Many homeowners with large gardens are selling part of their garden to property developers or indeed, building the properties themselves. Capital Gains Tax (CGT) will be the usual tax consideration, but in certain circumstances income tax may be charged.
Can you live in a summer house in your garden?
The big question is, can you live in one? The short answer is no, if you’re talking about a traditional garden shed. A garden building that is to be used as a ‘granny annexe’ or regular sleeping accommodation will require planning permission and must meet current building regulations.
Can you sell part of your garden to a neighbour?
My next door neighbour is extending his house and wants to buy a slice of my garden to allow him access along the side of his property. I am willing to sell, but how should I value it and should I tell my mortgage company?
What should I do if my neighbour wants to buy my land?
Building land can run into the millions depending on where you are. For a small piece of land like that I would be inclined to just offer a small sum (a few hundred) and offer to pay the legal fees. If your neighbour agrees then you can look into the legal costs and see whether it’s worth bothering.
Can a person sell part of their land?
You need to seek the advice of a surveyor to value the land you are proposing to sell, and ensure that by transferring the land you do not lose any critical value element of the land you are keeping – the Retained Land. You will be unable to sell any part of your property which is subject to a mortgage without the consent of your mortgagee.
Do you get more money when you sell your garden?
However, for them to gain more garden will substantially add to the value of their property. Whatever they pay you they will get back when they sell, so don’t give it away too cheaply. You could ask a surveyor, or try to find out what a building plot in your area would cost per metre and price it under that. We are in a similar position.
