TelferYoung Discuss 'The Value Of A View'

The value of a view and who owns it has been highlighted by the recent case in Wellington where the ‘million dollar harbour views’ have been built out when a ‘fort’ was built on the neighbouring property. The affected party successfully appealed to the environment court and the view has been re-instated with the fort pulled down.  This led TelferYoung to raise the question of “who owns the view?”

Often a view is across or over the top of an adjoining property or properties. If the owners of those properties alter or extend their buildings, will the view be lost? If buying for a view, buyers need to be aware of the adjacent owners’ rights. They are entitled to build within the building envelope allowed under The District Plan. The Plan will set building lines and heights within which any building must remain. If the buyer’s view relies on the adjacent property not constructing within their allowed building envelope, then they are at risk of losing that view.

The professionals at TelferYoung, New Zealand’s largest independent property valuers go on to discuss how people can protect themselves.  A property on the edge of a reserve or area where building is not allowed or physically impossible to build should command a premium in value over a site where the view can be built out. If the view is across a neighbouring property, the buyer should establish what can be built there and how much that impacts the view, taking into account whether they would still want to live there if they lost the view.

In some cases, height restrictions can be placed over a neighbouring property to protect a view and this can be well worthwhile. However, this will generally cost to put in place. It is a good idea to remember if our view is actually through someone else’s building envelope, it’s not really our view.

In the above Wellington case, the Council have appealed the decision because the Environment Court has interpreted the District Plan differently from the Council and the Council are seeking a clear ruling. The outcome will be interesting to follow.

The TelferYoung team can provide specific advice as to the impact on value of losing or protecting your view, and advice on property valuations, so for further information please visit the website at http://www.telferyoung.co.nz