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Discussion Starter · #1 ·
Morning!

The land at the back of our house is for sale. When we bought it, the developer had cut the land in half, so he could build another house on it - but he's decided not to go ahead now! :rolleyes:

So, he's put it up for sale - but at a cost, £150,000!! :eek:

Now is that an alright price? It has planning permission for a 3 bedroomed, 2 storey house - but we would want to turn it back into what was the rest of our garden and build a double garage so I can finally have somewhere to fit my VW, WHEN I get it! :incheek:

It would also make the value of our house go up considerably, which is good for us! ;)

Just need to get a feeling as to whether this is the right thing to do.

Thanks
 

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I suppose its about right as the price goes, especially with planning permission, particularly if its in a town location, you also have to look at it from the other perspective. The Builder/Developer has decided not to build on it, but that doesnt mean future buyers wont.
 

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Its a difficult decision to make without seeing it all in detail.

What you need to think about is that the land will cost £150K to buy (plus fees) then allow 20K for you all singing and dnacing garage. Will a bigger garden and a flash garage add 170+K on your house?

Maybe the best option is to buy the plot, build the house yourself and sell both, with a view to buying a bigger housewith garden and double garage...

You also need to consider if its a decision of the heart (ignore the above) or onw of the walet (see above)

The big question I would ask is why the developer has decieded not to build on the plot? he could make some easy money by building another house, are there problems with the plot?

Any other questions drop me a pm.

Cheers

ttcharlie
 

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DarkHorse is right - planning permission adds a lot to the value because it means someone's already gone to all the trouble and it's effectively a green light to build.

Buying 150K worth of land and adding a garage onto it would not be a good use of money, at least not from an investment point of view. Buying the land, building a house on it and then selling it or even both should then give you a nice amount of wedge to buy yourself a house with everything you need already there (can I live in the games room with the pool table? Please?)! Of course, finding the money to buy the land and build on it is another issue.

As has been pointed out, you need to find out why the developer is no longer going to build there. I happened to switch on the TV when I got back from work the other day and there was one of those many (many, many) property programs on. The people had bought a plot of land and were going to build on it. It already had planning permission, the council had already put sunken kerbstones in at the access way to allow cars to drive in and it's location meant it was easy to connect electricity, phone, gas, sewerage, etc to it. They're other things you need to consider.

Hope (at least some of) that helps!
 

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Discussion Starter · #6 ·
ttcharlie said:
Its a difficult decision to make without seeing it all in detail.

What you need to think about is that the land will cost £150K to buy (plus fees) then allow 20K for you all singing and dnacing garage. Will a bigger garden and a flash garage add 170+K on your house?

Maybe the best option is to buy the plot, build the house yourself and sell both, with a view to buying a bigger housewith garden and double garage...

You also need to consider if its a decision of the heart (ignore the above) or onw of the walet (see above)

The big question I would ask is why the developer has decieded not to build on the plot? he could make some easy money by building another house, are there problems with the plot?

Any other questions drop me a pm.

Cheers

ttcharlie
The reason the developer has decided not to build is I s'pose to cut his losses! We are in a 'conservation area' village and his planning permission was turned down twice and accepted on the third time! From what we have gathered, both the next door neighbours will put in a 'party wall' defence thingy! Meaning they would not give him permission to dig down foundations against their walls. I think this is why he has given up!

The size of the plot is approx 8m x 30m (don't know sizes in acres/hectares etc). There used to be a garage there which belonged to the house we are living in now, so we'd like to turn it back to garden land not building land - if that's the right term.

Like the idea of buying and building cos I'd get the lovely sarah Beeny to come and oversee things - that would be great :D ;)
But I don't have the finances to do that, nor the time!

You sound as though you are in the business, or a builder - I'm I correct - you have given some sound advice, thanks :hangloose
 

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Discussion Starter · #7 ·
SomeEnglishGeezer said:
DarkHorse is right - planning permission adds a lot to the value because it means someone's already gone to all the trouble and it's effectively a green light to build.

Buying 150K worth of land and adding a garage onto it would not be a good use of money, at least not from an investment point of view. Buying the land, building a house on it and then selling it or even both should then give you a nice amount of wedge to buy yourself a house with everything you need already there (can I live in the games room with the pool table? Please?)! Of course, finding the money to buy the land and build on it is another issue.

As has been pointed out, you need to find out why the developer is no longer going to build there. I happened to switch on the TV when I got back from work the other day and there was one of those many (many, many) property programs on. The people had bought a plot of land and were going to build on it. It already had planning permission, the council had already put sunken kerbstones in at the access way to allow cars to drive in and it's location meant it was easy to connect electricity, phone, gas, sewerage, etc to it. They're other things you need to consider.

Hope (at least some of) that helps!
All sound advice - thanks
 

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£150k is alot for the land. Being in the Property Industry, I can confirm that there is no way the value of your house will increase by the amount you spend on buying the land. Also, being a conservation area, you might not get permission to build a garage. Sounds silly, but check with your local authority first.
 

