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The tack room

Selling paddocks to neighbours

12 replies

NobodyKnowsTiddlyPom · 10/05/2021 08:39

Morning all,
We are in the process of selling our house that we’ve lived in for 13 years and we have some paddocks and stables too. We want a quick sale so we think it would be easier to sell the house separately.
We have two neighbours and they both want the land!
When we bought the land about 10 years ago, it was 2 acres of mud (having been recently ploughed). We spent a considerable amount of money fencing it, seeding it with equine grass and then later, a herbal ley on top. We also ran water down for an automatic trough and built some stables (2 stables and tack room on a concrete base).
We paid through the nose for this land - way more than it was worth at the time, especially as agricultural land.
So we have buyers but not sure how much to sell it for. Equestrian land prices have apparently rocketed in recent years but I don’t actually know the price per acre. I was wondering how much anyone here would be willing to pay (or have seen for sale) for two acres of excellent horse pasture with water, stables and right next to your house? We are in Shropshire.

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BruceAndNosh · 10/05/2021 08:44

I assume the water runs from the house to the trough.
How will you deal with this once you split the properties?

I think its a good idea, we saw a lovely house when we wanted to move but didn't want to pay the premium for stables and land we didn't need

NobodyKnowsTiddlyPom · 10/05/2021 09:01

@BruceAndNosh That will actually be relatively simple. When we bought the house, it had no running water (neither did the barns next door or the adjoining house). The developer who bought all three derelict properties put the water in across the field from the road, so all of our water pipes meet at a single point on our track. When we laid the water to the field, we just put a spur on our own water pipe. To change this to one of our neighbours we’ll just have to dig down again and swap the spur to one of the other pipes.

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TigerTulip · 10/05/2021 09:12

You need three separate valuations from a rural estate agent, one used to selling houses/farms/land. If you're in the SE Hobbs Parker can be recommended.
You need a valuation for your house and land altogether
Then one for the land
And one for the house

Once you have these, you could allow both neighbours sight of the land valuation, set a date - say two weeks - and say best offer over valuation secures otherwise it goes to market. (Or they could club together to buy it and separate it afterwards at their expense).

If it ends up going to market, it will be marketed as the three different options. Or you could market the whole for a couple of months to see what interest there is at that price level, before splitting them into different lots.

Biddie191 · 10/05/2021 10:04

It's also worth putting a covenant (I think that is the term on it, so that if it's ever developed you get a percentage of the value back then as well. This needs to stay with the land, not just if they sell it, as otherwise it's fairly easy for them to sidestep. This will stop you selling for £x per acre - value as grazing land, then them straight away selling on for 10x as much to be built on (which happens a lot round here).
Value wise, have a look what's available locally, but a lot will depend on the quality of field, access (better is there's separate access, as then you could sell independently, rather than having to sell to either of the neighbours) but definitely worth speaking to the rural estate agents before agreeing anything. Houses with land attached - especially those counted as 'equestrian properties' are at a real premium round here, as they are so few and far between - you may find that separating the land from the house will lose you quite a bit. Even then, it may be worth exploring the covenant. Good luck!

SummertimeEasyBreezy · 10/05/2021 12:06

I would not do this in advance of selling your house. Houses with equestrian facilities attract a premium. I would advertise the property as two lots so it is clear people not interested in the land, can just buy the house. Then if your house buyer does not want the land you advertise the land for best and final offers by a set date. This will get you the best price and your ex neighbours will have the option of bidding.
I know this sounds a bit heartless but why would you give your neighbours something on the cheap without seeing if anyone else would like you offer you more?

NobodyKnowsTiddlyPom · 10/05/2021 14:29

We would put a development covenant on the land (it’s highly unlikely to ever get PP but you never know!). We did market our house last year briefly (we saw a house we really wanted but it got snapped up!) but it’s a really tricky one to value and the valuations, with and without the land fluctuate wildly (£150K between some of the values!). There are three properties down our track - our house and the neighbours’ house, which are semi detached, and then the other neighbours in a barn conversion. We are the middle of the three properties and the land is actually attached the adjoining property’s land. We did sell them the orchard and pond area at the top of it quite a few years ago.
Because it’s a semi (even though it’s really big, large gardens, amazing 360 views etc), all the local estate agents are really flummoxed when it comes to a valuation.
They also don’t really have any idea of how much to value the land separately either!
If I knew what the going rate was per acre of equestrian land then it would help us decide on a marketing value for the house and land.

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SummertimeEasyBreezy · 10/05/2021 14:33

You need a specialist agent, in most rural areas there are one or two who specialise in equestrian/farm sales. The value of equestrian land varies hugely even within each county so no one on here will be able to give you a useful answer.

Biddie191 · 11/05/2021 11:21

As Summertime says, a specialist agent who deals with rural, agricultural and specifically equestrian properties is worth speaking to - and will do a far better job of marketing it than a high street EA. Depending where you are, you'll find different ones, but google rural properties and you should get a few good ones come up. xx

CountryCob · 15/05/2021 23:04

I agree with @SummertimeEasyBreezy, around here houses with land are much more attractive

CountryCob · 15/05/2021 23:05

In fact houses are refusing to sell the land individually

Shadowboy · 22/05/2021 16:58

Bonkers to sell the land separately. Attached to the house, the land will be worth considerably more. Separately equestrian land it’s about £15,000 per acre. Attached triple it, so about £45,000 per acre. No wonder the neighbour wants it!

NobodyKnowsTiddlyPom · 23/05/2021 20:01

We’ve had some agents round and the difference in price they’ve given between the value of the house with and without the land is around £100K, even though the land isn’t actually worth that much on its own. It’s going up for sale as a whole this week so hopefully we’ll get some good offers!

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