If you have a large garden attached to your property, you might like to consider selling a portion of it for development, capitalising on your land to release funds.
At Brock Taylor, we are actively looking for such opportunities in the Horsham and West Sussex area, and provide site surveys, valuations, and a proven track record of sales.
Why should you sell a portion of land/garden space?
- Reduce maintenance responsibilities on your land
- Create funds to invest in your property or use as you wish
- Earn profits exempt from Capital Gains Tax
While large gardens can be enjoyable and provide access to private space for you and your family, at a certain point they can become difficult to maintain, costly, and ultimately a burden. By selling a section for redevelopment, you may be able to improve your home, lifestyle, and also make a surprising profit.
Selling an area of garden is becoming an increasingly popular option for homeowners who wish to downsize but don’t actually want to move home. Of course, there are many factors to consider when contemplating the sale of part of your land, such as the effect it will have on the value of your remaining property.
Should you combine with neighbours to sell land?
Known as garden assembly, this is when you and any neighbours in the same position wish to sell your garden space together. This is an effective way to maximise profit, since the larger plot of land has increased redevelopment potential. It’s possible to sell the larger plot to one developer and to liaise with them on plans for the land to ensure you’re all happy with the proposed building work.
Will you be exempt from Capital Gains Tax?
Thanks to Principal Private Residence relief (PPR), when you sell your main home or part of it, you are exempt from Capital Gains Tax. If you are considering selling your garden, you may need to prove that the land is used and enjoyed as part of your main residence while you live there. This is especially important when selling larger plots, since HM Revenue & Customs may actually argue that the land in question was not required for the reasonable enjoyment of the property. In this case PPR relief may be denied.
In order to qualify for PPR relief, the land you are thinking of selling should not be fenced off and ideally, you will be able to provide evidence of the area in question being used as an integral part of your home and garden with photos, for example.
If you apply for development permission prior to the sale of your land, you will not necessarily be exempt from PPR relief, but it may prove more problematic. However, you will not be eligible for PPR relief, if you first bought the property with a partial sale in mind.
Who is likely to purchase your land?
Land is a high value commodity, especially in the UK where the demand for new homes is huge. Portions of large gardens will likely to be sold to housing developers looking to create a new home to sell, or to private individuals wishing to build their own home as a one-off project.
How much control do you have over usage?
When you sell a portion of your land, you are in control and have certain decisions to make with regards to how you’d prefer the land to be used. Our team can advise on all aspects, documentation, and ensure that works only increase the value of your property, rather than reduce it.
For example, you can state the distance from your boundary that building works can take place, the height of fences, and whether future extensions in addition to the original build can occur. While the value of the land will be affected by such permissions, it’s a win win situation when you get that balance right.
Sell your garden for redevelopment with Brock Taylor
If you have a large garden suitable for redevelopment and would like advice on selling, we’re on hand to provide help and guidance every step of the way.
Posted on: 7 May 2018