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Lou G

How To Value Land

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My grandmother lives in a nice area in the North of England. Three years ago a builder bought half of her next door neighbours garden for £100k. The builder has always wanted my grandmothers house and garden. My grandmother has now decided to follow suit and sell the land as her neighbour has done.

(As my grandmother is 93 she doesn't want to move).

Problem is how to caluculate how much the land would be worth and what does she ask? It is the same size of garden as neighbours. Any ideas on this would be much appreciated please.

With the purchase of my grandmothers land the builder would be able to start building houses...

Many thanks

Louise

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My grandmother lives in a nice area in the North of England. Three years ago a builder bought half of her next door neighbours garden for £100k. The builder has always wanted my grandmothers house and garden. My grandmother has now decided to follow suit and sell the land as her neighbour has done.

(As my grandmother is 93 she doesn't want to move).

Problem is how to caluculate how much the land would be worth and what does she ask? It is the same size of garden as neighbours. Any ideas on this would be much appreciated please.

With the purchase of my grandmothers land the builder would be able to start building houses...

Many thanks

Louise

Obvoiusly the builder is your only real bidder. You have a key monopoly which prevents his development plans, so you can charge him whatever you think the devlopment value would be worth to him and let him try to bring you down.

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Obvoiusly the builder is your only real bidder. You have a key monopoly which prevents his development plans, so you can charge him whatever you think the devlopment value would be worth to him and let him try to bring you down.

If your Grannie ain't desperate to sell, then ask them what they want to pay, then shake your head and walk! ("no, I was thinking about double that"... or "triple that", "for that its not worth the grief of a building site to a 92 year old lady" etc. etc.) Also try Buildstore plotsearch. You have to subscribe, which is a bit of a pain, but its the best database I know of for building land. It might give you an indication of the values around where you live, go and have a look at other plots and compare.

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Guest rigsby II

Problem is how to caluculate how much the land would be worth and what does she ask? It is the same size of garden as neighbours. Any ideas on this would be much appreciated please.

With the purchase of my grandmothers land the builder would be able to start building houses...

http://www.eais.net/residential-land-sales...hire-humber.htm

Get out your tape measure, find out the area in sq metres, and use the first column.

I've seen a fair number of single plots with planning recently and its there or thereabouts what they are asking...

:)

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One of the three self build mags offers a limited browse of Plotsearch. None in Yorkshire but 6 plots and prices in Lancashire.

http://www.selfbuildanddesign.com/begfram.htm

http://www.plotbrowser.com/

(then use the Plot Browser demo).

Does your Grandmothers plot have seperate access to a road? If so she may well get a better price putting it on the open market for self builders. Lots of people want to do it but so little land. A single 4 bed well built would be nicer than developer boxes squeezed on.

Edited by 2112

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I think you should get, and pay for, professional advise. I doubt that you're going to get that for free on here. I would ask someone like Eddisons (if you're in West Yorkshire) or ring them and ask them to recommend a similar agent in your area.

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One more thing. And if they put pressure on you with limited time offers that means they are trying to stop you doing the research. Also they think they are buying from a little old lady, so they may think they are in with a breeze. Don't even resist pressure. Simply ignore it, and don't waste time, but still do it in your own time.

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Excellent advice, thank you all so much for your feedback. Will go to it, the builder has been patient, he already has plans in and is just hoping one day my grandmother will sell. He's been waiting for 3 years already!!.

Thanks very much.

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Lou,

building plots round this part of the world, can go at anything upto £1m an acre.

I think they tend to build 10 houses per acre - so land costs are £100k per house. Thats part of the reason houses are soooo expensive.

From this you can possibly get a feel for what you could realistically ask for, depending on the type of property the builder is looking to build.

Hope that helps.

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The figures Rigsby list are correct. Get your tape measure out and do the caculation (if its harrogate I think it works out as £400 per square metre so I'm sure it will add up quickly).

Also don't forget that the site is required for the other piece of land to be worth a penny (i.e. you also own the ransom strip) so you may as well add 50% of the value of that land to your figure as well.

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We had a builder approach us about some land owned by my mother-in-law. The builder (and his agent) obviously thought she was some daft old lady (well they weren't entirely wrong). I did some research on the net and found they were offering about 1/3 of what it was supposedly worth. I wrote to the builder via his agent and told them that I would be dealing with the details this piece of land (this was accompanied by a letter from my mother-in-law empowering me to do so). I also told them that they had grossly undervalued the place (I didn't say by how much) and as we had no requirement to sell we would not consider anything other than an offer we could refuse.

They almost imediately came back with a new offer, this time at about the correct value. However, my Mother-in-law is a greedy bint and always overvalues her assets. So we rejected that too.

They wrote back a few weeks later with a slightly higher offer, I told her to take it, again she thought she could get more, but we managed to pursuade her to accept it.

However, when I wrote back, I included that it should be understood that the agents fees will not be paid by Mrs Goat Snr. They didn't like this and pulled out, agent must have been very expensive.

As far as research goes, the land I was selling had Planning permission for a 3 bed house. It's been a while but I think the land was worth about 1/3 of the price if the property was complete. So say if 3 bed homes were selling for £60,000 in the area, then the land with PP would be worth roughly £20,000. I not sure about selling land without PP.

Also, a good piece of advise I saw on this thread was to get a paid professional in. I must admit that I felt way out of my depth dealing with the builder and his agent and it could be said that I was 'riding by the seat of my pants'. I don't reccomend you do this.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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