Thinking of selling a piece of your garden to a neighbour? It can be a great way to create a clearer boundary or generate some extra cash from land you are otherwise not using. However, before you shake hands on a deal, it is important you fully consider all the issues to avoid future issues.
If you have a mortgage, your lender will need to give consent. They may require a valuation of your retained land and they might insist on a partial repayment.
- If you or your neighbour require any easements, such as for access or services, clear rights need to be defined in the documentation.
- Consideration should be given to any new boundary features, i.e. what form will they take, who is responsible for putting them in place now and who will maintain them in the future.
- You should think about matters such as privacy, sunlight access and potential future developments on both properties. Restrictive covenants might be necessary to control your neighbour’s use of the land sold.
- If future development of the land sold is a possibility but this is not to be reflected in the price of the land now then you should consider imposing Overage terms so that you would receive a further payment at that future date.
- A solicitor can advise on all these aspects. However, there are a couple of other areas where a solicitor cannot advice, namely:
- Plans. You would need a scale drawing of the land complying with the Land Registry’s requirements, likely prepared by a surveyor.
- Value. We encourage you to research similar land sales to ensure a fair price and to take advice from a qualified surveyor. Think about both how much the land is worth to your neighbour and how selling the land might affect your own property value.
Selling garden land to a neighbour can be beneficial but is not something to rush into without proper consideration of all the potential issues. By involving a solicitor early on, you can ensure a smooth transaction. Contact Lochana for a stress-free process when selling parts of your land on 01825 747155.