Developer wants to buy my house - WWYD

[Dinoswearunderpants]

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?

Show this thread to your neighbour.
Get solicitor quotes and agree to share costs.
Remember they want your houses as it increases the value of the value of the carpark land. Most likely it will allow more flats to be built so likely increases the profit margins considerably.

Definitely.
Speak to your neighbours too and decide on a figure you are both happy with.

I would sell at the right price. Find where you want to move to and hold that price in mind; get valuations from at least three agents for where you are now.
Factor in legal fees, moving costs, cleaning, decorating.... and see how the offer from the property developer compares to your needs.

@Dinoswearunderpants they won't pay you unless they get planning permission and want to exercise. I assume this is for an option agreement subject to planning.
150% of the average of 3x estate agent valuations plus legal and SDLT would be fair I reckon.

They will pay for your solicitor but you will need to appoint it if this progresses.

You might be waiting for 12-18 months minimum for planning consent and exercise of the option.

If the developer is P$rsimmon, I would ask for an even bigger uplift due to the way they stuff people on leasehold properties, the humongous profits they make, and them being ases in general.

I spoke with someone near us a few years ago who had just found out that their neighbours had been negotiating an offer with developers who were interested in creating an alternative access to land behind them. They were shocked that they hadn't been approached too, and were in the process of finding out how to approach the developers themselves as they weren't interested in being in a semi while one half was knocked down.

Anyway, there were several more rounds before planning permission was finally granted on the land, and in the end they stuck with the single access off a side street that already existed. The pair of semis have been sold off a few months back and are being extensively renovated. The development is in progress at last.

I would have a chat to your local councillor about this - s/he would be interested anyway, and will be able to put you in touch with the right Council officers for advice.

Crikey 😮I'd be biting their hand off. Whilst trying to look like I need a lot of financial persuasion, obviously...
That sounds amazing, I'd be out of here quicker than a rat up a drainpipe (got a couple of those, included in sale price) 😁

Don't go to an estate agent, you need to talk to a land agent - and DON'T sign anything with one developer only; you need a promotion agreement rather than an option with one developer - who is then likely to drive the price for the land down once they have permission, citing difficulties with viability or something. If you are the ransom strip, you (and your neighbour) are the key to getting access, and therefore you are the keys to unlock the value.

(And if you are in the SE and want the name of a good land agent, then send me a PM!)

Am I being a bit stupid, but surely if there was a council carpark there, then there is already access to/from the roads, so what would these houses have in way of a ransom strip?

You are in a good position to negotiate. I’d expect them to pay a significant uplift and all associated fees.
However, don’t become to greedy - there is usually one or more option for access and it may be that demolishing your house is the easiest, but probably not the only option and not at any cost.
Agree that it is a Land Agents advice you need.

I agree with @5thCommandment , you need a land agent. Get together with your neighbour and instruct one. They will do all the negotiations for you. They will also know a solicitor who does these types of commercial transactions.

Don’t waste time with an estate agent, they are not buying your house it’s the land that they want.

Don’t have ANY discussions with the developer yourself and never agree to anything without taking advice from your agents and making sure you understand it all.

Yes you will have to pay their fees but the uplift in the price will more than make up for it.

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

Depending on what they want to build I'd be very surprised if that would be enough for them; most likely they're claiming they don't need to buy yours so you don't expect too much for it

As PPs have said, get proper advice and disabuse them of this notion sharpish

Living next to a residential care home is not for the faint hearted. I did for a while and it was both distressing and noisy - constantly awoken in the night by residents shouting for help, or random incomprehensible shouting which sometimes also carried on during the day. Also general noise of comings and goings, endless parking issues and shift change of staff at 7am every morning (not an issue during the week but it was at weekends!). Obvs depends on whether the care home will specialise in dementia care but I’d sell if it were me!

I haven't read the full thread - but just to say, don't hyper-focus on the small amount you might have to pay a surveyor when it sounds as if you're in an extremely fortunate position. Remember, there are other nice houses out there!

Lucky you - I wish this would happen to me 😊

By far, your strongest hand is if you and your neighbour both agree it's both or none and that you will both hold out for at least their third offer; remember, once they own the land behind you, they need to get adequate access to realise the value of it. Also if they plan to build something big behind you you can object, once they own the land you can't.

We bought a house across the road from a beach for £63k. A few years later a developer knocked on the door and offered us £275k. We shook hands and moved 7 miles inland to a lovely 5 bed detached house!

You're not being stupid. I think if they acquire our houses, it just means a bigger development site for them to work with and make more profit.

@Dinoswearunderpants Is the existing access to the car par single track? do they need road access?

If they buy next door and knock it down, will this give them a road in and out? If so it would hugely de value your house, plus the noise, inconvenience whilst building and after. That might be why they only need one property.

Developers do not always offer as much as you think they might plus will want to tie you in for minimal amount whilst they try and get planning permission (which is not always a given despite their sales pitch). We had one lot which offered 20% over only which we declined as once we factored in costs etc it really wasnt a great deal given we liked it where we were. Another offered a bit more but never got the planning so that was 2 years in limbo for nothing.

@Dinoswearunderpants true but a ransom strip is ime usually something needed for access to the site rather than just curtailing the size of the potential plot.

If they do get the land then there's no point in staying.

It'll never be the same again.

Find somewhere you love and let them pay for it

@SuperBored That's exactly why I asked if the access is single track. They won't get planning if it is, but if Op's neighbour is next to the access or would be wide enough for a road then the problem is solved. They won't buy two house if they only need one.

My mum sold her house to a developer for twice its value back in the early 2000s. It was a group of four houses. One neighbour was very difficult and the other two agreed (with gritted teeth) to accept slightly reduced prices to bump their share up so that the deal would go through. Once the deal was made it was subject to obtaining planning permission which took about a year and a half. For my mum it was very stressful as she had no money and really needed to sell the house, but it was also very worthwhile once planning permission was achieved. It did piss other people on the street off, though, and several people objected/ claimed we had bats in our garden/ etc etc which was partly why pp took so long. So worthwhile but not exactly relaxing!

It migh5 be there is currently access for a car park but if there’s going to be increased traffic the council planning may say the current exit isn’t suitable and refuse planning unless an alternative is found.