking with your lender before you even bother with the legal side

Thanks. I know I'll definitely have to speak to my lender re LTV. I've got quite a chunk of equity in the place so would hope that would not be a blocker if I wanted to proceed.

LoOkOuT

Build your own extension at the back, facing their house, so that all they have to do is connect the two up once they buy it and the land off you. You'll make more money that way.

Bromley Graham

It is more than possible that your lender would insist on the proceeds being used to reduce your mortgage.

Lincsaddick

TAKE PROFESSIONAL ADVICE .. end of ((:>)

Bournemouth Addick

I think others are right to be extremely cautious in your approach. I've been through the process of getting shared leases changed to facilitate additional parking and even though we got on fine with the neighbours it's still a bit of an headache and you need to factor in the legal fees/land registry charges, surveyors fees too.

I'm sort of thinking about a similar situation at the moment in that I would like to swap some of our back garden for more convenient parking in the neighbours at the front. I don't think that will affect the LTV for either of us as we both ultimately gain something but I'm treading very carefully because people get very emotive about their properties, I don't want to fall out with them and not really sure how to raise it.

Might get the wife to raise it then I can blame her if they get arsey...

SuedeAdidas

Bournemouth Addick said:

I think others are right to be extremely cautious in your approach. I've been through the process of getting shared leases changed to facilitate additional parking and even though we got on fine with the neighbours it's still a bit of an headache and you need to factor in the legal fees/land registry charges, surveyors fees too.

I'm sort of thinking about a similar situation at the moment in that I would like to swap some of our back garden for more convenient parking in the neighbours at the front. I don't think that will affect the LTV for either of us as we both ultimately gain something but I'm treading very carefully because people get very emotive about their properties, I don't want to fall out with them and not really sure how to raise it.

Might get the wife to raise it then I can blame her if they get arsey...

Haha. I'm also worried about falling out with them over it. We've been neighbours for over 10 years with not so much as a crossed word so far.

Saga Lout

SuedeAdidas said:

Bournemouth Addick said:

I think others are right to be extremely cautious in your approach. I've been through the process of getting shared leases changed to facilitate additional parking and even though we got on fine with the neighbours it's still a bit of an headache and you need to factor in the legal fees/land registry charges, surveyors fees too.

I'm sort of thinking about a similar situation at the moment in that I would like to swap some of our back garden for more convenient parking in the neighbours at the front. I don't think that will affect the LTV for either of us as we both ultimately gain something but I'm treading very carefully because people get very emotive about their properties, I don't want to fall out with them and not really sure how to raise it.

Might get the wife to raise it then I can blame her if they get arsey...

Haha. I'm also worried about falling out with them over it. We've been neighbours for over 10 years with not so much as a crossed word so far.

As has been said, your mortgage provider may well say "no" and if they don't but you go off the idea you can always blame them.

PopIcon

Get him to pay for any evaluations.

Jints

There are two things you need to check. One the value of the land to him - i.e. what it will add to the value of his property. Two, the loss in the value of your own property.

You need a proper valuation done which your neighbour should pay for. The valuation should be done by a suitably qualified chartered surveyor (i.e MRICS or FRICS) NOT an estate agent.

HardyAddick

You need to go to several agents but you need one who is experienced with developments. As your neighbour can't buy the land somewhere else, only from you, you hold the cards. Speak to your lender first though but suggest they put something in writing as I would not accept telephone "advice".

clb74

SuedeAdidas said:

I'm hoping that some of you guys may have had experience of this?

I live in an upstairs flat in a double fronted Edwardian house. There are just the 2 flats in the property and I share ownership of the freehold with my neighbour downstairs.

The garden is at the rear of the property and is split into 2 distinct areas. My flat owns the largest portion which is furthest from the back of the building.

My neighbour wants to put an extension on the back of the property and has approached me to ask if I am willing to sell the majority of my garden to them to facilitate their extension. I would retain a smaller strip of garden in order that I may still have some off street parking.

I am open to the suggestion - but have no idea how to go about coming up with a price for the sale of the garden. Is it just a case of going to some estate agents for some estimates?

I still have a mortgage on the place so would obviously need to ensure that my provider is happy that the loan to value remains within limits. I would also like to get some idea of potential impact to any future sale price and /or how it may affect any the size of potential buyer pool if looking to sell.

Is there anything else that I should be considering?

Any thoughts, suggestions or considerations would be greatly appreciated.

Thanks

Can't you do a double extension suede.

A-R-T-H-U-R

Lincsaddick said:

TAKE PROFESSIONAL ADVICE .. end of ((:>)

Agreed, but for goodness sake, dont shout at them! ;-)

A-R-T-H-U-R

clb74 said:

SuedeAdidas said:

I'm hoping that some of you guys may have had experience of this?

I live in an upstairs flat in a double fronted Edwardian house. There are just the 2 flats in the property and I share ownership of the freehold with my neighbour downstairs.

The garden is at the rear of the property and is split into 2 distinct areas. My flat owns the largest portion which is furthest from the back of the building.

My neighbour wants to put an extension on the back of the property and has approached me to ask if I am willing to sell the majority of my garden to them to facilitate their extension. I would retain a smaller strip of garden in order that I may still have some off street parking.

I am open to the suggestion - but have no idea how to go about coming up with a price for the sale of the garden. Is it just a case of going to some estate agents for some estimates?

I still have a mortgage on the place so would obviously need to ensure that my provider is happy that the loan to value remains within limits. I would also like to get some idea of potential impact to any future sale price and /or how it may affect any the size of potential buyer pool if looking to sell.

Is there anything else that I should be considering?

Any thoughts, suggestions or considerations would be greatly appreciated.

Thanks

Can't you do a double extension suede.

I had an extension once.
Tokyo massage parlour, if I remember correctly.

A-R-T-H-U-R

clb74 said:

SuedeAdidas said:

I'm hoping that some of you guys may have had experience of this?

I live in an upstairs flat in a double fronted Edwardian house. There are just the 2 flats in the property and I share ownership of the freehold with my neighbour downstairs.

The garden is at the rear of the property and is split into 2 distinct areas. My flat owns the largest portion which is furthest from the back of the building.

My neighbour wants to put an extension on the back of the property and has approached me to ask if I am willing to sell the majority of my garden to them to facilitate their extension. I would retain a smaller strip of garden in order that I may still have some off street parking.

I am open to the suggestion - but have no idea how to go about coming up with a price for the sale of the garden. Is it just a case of going to some estate agents for some estimates?

I still have a mortgage on the place so would obviously need to ensure that my provider is happy that the loan to value remains within limits. I would also like to get some idea of potential impact to any future sale price and /or how it may affect any the size of potential buyer pool if looking to sell.

Is there anything else that I should be considering?

Any thoughts, suggestions or considerations would be greatly appreciated.

Thanks

Can't you do a double extension suede.

I had a double extension once.
Came as quite a surprise in a Bangkok knocking shop.

Hartleypete

First thing I would ask is how much he is willing to pay. If the amount is significant then consider getting legal advice.

The cost of advice won't be cheap and your lender is likely to require a new valuation showing a value if the land was sold. It probably won't be cheap or straight forward so before doing anything make sure it's worth it.