Right of way

Re: Right of way

Postby MacadamB53 » Tue Oct 03, 2017 4:33 pm

Hi SwitchRich,

in the eyes of a mortgage company or bank the value of the asset is not affected by rear garden access

the priority for the mortgage company or bank is assessing the mortgagor's reliability - they'd lend pretty much whatever if they were certain of repayment...

...I think you may be confusing market value - how much someone (a punter, not the bank) will pay for something - with the mortgagee's assessment of whether the loan is sound in the circumstances.

for the benefit of the forum, ask you pal to confirm that a mid-terrace with no rear access and a mid-terrace with rear access in his manor (and all else being equal) will likely be marketed for the same value, attract the same level of interest and ultimately sell for the same price?

kind regards, Mac
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Re: Right of way

Postby stufe35 » Tue Oct 03, 2017 4:58 pm

Considering the neighbours property...

You want to have a summer evening barbeque, friends around , in the garden wine flowing gentle music, kids running around having fun.

Without a ROW great- your garden is totally private , you control it.

With a right of way...

neighbour rumbles through with wheelie bin, comes back a few miuntes later. 10 mins later goes out again with dog to walk it, comes back half an hour later. Teenage son goes out on bike. Comes back with 3 of his mates. an hour later they all trapse through again to leave (with their bikes)............you cannot control this...any of it.

A right of way has a massive impact on desirability of a property..thats why he has it locked..because people coming through your garden unannounced at any time of day with any frequency ..is not desirable and ruins your privacy. I would never buy such a house (if I could possibly afford one with no right of way).

I believe 1% is way off the mark. 10% might be nearer. I had one valued once by a professional ...for a similar (but not identical) situation , their estimate was 10-15% of the servient properties value.
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Re: Right of way

Postby Eliza » Wed Oct 04, 2017 1:23 pm

YOU are the one that is choosing to block your back gate. Neighbour isnt the one blocking your back gate.
Apologies for not giving exact personal details in my posts - you never know who is reading....
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Re: Right of way

Postby SwitchRich » Wed Oct 04, 2017 2:29 pm

MacadamB53 wrote:for the benefit of the forum, ask you pal to confirm that a mid-terrace with no rear access and a mid-terrace with rear access in his manor (and all else being equal) will likely be marketed for the same value, attract the same level of interest and ultimately sell for the same price?


Hey Mac, So yes from his point of view would see no extra value in access to the rear and would market them identically. From the point of view of a surveyor they value buildings on a whole slew of factors some of which I mentioned before (location/build quality/transport links/schools etc etc). In that calculation they would not consider rear garden access to deviate a property's value by even 1%. There are so many other factors that have a more powerful effect on value than being able to access a garden via a path or ROW.
They remove emotion from the equation and look only at the bare essentials that a bank or mortgage company would care about. (e.g. is it of standard construction etc etc)

Now that is a totally different process by which a person will go through when they buy a house. This is full of emotions. Those might include... Is it pretty? Do I like the area? Does it feel like a home?
And the answer to all those questions is... "One man's junk is another man's treasure"... or whatever other analogy you like. It's a completely individual value decision.

The purpose of this thread in my eyes was to help the OP asses whether she wants an extension and close off her ROW. Or to see if there is a deal to be done with said neighbour on removing the ROW on his land, getting some free money, and then having her extension.
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Re: Right of way

Postby jonahinoz » Fri Oct 13, 2017 7:53 am

Indeed! Beauty is in the eye of the beholder. But in the eyes of a mortgage company or bank the value of the asset is not affected by rear garden access.

Hi,

Lenders will base their valuation on what similar properties nearby have sold for. If the one house without rear access hasn't sold, then it will not be factored into their statistics.

When we were looking to move, our criteria started with "Where is it?" followed by "Can we afford it?" Then we hit the deal breakers ... parking for two cars ... garden for the dog ... WCs upstairs and down. If it passed those tests, then we would get down to the nitty-gritty. The lenders, on the other hand, would regard a missing kitchen sink as a deal breaker.

I would regard any RoW as a deal breaker, unless I could give it away. But I appreciate there are others who can only buy what they can afford ... been there, done that, survived. Then life threw three whammies in a row, when we were in our mid-70s ... survived those too.

John W
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Re: Right of way

Postby Roblewis » Fri Oct 13, 2017 9:42 am

Sorry to disagree with all those who think access to the rear other than through the house is a not a price sensitive matter. If others without RoWs have not sold most astute surveyors will be thinking "why not" and factor in around 10-15% discount. Modern housebuilders get away with it because they know there are people out there desperate for a home who will overlook the problems that will arise. Imagine having to keep your rubbish out front and carry everything through the house, some do not even have land out front.
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Re: Right of way

Postby Collaborate » Fri Oct 13, 2017 12:05 pm

Roblewis wrote:Sorry to disagree with all those who think access to the rear other than through the house is a not a price sensitive matter. If others without RoWs have not sold most astute surveyors will be thinking "why not" and factor in around 10-15% discount. Modern housebuilders get away with it because they know there are people out there desperate for a home who will overlook the problems that will arise. Imagine having to keep your rubbish out front and carry everything through the house , some do not even have land out front.

Previous owners of our house built a side extension so now everything has to come through a side utility room. It isn't a problem, but if we had an alternative route in to the back garden we would find that useful, though a 10-15% discount would make it a very valuable ROW.
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Re: Right of way

Postby Roblewis » Fri Oct 13, 2017 7:54 pm

Solicitors are always a bit conservative in valuation :D . In my own case the conveyancing solicitor thought my damages would only equate to around £5k, Court independent surveyor put it at circa £21k; ie 20% of house sale price in 2009, and this was accepted by the court. This was merely the misrepresentation of facts within the SPIF. A RoW to the rear garden for a terraced house is to me a valuable right.
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