AIBU to turn down developer’s offer of £££ and keep our garden?

[Emelene]

Hi MN. I would appreciate some opinions. We have very recently moved to a village, with an outstanding school, village green out the front and a garden in excess of 100 ft out the back. Our kids are almost 3 and 1 and we see ourselves living here for at least a decade.

The thing is the last owner was intending to sell 60% of the garden to developers, along with the next 3 neighbours along (we are the end plot on the plans). She lost patience and sold the lot to us. Planning permission has finally been granted after previous appeals were turned down.

Under the plans, there would be a house and a half built on our land, so we would be overlooked and lose 60 percent of the garden. We don’t have to sell, but the developers have offered a final offer of £100k. That would pay off about a third of our mortgage. They are pressuring us to make a decision ASAP.

Obviously it’s a huge amount of money and a privileged position to be in … it’s very hard to say no. But. Losing the garden is a high price. We’d planned chickens, Wendy house etc. The house currently feels so peaceful, trees out the back (that would be cut down) and birdsong. So I think it would change the whole feel of our home. But there will be a house built in the neighbour’s garden, so there will be a small element of overlooking…

I’m scared we will regret turning down the money. But our kids are so young and we moved here to give them a wonderful childhood (with a garden!)

So AIBU to turn the developers down and keep the garden? WWYD?

If a developer can fit a detached house in your garden and has already obtained planning permission for it, then why don't you turn it down, but look on it as an emergency nest egg, should the need ever arise for additional funds or when you're planning on moving on?

I would enjoy the garden while your kids are young. My grandparents had a really big garden and it was amazing for me and my siblings to play in when we were young. When they decided to sell up/downsize, they sold half of the garden and a developer built two houses on the land.

If you sold now, I think you'd regret it more than if you don't accept!

I would say no. An ex did this with the same size garden and they were horribly overlooked. It ruined their garden and devalued their house. The big appeal of that house was the big garden.

I agree with most of the other posts. Don’t do it.

However, if you do decide to do it, drive a very very hard bargain with the developers. We sold my late MIL’s bungalow on a reasonable size plot for £380k. We thought we’d got away with a great price as the property needed a lot of updating etc.

The developer applied for planning permission, demolished it and built two detached houses which sold for £850k EACH! We clearly undersold without understanding the market.
£100k is a drop in the ocean to a serious developer.

No-one will make £100k
Fees, solicitor, valuer, capital gains, the amount required by the mortgage company to adjust the value and/or loan to value (is your money eventually but only realised when you sell). Depending on the mortgage type and company- redemption fees and remortgaging costs

You don't have to pay CGT & there is no strict rule that the OPs property will automatically be devalued

Sounds like not everyone was happy for this to happen if previous appeals were turned down.

Garden grabbing developers want to make maximum profit for minimal outlay. They won't pay you the true value and you will live with the disruption, noise, mess and then houses in close proximity. No doubt they'll try to get permission to squeeze a couple more in. If it pisses off your other neighbours,so be it. You didn't agree to anything.

I wouldn’t sell it. Unless finances were at a point where it could make a huge difference. We moved before Christmas and I think neighbours nearby have taken an offer for similar. Luckily it doesn’t impact our privacy. We had a hypothetical conversation about what we would do. We are comfortable as we are so we wouldn’t give up the garden.

Plus if you lose some of your garden and become massively overlooked could it affect resale value anyway. Although not enough impact compared to the gain!

Whatever you decide is right for your family is right at this moment in time so try not to use hindsight later down there line !

@Noeuf

www.thefriendlyaccountants.co.uk/tax-implications-of-selling-your-garden/ Helpful but here.

Also, if your mortgage is 300k you are likely to have a maximum overpayment per year (ours is 10%) without charges kicking in. So you’d have to work out what you would do with the money?

That is a website just about the tax (an it is very vague) No mention of mortgage company or the implications.

How big is your current loan to value?

