Selling to a developer

[madyogafan]

I'm a long time lurker but this is my first thread!
As background. Dh and I are 49(me) and 55. We moved 3 years ago into our dream home which was perfect for our specific needs (which are hard to find)The house went to sealed bids and we were only able to get it because we had significant savings and didn't need to sell our house to buy as we had a deposit already. (We sold our old house just after) We then had an extension to get it just as we wanted and are just coming to the end 3 years later!

Now a developer wants to buy our house for the land together with next door and possibly the people next door but one (ie next to our neighbour) . The house will be knocked down. We have been offered approx 500k over the average valuation to go. Now you would think this was a 'no brainer' but obviously there will be a lot of uncertainty as we can't find anything suitable now let alone in a year's time when we'd have to move. We would likely have to go into rented until we find somewhere suitable then do work on it to make it ok for us and there's the risk we may never find anywhere.

Everyone says we'd be mad not to take the cash but at our age I keep thinking life is short and we are happy here. We have the house we want and 0.25 acre land and close to a small but lovely village etc.
I know it's a first world problem but we are having sleepless nights over it and can't decide what to do!
We have modest pensions and savings and think we will be ok in retirement but not wealthy by any means!

So this is really a what would you do? It's uncertain whether if we pull out there will be a build involving next door and next door but one but it's possible if we pull out that nothing will happen. Next door want to move anyway so either they will sell to developer or another buyer.

It's a good point but the chance is the developer could build around the house , might not be a care home could be something else. They could buy the houses and put it into a land bank. You would always be wondering what was happening.
I'd sell 500k plus the equity in the house it's a huge amount of money , personally I would build a house if there was nothing on the market suitable.

In your deliberations remember that a developer will be looking to make around 50% profit on the project, maybe more depending on how many units they can get planning permission for. Factor in a price you would feel happy with and compare it with their possible profit figure and it may well be that £100-200k over what their starting offer is will end up being agreed between you, even though they are claiming final offer right now.

They wouldn't be getting into negotiations if they didn't really want your property. Drive a hard bargain, and if it fails another developer will come along - word gets around.

You also need to think about what will be built next to you if you don't sell but your neighbours do. Will you be living in a building site for years or have larger houses overlooking yours crammed into a smaller plot.
I'd be thinking of the extra money, the hassle of moving but also what will be built next door!

Ok. So our lowest valuation was 725 and highest 950. If sold as a house it would be realistically worth around 800 imo as the house is small for the plot although it's around 3000 square feet.

Mortgage pretty much paid off 30k to go and we have that money just waiting for fixed term to end. We also have getting on for 200k in savings now and joint income before tax around 140k. As I said I know we are lucky!! So you see we don't need the cash at the moment and feel pretty secure.

There are very few houses with lots of land now and that's why we can't find anything. We have a school to one side and behind us so that won't be built on at the moment and even if it was we'd have a big garden as a buffer! We bought this house for that reason as we knew no one could build on our own land!

Any care home will be to the other side. We've taken advice from an architect and there is a 45 degree line from our back window beyond which they can't build if we stay.

We won't get more than 200k profit once we've bought and modified a place and rented for a while etc so the 500k is a red herring really. If the house was worth 950 Then it's far less.

Round here there's an odd jump in price after 950k . Seems like the next step is more like 1.3 million. We would look at surrounding areas but they are actually more expensive.

I think we've decided to say it's not enough money because honestly we don't want to move and in fact it's not enough to buy a nicer house(for us) and have money in the bank.

Although I said we may have to downsize that is really the worst case scenario and we have future proofed this house with downstairs shower room etc. In retirement we will have a similar income to my parents who can afford a nice retirement so we have an idea of how things will be.

It's a good idea to get a land valuation. I will have a Google!

I said I'd sell because of the money earlier , with your update I'd still sell , not because of the money as it's not really an issue but because of the peace and quiet living on a big plot brings. That might be taken away should building work take place. I guess it depends if you can live with it.

I wouldn't move in your position.

It doesn't sound like you want to sell. So just say no, and don't feel guilty about it.

Stay. It doesn't look as if it's to your advantage and why would you want to sacrifice what you already have to a future with perhaps less money and a house that costs more and doesn't suit you now or in the future.

From the sound of things I think it’s tptally fine to have decided not to sell. It sounds like money can’t replace what you would lose.