Paying for vehicle access - what would you pay ?

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    Paying for vehicle access - what would you pay ?

    I have been approached by a neighbour who is looking to get planning for a bungalow in his garden, will probably get it as other neighbours have done the same.

    His issue is he has no vehicle access, I have a large parking area behind mine which he could cross over (knock the boundary wall down) to gain access.

    My question is what should I ask for money wise, he wont get planning without it. I't bothers me not really. The bungalow would be worth probably 150k.

    Would I be out of order asking for £25k ? I don't want to rob the chap but the build cost of the bungalow would be £50k tops so plenty of profit for him.

    Anyone have similar case ?

    #2
    From the sounds of it you've got the trump card in your hand. Don't give it away easily.

    If I were you I'd ask for a 50% share in the profit and draw up an option agreement along those lines, rather than having a fixed price.

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      #3
      Don't forget about capital gains tax. I believe it kicks in if your garden is over a particular size relative to the house.

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        #4
        The normal way that such value is calculated is by referring to a case where a judge set out what was to be a reasonable way of valuing a right of way that allowed another area of land to be developed.

        That was Stokes v Cambridge City Council, when the judge decided that between one third and one half of the increased value of the building plot would be a reasonable sum to be demanded by the person who allows the development to proceed.

        e.g. Part of garden valued at £5K as garden land associated with the dwelling.
        Same part of the garden valued at £100K when granted planning permission for a single detached dwelling that incorporated the other land as the only way to access that plot.

        Increase in land value is £95K.
        Payment to owner of land that made this plot possible would be negotiated for as little as possible.

        Peyment required by owner of land that made the plot possible would be negotiated for as much as possible.

        one third is £30K allowing for the costs of planning permission.
        one half is £45K allowing for the costs of planning permission.

        Using a local estate agent to value the potential building plot would be the sensible thing to do before arriving at an acceptable sum to allow the plot to be developed.
        Local knowledge is important because the price of building plots fluctuates so much in different area of the country, but it is the increased value of the plot that is used, rather than the value of a finished building that would have cost rather more in building costs to be completed.

        Seeking a payment of one third of that price would be more greedy than is normal in such situations, as the cost and effort of building the house would not then have been taken into account.

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          #5
          Remember though that, unlike the case you mentioned (which covered compulsory purchase by a council), the OP in this case here is under no obligation whatsoever to part with their property. So anything a judge dreamt up under reasonableness is not necessarily what the OP needs to base his/her decision on.

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