Your home is your castle, however, what if there was a way to unlock value without uprooting your life?
For those blessed with a spacious garden, however, not quite ready to move house, selling off a portion of your land might be a viable option.
In this article, we’ll explore the steps involved in selling your garden, from consulting with agents to navigating legal considerations.
The first step: Consult with an agent
Before you start measuring plots and imagining new neighbours, the first crucial step is to consult with a reputable estate agent.
Agents with experience in land sales can assess the potential development opportunities your garden may offer, making it more attractive to potential buyers.
Factors considered by agents
A knowledgeable agent will consider various factors when evaluating your land for sale. These include assessing access to the land, checking for any Tree Preservation Orders (TPO), and understanding local zoning regulations.
These details can significantly impact the feasibility and attractiveness of the land for potential buyers.
Agents will also explore avenues such as listing the land on specialised portals for land sales and participating in land auctions to maximize exposure and reach the right audience.
Putting Together a Scheme
Once an agent determines that your land has development potential, they will work with potential buyers to put together a scheme.
This involves examining the size of a house that can be built, considering square footage, and exploring hypothetical structures.
Negotiations are an integral part of this process, as the size of the land being sold and the nature of the proposed development can vary.
Understanding restrictive covenants
One aspect often overlooked by sellers is the presence of restrictive covenants on the property.
Checking the title deeds is crucial to establish if any covenants exist, as these may dictate that certain portions of the garden must remain untouched.
It’s important to note that planning law and land law are different; obtaining permission from a local planning authority doesn’t necessarily override legal covenants.
In some cases, it may be possible to obtain a release from a restrictive covenant, allowing for more flexibility in land use. However, it’s something you would need to get professional advice on first, from a reputable legal body.
Tax implications of selling land
Before you embark on selling off a portion of your land, it’s essential to consider the potential tax implications.
If the land is part of a second home or has a separate title deed, it may be subject to capital gains tax.
Seeking advice from a tax professional is advisable to ensure compliance with relevant tax regulations.
Lender’s consent and mortgage considerations
If your property has an outstanding mortgage, you’ll need to secure your lender’s consent before selling off any portion of it.
This is because the portion of the lender’s security is at risk, and their approval is necessary to proceed with the sale.
Conclusion
Selling a portion of your garden can be a strategic way to unlock value without the upheaval of moving house.
By consulting with experienced agents, understanding legal considerations, and navigating potential tax implications, you can make informed decisions about selling your land.
With careful planning and professional guidance, you might find that your garden holds not just natural beauty but also a hidden opportunity for financial gain.
This article is purely intended as a helpful guide and not professional advice. Potential buyers should consult an independent professional prior to purchasing any land, property, or investment vehicle.