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?
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. Therefore, once you have an agreed valuation you must ask your mortgage company for consent for the transfer of this piece of land as it will need to be released from their Security.
Depending on the size of the piece of land and its value, the mortgage company may require you to reduce the amount of the mortgage by paying them part of the proceeds from the sale. This will, of course, depend upon the size of your mortgage in proportion to the value of the Retained Land and, in most cases involving small pieces of land, they will not be too concerned about any reduction in the value of the land against which they have their Security.
Please ensure that the land in question does not have vital services passing underneath it otherwise certain rights will need to be reserved over the land transferred in order to retain the right to use those services and access for any future maintenance and repair.
Finally, a new boundary will need to be established and I would strongly advise you to ensure that the adjoining owner is responsible for its construction and its future maintenance and repair.
* Emyr Pierce is Managing Partner of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property. Contact www.emyrpierce.co.uk or email email@example.com