No I wouldn't do it. 100k doesn't reflect the loss of the actual garden plus the impact on your property's value, plus the inconvenience of extended building work, loss of privacy etc. The developers are having a laugh at that money.

That garden is what could allow you to stay on the house a long time; now it's a play area for your DC, but it also gives scope for additional storage, a workspace/cabin or possible extension of your home in years to come.

Your house is a terrace and presumably older with a more traditional layout than the new builds on offer. The trade off, for many buyers, is the garden. If you sell the land you're going to have the downsides of a house that is older without the added benefit of the more generous plot size.

Don’t do it - we’re in a terrace and while 100ft garden sounds like lots, terraces are often narrow so for kids games, the length makes a big difference.

@buttermutt

No-one will make £100k Fees, solicitor, valuer, capital gains, the amount required by the mortgage company to adjust the value and/or loan to value (is your money eventually but only realised when you sell). Depending on the mortgage type and company- redemption fees and remortgaging costs

You don't have to pay CGT & there is no strict rule that the OPs property will automatically be devalued

Why do you think you don't pay capital gains?

I’m scared we will regret turning down the money.

It's £100k in your hand now, & a huge chunk off the mortgage.

But ... balance that against the financial hit you will take hen your house & garden value is depreciated by the development.
& then factor in the at-least-10 years of family lifestyle & enjoyment you bought the property for.

Don't do it OP. By the time you've paid agents fees, solicitors fees, stamp duty, moving costs and lost value from your home if it finally sells, you'll be left with pretty much nothing out of £100k.
Pop some fast growing trees down your boundary so you're not overlooked from next door and enjoy your lovely home with your children.

I'd turn it down.
But potentially, could you sell a smaller part of the garden for one smaller house? You wouldn't get as much for it, but it might be worth considering.

I'd turn it down without a second thought

My DSis is in exactly the same position and has always turned it down. It wouldn't be the house you wanted if it didn't have the garden and was overlooked. She will probably sell it if she ever wants to move.

@Vancouverorbust why do you think you have to pay it? Like many taxes there are loopholes.

Best and final offer - I wouldn't believe that for a moment. Get advice from a planning consultant before accepting that offer I think you could push it higher. Can they build the others without your land or do they need your bit. Mot you could sell them your whole plot (inc house) and move away with a big wad...

Don't do it. I grew up with a garden like you describe and my parents still live there. It forms some of my fondest childhood memories and is still a focal point now for the grandkids. A bigger garden is the one thing I would change about my home.

No no no

Can you afford your mortgage without selling the land?

If yes keep it.

Its not as if you are a middle plot and not selling would scupper all the plans.

The new houses could still go ahead albeit slightly differently.

The land looks to be a valuable asset. Keep it for a rainy day - if needed.

The neighbours may huff and puff - but it’ll soon blow over.

No way. Don't do it.

‘Noeuf
www.thefriendlyaccountants.co.uk/tax-implications-of-selling-your-garden/ Helpful but here.

Also, if your mortgage is 300k you are likely to have a maximum overpayment per year (ours is 10%) without charges kicking in. So you’d have to work out what you would do with the money?
That is a website just about the tax (an it is very vague)
No mention of mortgage company or the implications.’

Yes, that’s why I started a new paragraph and put ‘Also’ …

absolutely not, I wouldn't even consider it. Money is nothing compared to a lovely garden to enjoy whilst the children are so young. It will end up being some massive modern monstrosity that sees right into your garden. I am certain you will regret this.

But actually, you aren't getting £100K because your house is being devalued. So putting aside all the things you love and stand to loose, you will also loose a fair chunk of tha £100K in market value. A house with a smaller garden that is overlooked is going to be worth less than the house you have now.

Not worth it.

Ask for the full value of your house. It sounds like they are desperate for the land. Then sell up - even at a loss - and move somewhere else. It sounds like your neighbours are already in so you won’t be upsetting them.