Specialist property solicitors, representing clients throughout England and Wales
There are many reasons why you may consider the purchase of land from a neighbour. You may want to use the land to extend your house or garden, build a new house or develop several properties. Whilst you may be on good terms with your neighbour, buying garden or other land next to your house from them involves the same practical and legal considerations as purchasing any other property. And that’s why you need good advice you can rely on from specialist property solicitors.
For no strings attached FREE initial phone advice about any aspect of buying land from your neighbour, call our specialist property team now on FREEPHONE 0800 1404544.
What matters do I need to consider when buying land from my neighbour?
Some of the issues you need to consider include the following:
How much will it cost to buy the land?
Whilst buying a piece of garden land from neighbours is similar to purchasing any other property, a key issue from the outset is that the land is unlikely to be advertised for sale. This means that you might not know how much the land is worth or the price your neighbour will accept.
If you are particularly friendly with your neighbour, you may be able to reach an agreement on the sale price between yourselves. Alternatively, you could instruct a local estate agent or valuer to carry out a valuation of the land. This will provide a ballpark figure to work with but may not represent the sum your neighbour will accept. If, for example, the land will enable you to build an extension that significantly increases the value of your house, a savvy neighbour may factor this into any negotiations and demand a higher price.
Is there a mortgage over the land?
If there is a mortgage over the land you wish to buy from your neighbour, the lender will need to consent to the sale and agree to remove their interest in the land. If they don’t, the land could be repossessed by the lender if your neighbour defaults on their mortgage repayments.
When considering whether to relinquish their interest in the land, a lender will take into account factors such as how much the land is worth and the amount outstanding on your neighbour’s mortgage.
Buying land from my neighbour – can I use the land as desired?
If you are buying the land to build on, you need to check whether planning permission will be required and, if so, how likely it is to be granted. Your neighbour may already have planning permission in place; this will simplify the process but often results in them demanding a higher price for the land.
What rights and responsibilities are attached to the land
Your solicitor will be able to let you know what legal rights and responsibilities come with the land. Some will be registered against the legal title while revealed searches and enquiries will reveal others. For example, a local search can reveal public rights of way.
The seller may also have granted rights over the land, such as the right for a utility company to lay pipes or cable across it. The land conveyancing process will reveal these types of issues.
You will, in particular, need to consider whether the land has access rights, sewerage and drainage, and utilities such as water and gas. These are often referred to by the legal term “easements”.
Click here to read more about how our specialist easement solicitors can help you
Where will the new boundary be and who will maintain it?
Once a sale has been agreed, you and your neighbour will need to decide where the new boundary will lie and how it will be identified; by a fence, hedge or the like.
You will also need to agree who will be responsible for the maintenance of the new boundary. It is crucial that there is clarity on this point to avoid property disputes later. The decision will need to be reflected in new plans which are drawn up (usually by a surveyor) and lodged with the Land Registry.
Does the land has clear rights of access?
You need to check that the property has the access that you will need. If there is currently a path across someone else’s land, you will not necessarily be able to drive over this. You also need to be wary of issues such as ransom strips. These are small areas of land owned by a third party and needed for access. Without consent to use the ransom strip, the owner can prevent the development from going ahead – or may offer to sell it to you, but for a hugely inflated price.
Do I need to use a solicitor when buying land from my neighbour?
Strictly, no; there is no obligation for you to take legal advice when buying any property, including a piece of a neighbour’s garden land. Sometimes, if the piece of land is particularly small or trivial, your neighbour may agree to the boundary simply being moved. You may be able to do this by way of an informal boundary agreement.
In the majority of cases, however, the process of buying a piece of garden land from a neighbour is no different from purchasing other types of property. It is still conveyancing – the legal transfer of property from one owner to another. Simply put, it ensures that when you buy a property, you are getting exactly what you’ve paid for. Many people use a solicitor to help them buy garden land from a neighbour in the same way they would when buying a house, for example. That ensures you are getting exactly what you’ve paid for.
Some of the tasks your conveyancing solicitor will undertake on your behalf when you are buying a piece of a neighbour’s garden land include –
· Carrying out Land Registry searches to confirm that your neighbour owns the land. If the land is unregistered, a solicitor will ensure that any ownership documentation your neighbour produces is sufficient to prove their ownership;
· Ascertaining whether the land is freehold or leasehold. If the land is leasehold, a solicitor will advise on the implications this has on your purchase and the best way to proceed;
· Checking whether there are any current restrictions on the use of the land which may affect your intended use;
· Negotiating the contract of sale with your neighbour or their representatives. Even with an agreement to sell the land, your neighbour may wish to impose restrictions on your future use of the land; they may seek to ensure you can only use it as a garden, for example, particularly if it’s land next to their own house. A solicitor will make sure any such restrictions are acceptable to you and seek to remove any which are not;
· Liaising with third-party professionals such as surveyors;
· Preparing and lodging all relevant documentation with the Land Registry.
Click here to read more about the conveyancing process and timeline
How do I find out who owns property or land?
Anyone can legally and anonymously access the Land Registry documents for any property in the UK which will tell you the following:
- The ‘proprietor register’ -this sets out who actually owns the land
- The ‘property register’ – describes the property, and is linked to a map
- The ‘charges register’ – this details of any mortgages or charges over the property
But tracking down the owner of an unregistered plot of land can be a daunting and time-consuming task. Here is some helpful advice:
- Ask neighbours or anyone who has lived nearby for many years.
- Enquire at the local pub, post office or shop.
- Check the details of neighbouring registered properties for clues, as there might be references to deeds or documents relating to the unregistered plot.
- Search local authority records, including planning applications.
- Check the electoral register.
In addition, in addition you might send out an appeal on local Facebook pages or other social media channels asking for information.
FAQ’s
How do you sell part of your garden to a neighbour?
If you want to sell part of your garden to a neighbour, you should ask a property solicitor to deal with the transaction on your behalf to ensure the legal formalities are handled correctly.
Your solicitor will check the title deeds and draft a contract for sale clearly identifying the land to be sold. You must ask a surveyor to prepare a detailed plan to be attached to the contract and transfer.
If you have a mortgage, you need to ask your lender for their consent to the sale. They may impose conditions, for example, repayment of some of your loan.
Your solicitor can advise you on issues such as maintaining boundaries and easements. Easements are rights to cross land that does not belong to you, for example, if you need access or to run water or electricity to your property across the land that you are selling.
The sale must include all rights that you will need for your property and be clear and unambiguous, to avoid future disputes.
You may also want to include some restrictions on how the land is used, such as a limit on the size of any building constructed or how close the building can be to your own property.
A property solicitor will be able to advise you of any Capital Gains Tax implications on the sale.
If you are buying garden land from a neighbour, you will also need a property solicitor. They will check that the transfer includes all the rights that you need and that the land is accurately identified. They will ask the seller’s solicitor for their legal undertaking to redeem the mortgage over the piece of land in question.
Following completion, they will register your ownership of the land with HM Land Registry.
