Selling garden land and valuing sites – The ultimate Guide!

Do you have a large area of the garden that you are considering selling? Are you wondering how much part of your garden is worth? If you have asked yourself either of these questions this article will help you.

 

This article examines the issues you might consider when selling garden land and explains the typical methods of valuing land.  Also, we will discuss the ramifications for homeowners with a mortgage.  Most importantly, we highlight a successful path to selling land.

 

Factors that influence market value

 

• Location

 

• The size of the garden

 

• Access to the garden area you wish to sell

 

• The worth of any structures on the property – a barn, garage, or outbuilding.

 

• The availability of land for sale in your area.

 

• The ability to successfully get planning approval.

Appraising your property

There are two ways to determine the value of garden land:

• Existing Use Value – This is the market value assuming it is only used for its current function. For example – a garden sold to a neighbour and only used as extra garden space.

 

• Alternative Use Value – Land that has Planning Permission. To get a good idea compare your plot to parcels of land with planning permission previously granted and advertised for sale.

 

Check out our blog Getting Planning Permission

 

Complications in assessing garden land value include:

 

• Making adjustments for plot size, scarcity, and location.
• Lack of available information. Often transactions between buyers and sellers occur in private without the land even being advertised for sale.
• Valuations can reflect the budget of the buyers rather than the actual worth.
• Another key point is Areas of Outstanding Natural Beauty (AONB), conservation areas and similarly designated areas which restrict development can impact the value of your land.
• Your time frame. Insisting on quick sales often means reducing the amount you will receive.

 

Check your Title Deeds

• Are there any restrictive covenants on your title deeds that might prevent construction noise from the property?
• Is there anything stating that you cannot split the title deed?
• Do you have Overage Provisions that mean you may have to pay the original seller something if you sell the land separately from the house?
• Another key point, check for mineral, airspace and sporting rights these can adversely affect your potential sale.

Can’t find your deeds use this link to get a copy.

 

Can you sell garden land to a Property Developer?

 

Property developers prefer plots in a town or city or are at least in the settlement boundary.  They also want access to public highways and plots where planning permission can be easily obtained. They are less interested in stand-alone green fields, especially if your land is inaccessible.   Likewise, they are often not interested in small garden plots where a single house may go.  However, The Windley Group might be.  We consider all plots on their individual merit no matter how big or small.  Contact hello@thewindleygroup.co.uk to get their considered opinion.

 

Do you have a mortgage?

To sell land surrounding your house, you must get permission from your lender if you have one.

Your lender will consider several things.

• Your loan to value. If you have a small mortgage in comparison to the value of your home there is little or no risk to the lender.
• Does selling off part of your garden decrease its value? If your garden is still the same size as the houses around you after the split, it may have little effect on the mortgage valuation of your house.
• Your lender will want to revalue your home with the smaller garden IF you have a large loan-to-value mortgage. However, garden land is only worth a fraction of development land so you should be able to cover any repayment from the profit of the sale with ease.

 

Hire the right solicitor

Transfer of part of your property ownership requires a lawyer or conveyancer with some specialist knowledge.  If sold as a garden then it can be done simply and cheaply.  Although this may be true, if sold as a building plot the transaction will most likely need a specialist solicitor as it will be generally carried out through what is called an Option Agreement.  Option Agreements can be costly – anything from £2,000 to £6,000.

 

Your solicitor will complete a land registry document known as a Transfer of Part of Registered Title (TP1) to sell part of your garden. A Transfer of Part allows you to separate part of your land from your title to sell it to someone else.

 

Time Frame and Expertise

Selling garden land takes time. It requires expertise and some patience.  Obviously in theory you can make more money going it alone.  However, it can be easy to make very costly mistakes and ultimately you may make no money or less than you would have made with a professional property developer.

Here are some questions to ask yourself:

• Do you have the time and knowledge to find the right buyers, negotiate, take bids, and use the right people to get the best price?
• Do you know the people who will pay the most for your plot?
• Can you get planning approval before marketing your garden plot? Remember it’s easy to make mistakes that will cost you your planning approval.
• Should you get planning permission first? Can your local estate agent sell the garden for you?
• If you can do this yourself, can you get a deal that leaves this expensive complication to the experts?

 

Summary

All things considered, finding out the value of your land can seem like a complicated business. Here at The Windley Group, we have the expertise and experience to guide you through the whole process. From making an initial assessment to see if your land is suitable for development, doing the due diligence required, to giving you an offer – all hassle-free!  We can take care of the whole transaction. And best of all – without costing you a penny! From valuation, to transferring money into your bank account The Windley Group are considerate professional partners.

 

The Windley Group will respond to all enquiries, no matter their size or location.  Plus, we pay all associated costs!  You don’t need to spend your money or take any planning chances. We take care of it all and bare all the costs.

 

We have a team full of professionals who are experts in all aspects of property development, design, and construction. The Windley Group offer a free assessment of land value regardless of its current condition, planning status, and use.   Before putting together the right team to prepare and submit planning applications. We pride ourselves on our professional service, delivering results.

 

Contact our director Luke Windley, to chat, on his personal number 01392 982537 for a FREE, NO OBLIGATION QUOTE.

Selling Garden Land? – This Is Our Process

 

 

Take a look at our other informative blog posts.