How much is garden land worth?

If you want to buy part of a neighbour’s garden or someone wants to buy part of yours you’ll want to know how much is garden land worth. We look at how to value garden land and how the process of buying and selling land works.

Angela Kerr Director, Editor

What is garden land?

Garden land is land that can be sold by homeowners to buyers who will use the space to extend their own garden, for development or commercial use.

Is garden land for sale?

The easiest way to find out whether a neighbour is prepared to sell part of their garden to you is to speak to them. Some circumstances may make it more likely that they will be open to selling some of their garden land, such as if they have a large garden or if they are planning to sell the property in the near future.

What factors affect how much garden land is worth?

Factors that affect how much garden land is worth include:

• The location
• The condition of the land
• The size of any existing garden
• The value of the house next to it
• Whether car parking is possible on the land
• whether the garden land already has planning permission

What is the average price of garden land in the UK?

A study by The Grass People of 50 UK locations across the UK found the average price per square metre of gardens was £1,526. But the answer to how much is garden land worth will vary considerably.

How much is land worth in my area?

Gov.uk lists average land values by local authority, but states: ‘Values of individual sites are highly sensitive to plot-specific characteristics and the report does not present estimates of market value.’ So to establish how much is garden land worth in your case, you’ll need to carry out your own valuation.

Is there a land value calculator in the UK?

Unfortunately, there isn’t a land value calculator in the UK. So to establish the value of the garden land you’ll need to follow the steps set out below.

How to calculate land price

There are two main ways to value garden land:

• The comparable method: This takes into account sales of similar plots and will then adjust the figure to take into account plot size, location and scarcity.
• The marriage value method: This calculates how much the value of the property would be increased by when adding the land. If you’re selling a piece of land to a neighbour, you should also separately consider how much the loss of this section of land would reduce the value of your property. Traditionally, marriage value is split 50:50. However, it may be that a 50:50 split would be on the basis that the price given to you for the land is also greater than the loss in value of the garden.

Also, this assumes the land could not alternatively be sold to other adjoining owners and there is only one potential buyer because the parcel of land is ‘land-locked’.

An experienced valuation surveyor will consider the above and arrive at an opinion on how much is garden land worth in your case. If that is not economically viable then you could estimate these figures yourself.

For help getting an accurate valuation of your garden and/or property, find and compare quotes from local valuation surveyors today

Benefits of land valuation

Choosing a chartered surveyor to value your garden land has several benefits:

• If you are selling a piece of land to a neighbour: being informed by an expert on how much your garden land is worth will help you set a realistic asking price
• If you are buying land: This will help you avoid overpaying and make an informed decision about whether to proceed
• Beneficial for tax purposes: Having an official valuation can be beneficial for tax purposes, such as for calculating capital gains tax, inheritance tax, or stamp duty.

Selling a piece of land to a neighbour and capital gains tax

When selling your only or main home, profit on the sale is usually exempt from capital gains tax due to Private Residence Relief (PRR). It’s possible to claim this relief if you sell part of the property, such as part of the garden and the relief automatically applies to properties of up to 1.2 acres (0.5 hectares) in total. Although, it may be possible to claim relief if your plot is bigger than this.

With any issues regarding tax, we always recommend that you speak to an Independent Financial Adviser to ensure you are getting the latest advice that is tailored to your circumstances.

Can I sell part of my land to a neighbour?

To establish whether you can sell part of your land to a neighbour there are some hoops you may need to jump through, for example if you have a mortgage.

How are mortgages affected by buying or selling garden land?

If you own a property with a mortgage you will need to get your mortgage lender’s agreement before selling garden land. Without their permission you won’t be able to sell. The lender may require you to make a partial payment of the amount you borrowed on your mortgage with some of the proceeds of the sale.

Do I need a conveyancing solicitor to sell garden land?

We would strongly advise using a conveyancing solicitor to buy or sell garden land. You will need a land registry document known as a Transfer of Part of Registered Title (TP1) in order to make the sale official. A Transfer of Part allows you to separate part of your land from your title in order to sell it to someone else.

Restrictive covenants on land

If you’re buying garden land, one of the benefits of using a conveyancing solicitor is that they will check if there are any restrictive covenants. Restrictive covenants typically happen when the person selling land wishes to restrict what the buyer can do with it. However, in some cases the vendor will agree to restrict their own use of the land they are keeping.

How to buy land from a neighbour

If you want to buy land from a neighbour the process works in a similar way. You’ll need to establish the value of the land and appoint a conveyancing solicitor. You’ll also need to arrange financing to pay for the land.

How much does a small piece of land cost?

There are no hard and fast rules about how much a small piece of land will cost. It will vary on a number of factors including location. To get an accurate estimate of the land’s value you can follow the steps above or get a valuation survey carried out.

For help getting an accurate valuation of your garden and property, find and compare quotes from local valuation surveyors today

How much is my garden worth to a developer?

If the location of your garden land means it’s possible to sell to a developer, the amount your garden is worth to a developer will depend on factors including:

• The size of the plot and its condition
• How scarce land is in the local area
• Whether or not you already have planning permission for the garden land
• Access to the plot by road