I think I managed to follow all of that but out of curiosity how does one determine the floor to area ratio? is this set by the council or land planning authorities?
Valuing a piece of land to sell to our neighbour
- Thread starter robjf
- Start date
I think I managed to follow all of that but out of curiosity how does one determine the floor to area ratio? is this set by the council or land planning authorities?
Yep. The local planning guidelines will indicate what and how much can be built on each plot of land. Infact, a "plot" indicates it has these permissions in place as opposed to a piece of land.
So for example your "plot" permit will indicate you can build say 1000 square metres of retail space but that you must stick to a footprint of say 25%. If your land is 4,000 square metres for example, your building footprint can be one entire floor of 1,000 square metres of it can be any combination of floors/footprint size depending on the height and floor restrictions as well.
Next to the airport for example, you often have a maximum building height of 30-50metres or no more than 5-7 floors (for obvious reasons, planes flying over).
City centres will have much higher density, so you could for example have a plot of 3000 square feet but build a 20,000 square foot 10 storey building.
Soldato
Logic would say that you should set a fair price that doesn't ruin your relationship with your neighbour.
I would think £1500 would cover the inconvenience and not seem too ridiculous as long as the neighbour is restoring the fence etc..
I would think £1500 would cover the inconvenience and not seem too ridiculous as long as the neighbour is restoring the fence etc..
Caporegime
Because if my agreeing to sell the land results in the construction of an objectionable extension, I'd want to receive financial compensation for that through the selling price.
Thanks for the responses. Though in hindsight it was a bit of a broad question with a lot of the context missing, I've now got a much better understanding of how to value it!
They're good neighbours and are very friendly but at the same time he stands to dramatically increase he value of his house, and as he's building it himself (retired builder) it's the noise and inconvenience - which has already been going on for a while.
I just don't want to break even after all solicitors fees if we end up with 6 months more noise at all times and have nothing to show for it. I'm inclined to see if we exchange it for some labour for him to work on our house instead as I'm sure he'd be much more understanding of that approach.
They're good neighbours and are very friendly but at the same time he stands to dramatically increase he value of his house, and as he's building it himself (retired builder) it's the noise and inconvenience - which has already been going on for a while.
I just don't want to break even after all solicitors fees if we end up with 6 months more noise at all times and have nothing to show for it. I'm inclined to see if we exchange it for some labour for him to work on our house instead as I'm sure he'd be much more understanding of that approach.
Soldato
Um.... I wouldn't, they could get the land and then not do the work. What would you do then, they've got what they wanted out of the 'deal' so you'd only be left with going via courts to get the 'value'.
NOPE!
Do not do this, even though its only a small portion of land its still legally yours, you need a solicitor to sort the paperwork and legal side, also if you are mortgaged it may have implications on that as well.
Soldato
No. If you want to do that, get him to pay the value of what it would cost to pay him to get the work done.
It also sounds like the fencing will move so the cost of this shold be factored in. I'd be very wary about what he wants to build there and whether it's going to cause you long term problems (i.e. noise, dark garden, etc.)
I'd also say that money would far outweigh labour. He could say, after it's all gone through, that he valued the land at £250 and that equates to 3 hours work or such like.
M.
I'd also say that money would far outweigh labour. He could say, after it's all gone through, that he valued the land at £250 and that equates to 3 hours work or such like.
M.
With such a small parcel of land it's not worth considering the area, in my mind. The price can instead be set at the level at which it's "worth your while" to sell. Bearing in mind solicitors costs as well as the inconvenience and so on, I'd suggest that it needs to be a few thousand at the least. You might as well go in at £5k and see what they say.
Caporegime
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he should have planned the extension without having to over his boundaries tbh.
if he wants the land then he should pay a premium. I'd want £5-10K. If he's going to be adding £50K+ to his house it's nothing in the grand scheme of things and he needs your land to do it.
So that is what I'd be looking at.
If someone wanted to make money on my property I'd charge them at least 10% of what they would be making.
Otherwise he should have done it properly in the first place.
There are no friends in business. Those that have friends in business usually get screwed.
if he wants the land then he should pay a premium. I'd want £5-10K. If he's going to be adding £50K+ to his house it's nothing in the grand scheme of things and he needs your land to do it.
So that is what I'd be looking at.
If someone wanted to make money on my property I'd charge them at least 10% of what they would be making.
Otherwise he should have done it properly in the first place.
There are no friends in business. Those that have friends in business usually get screwed.
Soldato
Very similar to my immediate thoughts after reading first post!
Make it worth your while selling the piece of land, next door will be vastly increasing the value of their home and will be making a lot of noise building the extension.
I find it rather odd that an ex-builder has planned an extension that exceeded their own plot.
£10k, deal or no deal?
Totally agree, the value of the actual land is actually quite high, if he has expensive plans riding on it.
Hi guys just read through everything and there's clearly a lot I hadn't really considered. Conservatively I think he'll probably be adding about £30-£40k to the value of the house by completing the work. Considering that, the noise (my partner is at home two days a week with our little one), and the fact that there will be a visual impact on the back of our property I'm now thinking in the region of £2-£3k, plus all the solicitors fees etc that we will obviously have to pay.
He's a builder, I can't imagine he would have done any different if he was in our shoes.
He's a builder, I can't imagine he would have done any different if he was in our shoes.
Except this isn't a business, it's his neighbour. Attitudes like yours are why this country is in such a sorry state. Nobody is interested in cooperating with others, only looking at what they can exploit from the situation à la benefit claimants, compensation chasers, BTL land lords thinking they're Alan Sugar. Amounts to nothing more than smug and complacent selfishness.
How about practising some British decency and civility for a change.
Why are you even thinking about "breaking even" on anything...
ALL costs PLUS the price for the actual land should be what you are asking for!
Cost to replace boundary
Cost of lost view and enjoyment of the garden
Cost of all fees incurred
Cost of land
Cost of noise, pollution and general inconvenience
Cost of negative impact to you properties price.
+ a bit for yourself but not enough to be a see you next tuesday.
As said above, there are no friends in business and if he gets arsey, he wasn't a friend anyway.
Keep it above board, on the level and be open about why you want however much you want, because knowing builders, he won't be your "mate" when it comes to bagging himself the £40k extra value onto his own property!
Cost of lost view and enjoyment of the garden
Cost of all fees incurred
Cost of land
Cost of noise, pollution and general inconvenience
Cost of negative impact to you properties price.
+ a bit for yourself but not enough to be a see you next tuesday.
As said above, there are no friends in business and if he gets arsey, he wasn't a friend anyway.
Keep it above board, on the level and be open about why you want however much you want, because knowing builders, he won't be your "mate" when it comes to bagging himself the £40k extra value onto his own property!