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zeebrathree said:
......You sound as though you are in the business, or a builder - I'm I correct - you have given some sound advice, thanks :hangloose
I'm in the business and didn't learn through watching TV programmes.... :crazy: :crazy: :crazy:

One other important bit of advice... DONT underestimate the hassle you will have to put up with, even if just go for the building of the garage. I did an extentsion on my house last year and caused me more grief than things I have done which are x 1000 bigger!
 

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re the party wall issues, the 1996 act allows an owner to alter extend, build off, lower etc. The act only provides protection to owners and acts in the interest of the wall.
The adjoining owners can effectively only stop reinforced foundations projecting onto theirs if the wall itself is built entirely on their own land, ie not a party wall, however, under section 1 of the act, a wall can be built astride the boundary under a section 1 line of junction notice.
Adjoining owners cannot stop works from taking place, under the act the Building owner (in this case the developer) can build against the walls, so long as he makes the adjoining owners aware under the act.
If they dispute, surveyors are appointed to produce an award, which is a legal document that stipulates conditions for the construction to ensure the building owner can undertake his proposals without unneccessary disruption to the AO. The award will normally allow for the beneficial party to pay the fees of the AO's surveyor.
Party Wall Surveyors in this instance do not have a client, they act impartially through the legislation.
Drop me a pm if you want any party wall advice.
D
 

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Discussion Starter · #12 ·
noms2000 said:
£150k is alot for the land. Being in the Property Industry, I can confirm that there is no way the value of your house will increase by the amount you spend on buying the land. Also, being a conservation area, you might not get permission to build a garage. Sounds silly, but check with your local authority first.
But there was a garage there in the first place that the developer knocked down - would I have to get planning to rebuild something that was always there?

again, sound advice, thank you :hangloose
 

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Discussion Starter · #13 ·
Skello said:
re the party wall issues, the 1996 act allows an owner to alter extend, build off, lower etc. The act only provides protection to owners and acts in the interest of the wall.
The adjoining owners can effectively only stop reinforced foundations projecting onto theirs if the wall itself is built entirely on their own land, ie not a party wall, however, under section 1 of the act, a wall can be built astride the boundary under a section 1 line of junction notice.
Adjoining owners cannot stop works from taking place, under the act the Building owner (in this case the developer) can build against the walls, so long as he makes the adjoining owners aware under the act.
If they dispute, surveyors are appointed to produce an award, which is a legal document that stipulates conditions for the construction to ensure the building owner can undertake his proposals without unneccessary disruption to the AO. The award will normally allow for the beneficial party to pay the fees of the AO's surveyor.
Party Wall Surveyors in this instance do not have a client, they act impartially through the legislation.
Drop me a pm if you want any party wall advice.
D
Errrr....wha! :crazy: :crazy:

Seriously, sounds very technical and alot of hassle - thanks for your advice, much appreciated. I'll be in touch if i need any clarification. :)
 

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zeebrathree said:
But there was a garage there in the first place that the developer knocked down - would I have to get planning to rebuild something that was always there?

again, sound advice, thank you :hangloose
yes, in a conservation area

yes, normally

no, if within 'premitted development' (which a garge will often be, but not in a Conservation area AFAIK)
 

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zeebrathree said:
But there was a garage there in the first place that the developer knocked down - would I have to get planning to rebuild something that was always there?

again, sound advice, thank you :hangloose
I've recently got planning permission for a garage at the end of the garden. The people who lived here before us knocked down a garage but didn't replace it and the council told me that I had to get planning permison as the whole thing had been demolished.
 

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ok several issues here.

Party wall aggreements not much of a hassle really, can cost a bit and delay a development but will not stop it.

Its likely that the developer has either run out of capital to actually build the house on the land, or decided that the return gained from increasing the land value (by getting planning cosent) is enough and its not worth the extra investment to build the property compared to the extra return to be made.

Its very hard to value the land without knowing the particulars but rest assured you will be loosing money if you buy it and do not build on it.

The planning consent will only run for a few years and after that will have to be reapplied for and there is no garauntee that it will be granted again.

You will have to applied for permission to build a garage and just because there was one there previously doesn't mean you will get consent.

However, buying a developement plot and returning it to garden land is not sound financial practice. the plot as garden land will be worth a tenth of the price you paid as a development plot with planning consent.

If you then changed your mind after a year or so, wanted to demolish your newly built garage and create a development plot again you would have to reapply for permission.

It could only be recommended if you really wanted a big garden with garage and are going to stay put for a long long time. otherwise you will not be able to recover your outlay when selling your house (even with a big garden and garage).
 

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Discussion Starter · #17 ·
Excellent advice everyone - I think I know what to do now, or rather what NOT to do! :D

Very informative! Thanks
 

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zeebrathree said:
You lot have just saved me approx £200,000 maybe even more - you all deserve a pat on the back! ;)
If you've got that sort of money spare you can buy my house and bit of land and still have change for a couple of splitties ;)
 

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Discussion Starter · #20 ·
Nige G said:
If you've got that sort of money spare you can buy my house and bit of land and still have change for a couple of splitties ;)
That's it - I haven't, sorry! It would mean talking nicely to the mortage people, but now I don't have to do it, phew! :D
 
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