Sell end of garden or extend mortgage to fund extension?

[Neverunderfed]

As above really. We have a small 3 bed semi on a massive plot in a rural location. Our garden is very long and backs on to fields. For the last year we, in association with the neighbours, have been applying for planning permission to chop off the ends of both of our gardens and sell as a plot for a large property. Dh did all the design and it has been a big job...and last week permission was approved.

But now we have slightly tepid feet. On being valued, we would net about £45-50k. Which obviously isn't to be sneezed at. The plot is worth 3 times that but next door have the point of access and are very determined on the money they want for it.

If we got £45k we would need to borrow a similar amount to extend...we would be doing a two storey to the side and single storey across the back to make a study, big kitchen diner, an extra bedroom and family bathroom. It is our 'forever' home 🤮 and we want it to be suitable for the three kids as they inevitably grow.

But we are now worried that we will regret losing the end of the garden and having a house there instead, when the money we would net won't be enough to do the whole job. Our loan to value is very good as is, less than 50%, we could borrow enough to do the whole extension pushing the mortgage up to around 70% LTV.

But I'm nervous about having a bigger mortgage too! With all the Brexit uncertainty etc etc.

What would you do?

How big would your garden be if you lost some?

Would you lose nice views of fields......if so I'd really regret that.

And are you saying your neighbour is getting more money because they have the point of access? Surely that's irrelevant, they may have the access but would their plot on its own be big enough? If not then they need you as much as you need them!

Seems like you’re getting the short end of the stick money wise. Could you buy their bit of land, sell your house to fund the build then still have your forever home designed just as you like it and keep the field views?

Hard to say...my sense of proportion is rubbish 😂

At the moment it is approx 45m long x15m. We would lose about 13m off the end, and then the extension would be about 3.5m so we would have about 25m left I guess?

I'll try and do a diagram to explain the gardens/access thing...

We are worried that we would regret losing the end in the long term. At the moment it is under used bar some chickens, a shed, greenhouse etc. If we kept it we would put a seating area to enjoy the views, growing area, workshop etc maybe.

Bad diagram. It is a corner plot you see. They have a gate onto the lane which runs down and round in front of us.

Area wise we have 52% and them 48% basically. But the land is provisionally valued at £150k say, and they have said they want at least £100k to clear mortgage and do some work on house. We have negotiated a tad as DH has done all the work, but they are fairly adamant. Obviously the access does have a premium attached to it. They could maybe get a small property on just their half, but it wouldn't have a garden and they'd need to start again in terms of planning.

Maintaining good relations is important too I guess

Tell them you want 50/50 or don't do it...
Greedy sods.

Meant to say the red dotted lines are where we could cut across to join up one plot, accessed by the gate area on the right

Your neighbours are being far too greedy. Could the person who provided a value also say how the money should be split?

I think if you don't get half the money I'd keep your huge garden. Will your view be spoilt? If so I just wouldn't do it.

Well I wouldn't take 50k while neighbours get 100k. It's irrelevant that they feel they need 100k. Are they saying they won't do it unless they get 100k? I'd call their bluff. After all you need 90k to do the extension....why should you have to get a 45k mortgage but they don't?

Neighbours are being too gready, neighbour relations are important but is it really worth 25k? You have more land but they want 2/3 of the money? They are not looking at it fairly if they are just looking at how much they need to cover what they want to do, not how much it's worth, you could say the same you need a certain. I would be saying no unless it's a more fair split.

Worth 50k not 25k

No they have more land, 52% or thereabouts to our 48%.

I'll suggest we ask the estate agent for some pointers. I'm very tempted to say I'd rather keep the garden...yes we would still have space for the kids to kick a ball around etc but would back on to a house instead of a field essentially.

How detailed are the plans for the new house?
I would assume because of the access, the house would sit to the fight side of the plot (ie in neighbour's bit) and new garden would be on left (ie behind your garden).
If that's the case, the new house would have less impact on your view than neighbours.
But that said, I think 100k to neighbours and 50k to you sounds unfair.

I fear you will devalue your house and spoil your views and be overlooked. Not worth 45k ( unless your house is relatively low value). If your house is worth £300k or more this would be retrograde step.

Right of the plot, not fight of the plot!

My garden is 21 metres long.

There used to be a field behind. A developer put in several houses before my ownership.

The houses are 25m away with a small 4m long garden.

Even though 25m window to window is more than most new builds, it still feels overlooked. Also neighbours moan about trees well into my garden. I’d never be able to plant anything new near the end of my garden even if it’s perfectly legal to do so. I got a barrage of strong worded letters when I moved in about some protected trees they wanted cut...tough titties for them...

People describe my garden as small at 21x14. But that’s just because the other houses are so close. If they had 21m gardens. This in turn would make my garden look much bigger and most people would say it’s a good size garden.

Hopefully you’ve drawn up plans so the new house isn’t overlooking you as this will make all the difference. Also just because the windows aren’t facing you now. Doesn’t mean in the future they may alter or extend it. Window to window and boundary distances get smaller every few decades.....

Most councils it currently stands at 22/21m window to window if straight on or 15/16m if it’s at an angle. I’m sure this will come down as more houses are required.

Personally as it’s forever house I wouldn’t... but now you’ve got so far with your neighbours you risk upsetting them. I’m all for the easy life so I’d never do it in the 1st place.

Don’t do it. And if you do it has to be 50/50

What would be the value of your house if

A) you sold part of your garden, a house hot built and you extended your current home

Versus

B) you extended your mortgage to fund the extension but kept the larger garden and field view?

I would like to keep the view and space at the end of the garden. I like the idea of you buying neighbours' plot, building your dream home on the "new" megaplot and funding it by selling your house.

BUT

If the value of your neighbours plot is not 2/3 of the whole value of the megaplot. It's 52% plus a but since they have the access.

They can’t build a proper house without you so should be nearer to 50/50 but having given the the impression 1/3 is okay it will be hard to tell them now 50/50. Maybe better tell them that it’s not worth it for £50K and at this time won’t be proceeding. See what they say.

Just an idea, could you in theory buy your neighbours plot from them and build your dream house in the new plot and sell your existing home? Then you would have the home you wanted and views?

The new property won't be as nice as our current one extended, we have lovely sweeping views off over countryside and forest in front of us, and to the side as well if we put windows along that way. Whereas the new house would only have fields on one side, and a little at the back.

I wouldn’t do it on the figures you have quoted. Your open aspect has a value which you are not factoring in.

It seems that you will lose a lot of garden then, not only the bit you are selling, but also the bit you will build the extension on. I wouldn't. I like gardening too much.

The neighbours are being a bit cheeky too - would their bit of land on its own be big enough to build a house on?

I assume their plot isn't really worth anything without yours added to it to make it big enough? If that's correct both plots have equal value.
Are their other neighbours to consider? How do they feel about anotger house at the bottom of their gardens/over looking their gardens? Do you loose your view? Do you loose your privacy? Fo you set a precident for others to do the same or for a developer to buy the field at the end and put 100 other houses there?
It certainly isn't worth it for £45K.
Personally I'm not a fan of garden developing and I wouldn't do it. Especially if this is your forever family home. I'd also pull out because your neighbours are greedy CFs so I wouldn't want to enable them to do this.