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How To Profit From Garden Land Without Harming Your Home's Value.

How To Profit From Garden Land Without Harming Your Home's Value

If you are interested in making use of your garden land without harming the value of your home, it is important to consider some of the top factors that many UK homeowners do before offering their land up for development. You can sell land for development without negatively harming the value of your home.

If you have an unwanted garden plot it is very unlikely that this amount of land will actually add much to the overall value of your home. If it has been sitting undeveloped for years or you are tired of tending to, you could access some extra capital from the land itself.

In an example of how selling some of your garden land can detract from your home value we look towards a homeowner in Surrey who got his property of 3 acres valued at £1.2 million. Although selling off the lands to put in three new houses around his own will drop the value of his house to £700,000 from £900,000, he sets to make a profit of £1 million on the land sale.

It's quite difficult to sell off land without harming the value of your home, but the money that you can access from the land sale will often overvalue the total equity that you can get out of the property anyway. Although his land and his home was appraised at £1.2 million, with the sale of the property and if he chose to sell his own home, he could stand to make £1.7 million pounds. As an added bonus you can also continue living in his home and accessing the £1 million of equity off the deal.

If you are looking at your land in terms of value, it's a rule of thumb that most developers are willing to pay a third of the value of the finished home for the empty land. This means that if your garden could fit a home valued at £250,000, you could expect around £83,000 in value for your land. It's very unlikely that your home will devalue at the same rate just for the sale of this land. Therefore, selling your land will almost always put you out on top even though your home is set to devalue for sale.

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