Our eminent residential property expert, Ross Ward, answers your questions about moving home. If you have a query about buying or selling, email marketing@tayloremmet.co.uk
I am buying a new build property and have been asked to exchange contracts, even though it will not be ready for a couple of months. Do I have to pay a deposit at this stage?
It is normal to pay a ten per cent deposit on exchange of contracts. This is the amount you will then forfeit if you withdraw from the sale.
If construction work is involved and there is a long gap between exchange and completion, a lesser deposit may be accepted – normally five per cent – but it is unlikely the builder will proceed without any form of deposit being paid.
When you sign the contract you will be asked to give your deposit to your solicitor so it can be passed across to the developer on exchange.
I am thinking of selling part of my back garden as a building plot. What should I consider?
You will need to have an accurate plan of the land drawn up to identify the exact size of the plot being sold and any rights of way the buyer will require.
You will also have to consider whether the plot will need connecting to existing pipelines, cables and drains and, if so, what contributions the buyer will make towards maintenance. Alternatively, if you grant the right to lay new services through your remaining garden, access will be needed to your land to carry out future repairs and maintenance.
If you create a right of way, you will have to decide whether it will be restricted and if it will be for both pedestrians and vehicles. If there is a shared driveway, your solicitor is likely to impose clauses on the buyer preventing obstructions and requiring a contribution to its upkeep.
Vendors of building plots often impose new covenants to restrict the future use of the land. For example, you may want to ensure only one house is built and no other buildings can be erected without your consent. It is also possible to determine what type of house is constructed, say a bungalow, to prevent any invasion of your privacy, or insert a clause stopping any trade or business being run from the property.
If new boundaries need to be erected, you will have to decide who will be responsible and whether you wish to restrict the height and materials used.
If you have a mortgage, you will need the consent of your lender to sell part of the garden and this may involve a valuation, to make sure the remaining property covers the outstanding debt. If the property is leasehold, the consent of the freeholder may be required and finally, you should check the sale is not subject to capital gains tax.
Clearly, there is a lot to consider – not least the price of the plot. I would recommend you consult a solicitor and probably a surveyor before making your final decision.
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