99 year lease??

[Apocalypse]

We are looking at selling a block of land to reduce our current holding expenses and reduce debt to finance additonal development. It is one of a number of adjoining titles we own. Problem is there is an old bessa block building straddling the boundary. We want to keep the building. There is a small annex type attachment that could be readily demolished without greatly affecting the building but there is still probably at least 3 metres worth of encroachment from the main structure. Please refer to the attached picture.

The obvious solution would be to alter the boundary. However this would be a relatively expensive option I'd imagine...get surveyors in, title amendments etc. Probably at least a few thousand dollars, and given these blocks are maybe worth 50K tops (each) that's a fair chunk of the proceeds.

What I would like to do would be, as a condition of sale, for the purchaser to agree to a $1 99-year lease of a small chunk of the land that the building encroaches on to (plus a bit around the dges for access. This chunk is about 150m2 (the total size of the allotment is nearly 2200m2. Does this sound feasible? Would a prospective purchaser be scared off because of such a condition? Would a formal lease document need to be drawn up by a solicitor or would a simply worded document suffice?

Any opinions are greatly appreciated.

 

[JoannaK]

if I were a purchaser I wouldn't agree to it as I may want to develop the land and this lease would inhibit those plans.

I'd be spending the money and altering the boundaries...it may not be as expensive as you think.

 

[Apocalypse]

if I were a purchaser I wouldn't agree to it as I may want to develop the land and this lease would inhibit those plans.

I'd be spending the money and altering the boundaries...it may not be as expensive as you think.

Hi Joanna, thanks for the reply. The land is in a "rural living zone" in a country council area. The minimum allotment size is one hectare. These allotments pre-date this Development Control measure, but I highly doubt any "development" would be allowed.

The type of purchaser to whom these would appeal is some one looking for a larger quieter cheaper block. Land 5-10km down the road is 80-90K for "large" 1200m2 average blocks, and 15km away (10 mins by road) it's 100+ for 6-800m2.

 

[jrc]

Why don't you consider an easement allowing the building to remain.

 

[Apocalypse]

Why don't you consider an easement allowing the building to remain.

I'd imagine that would involve a similar level of cost and mucking around as altering the boundary ultimately.