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Housing development next door

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  • Housing development next door

    Hi all,
    Im looking for advice and info regarding a development next to me and the possibility of my house being bought out.

    I live in a cul-de-sac road in a semi-detatched house, me and my neighbour are the only houses in the road and next to us we have a some wasteland. We have both just recieved a letter to say that the land may be developed for fourteen or so houses and that the developer would like to discuss the purchase of both our property's for more housing.
    We are not completely against this proposal as we think the development will go ahead despite any objections (if any). We have lived here for many years and love the area which is nice and peaceful at the moment, this will all change once development starts.

    So i would just like some advise about this buy out proposal, our land is approximately 1 3rd of the size of the wasteland but also there is some wasteland on the otherside of us which they could use aswell , so we are kind of sat in the middle. I dont for sure if they would use the other bit of land but our land would probably accomodate around 4-5 houses?

    Would the price for our land be determined by the current market value plus a certain percentage?

    Im sure there are lots of things to consider about this proposal but as this is all new to me i would really appreciate your thoughts so i can understand the process and make sure i do the right thing.

    Thanks , Adam

  • #2
    Re: Housing development next door

    All you will really get is the current market value of your house, The developer may if he is generous pay all the fees involved and he might give you a slightly over the market value offer, But i doubt it, What willl probably happen is he may offer you an exchange for one of the new houses he is building. So you will need to consider, how much you owe on your morgate what will you be left with and will you have enough to buy again.


    • #3
      Re: Housing development next door

      If you only get the current market value of your house why move?

      It will cost you around £20,000 all things considered to move home.

      You should get a premium on top of the value as you will have all that hassle. Wait for your neighbour to do a deal then hold out for more!

      I would aim for 50% more than your current market value, and all your expenses to be paid by the developer.
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      • #4
        Re: Housing development next door

        My thoughts are if i have meeting with the developer to let him do the talking and to come across with a neutral feeling about it all and to wait and see what their offer is, then this would be a starting point for negotiations.

        I seem to get the feeling that around 25% -30% above the market value seems an acceptable offer for this situation? But when you take into account what the developer will get by purchasing the land its seems like it should more like you say around 50%? thats were im unsure about the figures.

        What i dont want to do is discuss figures like if im asked - how much i paid for my house, how long ive lived here, how much is my mortgage?
        I dont think that i should have to give any of this information so i hope i dont get asked.
        The only figures to take into account will be the market value i think?
        Appreciate these responses and any more input is more than welcome !


        • #5
          Re: Housing development next door

          Thanks much appreciated


          • #6
            Re: Housing development next door

            Get at least three estate agents around now to value your property as is. Ensure that the valuations do not take into account the proposed new development so you have an idea of what your property is actually worth if you have not already done so.

            Fifty percent above market value is extremely unlikely. And if they do offer you a new build remember that these are often overpriced. For clarification look at the list prices on new developments and then check the actual priced paid on the land registry!
            Also note that some well run banks such as HSBC will only remortgage down to 75% LTV if a property is less than two years old. Or indeed, only offer a mortgage with at least a 25% deposit on a new build for this very fact.

            I'd be interested to know what they do offer. Percentage wise though.


            • #7
              Re: Housing development next door

              Ok, had a valuation on ours and our neighbours properties which were around £250.000 and £350.00.
              Our combined land is a 3rd of an acre in size and this is a 3rd of the size of the land next to us which has the initial property plans consisting of 14 two and three bed properties inc affordable housing.
              So presuming that the developer will be able to build say another 5 properties on our land, what sort of total value would this give the developer and how much should we be offered to sell wether it be a set amount or a percentage?
              Consdering that the initial plans can go ahead without our land included but with the thought that our land would increase the size and make access,roads etc easier.