A friend asked me for advise .
They have a house within walking distance to a north shore station . Next door is zone for town houses . They are not .
Some one has taken an option on the house next door and is putting in an application for town houses , but need an easement though my friends front yard to do this .
They have offered them 25 k for the easement , plus make good any damage done.
Friends house would be worth in low 1 mills .
My thoughts are a town house development next door would impact the value of their property so it's not in their intersect for the development to go ahead .
The easement will also potentially impact the vale of the property and may impact the ability to develop the block further down the line .
I've advised them to talk to a local agent ( who we know and trust ) on what would be the dollar value impact on their property of giving the option.
I'd also advised them to talk to a local company who do development applications on what would be the commercial value of the easement and how it might impact their ability to redevelop their own block down the line.
I also raised the possibility that if the next door block needs the easement to develop the block and the current option expires , could they explore the possibility of getting an option and then either on selling with development approval / the easement in place or getting partners in to do the development.
Does anyone have any thoughts / advice ?
Cliff
They have a house within walking distance to a north shore station . Next door is zone for town houses . They are not .
Some one has taken an option on the house next door and is putting in an application for town houses , but need an easement though my friends front yard to do this .
They have offered them 25 k for the easement , plus make good any damage done.
Friends house would be worth in low 1 mills .
My thoughts are a town house development next door would impact the value of their property so it's not in their intersect for the development to go ahead .
The easement will also potentially impact the vale of the property and may impact the ability to develop the block further down the line .
I've advised them to talk to a local agent ( who we know and trust ) on what would be the dollar value impact on their property of giving the option.
I'd also advised them to talk to a local company who do development applications on what would be the commercial value of the easement and how it might impact their ability to redevelop their own block down the line.
I also raised the possibility that if the next door block needs the easement to develop the block and the current option expires , could they explore the possibility of getting an option and then either on selling with development approval / the easement in place or getting partners in to do the development.
Does anyone have any thoughts / advice ?
Cliff