value of access to development land


R

robertmlaws

I have a parcel of land that could be developed. A neighbour can allow
an access road across a small strip of his land. We need to negotiate
a equitable way to split the value of the combined plot including the
access.

I have heard suggestions that the access is worth from 10% to 30% of
the combined site value.

In my case the access holder can make no other use of his access strip.
Also, I do have an alternative route (entirely on my land) but it is
less attractive to me.

Can uk.finance make any suggetsions?

Robert
 
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R

Richard Faulkner

In message said:
I have a parcel of land that could be developed. A neighbour can allow
an access road across a small strip of his land. We need to negotiate
a equitable way to split the value of the combined plot including the
access.

I have heard suggestions that the access is worth from 10% to 30% of
the combined site value.

In my case the access holder can make no other use of his access strip.
Also, I do have an alternative route (entirely on my land) but it is
less attractive to me.
The value of the "ransom strip" to you is represented by how much more
it is worth to you to access the site via the strip, rather than via
your own land. If you can put a monetary value on that, it may give you
a starting point, (your initial offer may be somewhat less than the
value to you).

Dont forget, the strip has no value to anyone else but you, so if you
gain access via your own land, it becomes worthless.
 
R

Ronald Raygun

I have a parcel of land that could be developed. A neighbour can allow
an access road across a small strip of his land. We need to negotiate
a equitable way to split the value of the combined plot including the
access.

I have heard suggestions that the access is worth from 10% to 30% of
the combined site value.
Not sure what you mean by "combined". Do you mean your land plus his
strip, or his strip plus what would be left of his land?

Such generalisations are completely useless. But where your site would
have no access at all (and hence could not be developed at all), then
clearly the value of the access could be up to 100% of the difference
of your land when ripe for development, and its value as is.
In my case the access holder can make no other use of his access strip.
So anything he could get for it would be a bonus. But would your land,
once developed, be a nuisance to him?
Also, I do have an alternative route (entirely on my land) but it is
less attractive to me.
In that case, the value of his strip will be less since it has no
"ransom value" and he can't frustrate the development. All you'd
gain would be added convenience. It boils down to how much value you
place on this convenience, and on how good your poker face is when you
try to convince him that it's not really worth all that much to you.
 
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R

RB

I have a parcel of land that could be developed. A neighbour can allow
an access road across a small strip of his land. We need to negotiate
a equitable way to split the value of the combined plot including the
access.

I have heard suggestions that the access is worth from 10% to 30% of
the combined site value.

In my case the access holder can make no other use of his access strip.
Also, I do have an alternative route (entirely on my land) but it is
less attractive to me.

Can uk.finance make any suggetsions?

Robert
I had just about exactly the same situation two years ago. In my case
though I didn't have the luxury of an alternative entry point.

Ultimately it's down to (hopefully) amicable discussion. There's no
hard and fast rule and every circumstance will be different, but if
it's any help I agreed a 1:5 split of the land development value.

__
Richard Buttrey
Grappenhall, Cheshire, UK
__________________________
 

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