Selling a little piece of brownfield to a neighbour

[Raider112]

We have a small piece of land that a neighbour has asked us about selling, it's just about 50 sq. m. where a shed used to stand which is of no particular use to us but the neighbour would add it to his yard. It's just an eyesore really with the remains of the walls still standing but it would give the neighbour extra yard space and better access. Has anyone any idea of a valuation in a situation like this?

 

[farmerm]

Its worth as much as the Neighbour is willing to pay...
do you mean 50sq m (ie a little over 7m by 7m)

I will stick my head up and say it is going to be worth between the Arable value of say £10,000/ha = £1/m2 ie £50 and the residential value which in London might be £30,000,000 per ha ie £600,00.... Probably nearer the former than the latter though. Make sure the buyer is to cover all the costs else any legal fees you incur may be more than the value you are paid!

 

[Yale]

Half the value it adds to the property.

 

[Err0l]

If it's only 7mx7m a little bit of cash might be nice just before Christmas or better still swap it for something you want he has.

 

[pappuller]

Its worth as much as the Neighbour is willing to pay...
do you mean 50sq m (ie a little over 7m by 7m)

I will stick my head up and say it is going to be worth between the Arable value of say £10,000/ha = £1/m2 ie £50 and the residential value which in London might be £30,000,000 per ha ie £600,00.... Probably nearer the former than the latter though. Make sure the buyer is to cover all the costs else any legal fees you incur may be more than the value you are paid!

Think you might have your acres and hectares confused, will be £25k/ ha

 

[farmerm]

Think you might have your acres and hectares confused, will be £25k/ ha

my bad!

 

[Raider112]

Its worth as much as the Neighbour is willing to pay...
do you mean 50sq m (ie a little over 7m by 7m)

I will stick my head up and say it is going to be worth between the Arable value of say £10,000/ha = £1/m2 ie £50 and the residential value which in London might be £30,000,000 per ha ie £600,00.... Probably nearer the former than the latter though. Make sure the buyer is to cover all the costs else any legal fees you incur may be more than the value you are paid!

Yes around 8m x 6.5m, wasn't sure if I needed a 2 or a 3 so did it that way.

 

[Raider112]

Half the value it adds to the property.

That sounds vaguely familiar but probably need professional advice in that case.

 

[essexpete]

Is there any chance that the so-called brownfield site might have future development potential?

 

[Raider112]

Is there any chance that the so-called brownfield site might have future development potential?
Doubt it, even added to his own yard there wouldn't be a lot of room and their boundary is our buildings on 2 sides and next doors house on another. I get what you are saying though, maybe need something in writing.

 

[Still Farming]

Why does he want it really?

 

[Raider112]

Why does he want it really?

Can't say for certain but it would give him better access to his yard and it would improve a bit of an eyesore at the same time.

 

[essex man]

Had something similar several times, generally find people expect to pay around 10% of value added to their property.
Also never expect to pay your costs which can be substantial in proportion to money involved.
If I increase the value of your property by 50 k, why not give me 40k?
You will then be 10k up plus extra space for whatever you need it for, plus future uplift plus 50% development rights

 

[primmiemoo]

Can't say for certain but it would give him better access to his yard and it would improve a bit of an eyesore at the same time.

Best get things in writing. Doesn't need much space for a cabin. Even if your neighbour is absolutely good and true, and does nothing with that 50m sq footprint of a former shed and yard, someone could.

 

[chaffcutter]

No matter how little the actual value, the legals will cost the same, it’s got to be transferred properly and registered with the LR, so make sure that the buyer is willing to pay all your costs as well as his, and if any fencing is involved, that it is at his cost and to be maintained by him or his heirs in perpetuity. Too easy to land yourself with unforeseen future costs if you aren’t very careful.

 

[betweenthelines]

If it's only 7mx7m a little bit of cash might be nice just before Christmas or better still swap it for something you want he has.

Love in The Countryside meets Homes Under the Hammer?

 

[curlietailz]

Stock answer for me is £50/m2 and tight covenants to restrict use and planning etc
He could have my whole farm at that price

 

[nick...]

It will add value to his property.ask for £15k,he pays all fees and add every covenant going.in my experience helping people out with various things allways comes back to bite you in the arse.if you really don’t need to sell it I’d keep it
Nick...

 

[Yale]

It will add value to his property.ask for £15k,he pays all fees and add every covenant going.in my experience helping people out with various things allways comes back to bite you in the arse.if you really don’t need to sell it I’d keep it
Nick...

We were bitten once,sold a small awkward corner of a field,within a year the guy had built a swimming pool on it.

Since then it’s strictly half the value it adds to the property.

If the current person won’t pay it the next one may.

 

[Cottsmore]

We were bitten once,sold a small awkward corner of a field,within a year the guy had built a swimming pool on it.

Since then it’s strictly half the value it adds to the property.

If the current person won’t pay it the next one may.

What's the problem with him building a swimming pool on it?