How to value a plot

The neighbor that backs on to my house has a large garden and no children. We have a tiny garden and too many children. We have approached them and they have expressed an interest in selling us a portion of their garden. Has anyone done a similar transaction? Are there any restrictions to this kind of sale? Do we need planning permission to extend our garden? Are there any metrics you would recommend for valuing the land?

Thanks in advance

I’d say unfortunately that this is a case of non-substitutable goods. There is only that plot to buy. But… only you can buy that plot - nobody else has useful access.

So it depends how much you are willing to pay… and how badly the neighbours need the cash.

Only experience I have is (from countryside) my Dad offered to buy a small strip of land from neighbour’s adjoining residential plot for 20k. Neighbour wasn’t using that part (was growing wild). Neighbour wanted 50k. 1990s - it was a crazy price for a plot that size (1/3 acre). My Dad refused.
Offered the farmer on otherside 15k for slightly more, but less useful strip of field on other side of plot. Farmer agreed. It was a sliver of his field - made no appreciable difference to him.
Neighbour heard, and dropped his price to the offered 20k. My Dad had the hump by then and refused.

It’s all about how much you want it! And how your relationship will be with your neighbour should you manage to agree or not. Depends on if you have much relationship with them to start I guess.

Apart from the immediate benefit you will gain, buying the extra piece of land will also enhance the value of your property. One way to value it would be try to gauge the premium in your area for houses with larger gardens versus similar houses with smaller ones.

Good point, I’d guess 5% at least of house value and possibly a lot more depending on house and increase in the size of the garden, I.e more if you can double the size of it

Another positive would be that the additional backgarden space might facilitate a future rear-extension without consuming too much of the available space - that could also be attractive to a future purchaser, and might attract a premium.

At the end of the day the ball is in your court. Come up with a figure and explain your rational behind it. Work from there.

If they happened to be really generous individuals and gifted it to you, would they be liable for tax on the ‘real’ market value of the land - whatever that might be?

Also, when you say you have too many children, which one are you thinking of?