CGT on access rights?

[threaded]

Don't forget you want cash up front as well!

None of this 'after the houses have been sold' crap, as they'll go bang right after and you'll be a creditor on nothing.

[rootsnall]

3 new houses will probably be worth around 325-335K (would've been 280-300k when last offer was made) each. So thats 1 million for the deveoper minus 450k (3x150k) to build them, market them, etc leaves 550k for distributing between the developers, the garden owners and us. Guessing the developer takes half (275k) that leaves 275k to be split 60-40 gives us 110k between 3 houses which is 36.6K each.

Ah ! I misread the 6 versus 3 bit, its only 3 newbies.

The old rough style of working out the value of land was finished house selling price = 33% plot + 33% build cost + 33% risk and profit. But the land cost part has shot up with the property boom and I'd say in a lot of cases would be 50%+. Depends how much you want the hastle but I'd say if the figures you are working on are anywhere near correct there is scope to get quite a bit more out of the builder.

How well do you know the neighbours ? How much do you want the extra cash ? You could probably pay a local architect ( have a look for newbuilds recently passed with the local planners ) a grand or two and get planning permision yourself. There are developers queueing up for chances to build 3 desirable houses !

[boredsenseless]

3 new houses will probably be worth around 325-335K (would've been 280-300k when last offer was made) each. So thats 1 million for the deveoper minus 450k (3x150k) to build them, market them, etc leaves 550k for distributing between the developers, the garden owners and us. Guessing the developer takes half (275k) that leaves 275k to be split 60-40 gives us 110k between 3 houses which is 36.6K each.

No it isn't. the houses are absolutely worthless without the access so just turn round and say you want 100K each. They can only say no, but at some point they have to come back and say yes or else give up on the development since you can't sell a house that you can't get to

a) to build in the first place
b) to live in.

Don't let them dictate the payment scales, you are the one with the upper hand not the developer or the garden owners, since those parties actually want to do the deal and I guess other than a bit of easy money you couldn't give a t0ss one way or the other.

Also factor into the cost the extra traffic, loss of light, noise and loss of amenity as the person who buys your house next sure as hell will.

[tim123]

I really am suprised that they can't knock down one of the houses to gain access.

There usually aren't any planning restrictions to knocking a house down and if they expect to get pp to put houses up in the gardens there must be a fair bit of land to play with.

It might not be cost effective to knock down one house and put back three, but there shouldn't be a problem with replacing the demolished house with a house over the access.

Perhaps it's just that the sellers of the gardens don't want that much aggro.

tim

[MickeyP]

I really am suprised that they can't knock down one of the houses to gain access.

There usually aren't any planning restrictions to knocking a house down and if they expect to get pp to put houses up in the gardens there must be a fair bit of land to play with.

It might not be cost effective to knock down one house and put back three, but there shouldn't be a problem with replacing the demolished house with a house over the access.

Perhaps it's just that the sellers of the gardens don't want that much aggro.

tim

The sellers of the 3 gardens were prepared to knock all 3 of their own houses down to build a block of flats in the space so they don't mind a bit of aggro believe me! However, a block of flats isn't in keeping with the area and seeing as the entrance would be opposite a school planning for that idea was dead in the water.

[rootsnall]

The sellers of the 3 gardens were prepared to knock all 3 of their own houses down to build a block of flats in the space so they don't mind a bit of aggro believe me! However, a block of flats isn't in keeping with the area and seeing as the entrance would be opposite a school planning for that idea was dead in the water.

Sounds like you've let lucky ! Haggle hard. It's the developer who is a bit powerless in the equation and should be made to pay the going rate for the plots. Without the garden owners you are going to get nothing ! I'm surprised they are willing to give you 40%. Go a bit easier on them in any negotiations