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garden split/sale

Last post Sun, Sep 27 2009, 3:27 PM by conmankiller. 4 replies.
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  •  Sun, Sep 27 2009, 3:27 PM

    Re: garden split/sale

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    If you have lived at the property as your one and only private residence, then so far it is exempt from CGT when or if you sell it.

    However, when you move to another house and use your tax exemption on your new private residence, the garage and land you have retained from the old property would be liable for CGT calculated on the difference in value when you separate it now........deducted from the price you sell it for, in the future.

    Note - This would only apply if the gain is large enough to exceed your annual CGT exemption, at the time of sale. !
    • Post Points: 5

  •  Sun, Sep 27 2009, 3:03 PM

    Re: garden split/sale

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    Hi, thank's for the replies,I'll go see the solicitors this week.

    I've been down the possible development route and had the application refused but still think there's potential for the site,particularly if the 2 houses are together. it'd be nice to still be holding a piece of the pie if anything happens in the future.

    are there any other implications, tax etc if i hang on to a piece and sell it later?
    • Post Points: 20

  •  Sat, Sep 26 2009, 9:57 PM

    Re: garden split/sale

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    In preparation; photocopy a full existing scaled plan of your property if you have one available, then draw a Red boundary line around the portion containing the garage and grounds that you wish to retain under your new separated ownership.

    Measure this land in metres and mark the measurements on this plan.. also marking out the land itself, then when the sale does officially proceed, hand the plan onto your Solicitors asking them to separate this garage and the area of land onto new title deeds held in your name, completely divided from the old house title documents. This will still probably need a surveyors involvement for accurate valuation and identification reasons, but your preparation work should hopefully smooth and assist the process....somewhat helping to avoid confusion over your intentions..

    Clearly identify your responsibilities and rights of way, so the new owners or guests cannot block your access, impede or encroach onto your private land to park vehicles on whilst they are residing in the new proposed bedsits. You should ideally have the properties separated before the sale proceeds for ease and speed of transfer. However, I would wait until a little nearer the time, just in case the new owner does not get planning permission for their scheme or backs out of the intended purchase altogether.
    • Post Points: 5

  •  Sat, Sep 26 2009, 9:44 PM

    Re: garden split/sale

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    Gus

    I think you need to get a solicitor to look into this in advance. I think the local authority would have to be consulted about this.

    A solicitor can also be a good source of advice in negotiating good sale terms and also in maximising the value of the land that you will still own. You may wish to obtain outline planning permission to build a house where the garage currently is. My understanding is that land is more valuable with planning permission, than it would be without it.

    Huckster

    • Post Points: 5

  •  Sat, Sep 26 2009, 5:41 PM

    garden split/sale

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    I live in a semi detatched house with quite a large rear garden that has a road frontage at the far end and a garage/workshop that i use a fair bit.

    My neighbour, in the house adjoining mine wants to buy my house but i'd like to keep the garage. my question is what would be involved in splitting the land up,is this a simple thing for a solicitor to do at time of sale or should it be done well in advance of negotiating with the neighbour.

    Btw, she wants to turn the house into bedsits, something she has already started on with her own property. just looking for advice or ideas really.

    Thank's in advance.
    • Post Points: 35
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