question re: planning permission and property price?

s@sha

Hi, I was wondering if anyone can give me a rough idea whether having planning permission to build another house in my garden will add much value to my property?

We have a huge garden but a very small 2 bed house. 2 architects have looked at it & agreed that there is definitely potential to build another house, subject to planning permission though one says a 3-bed, the other only 2-bed. We desperately need a bigger house but can't afford to move to a 3 bed-house in the same area.

We were wondering if getting planning permission to build another house there would add enough value to the property as a whole for us to sell and move to the type of house we need. Our house was valued 2 years ago at £157,000.

Any advice appreciated!

seven-day-weekend

I think it may make it easier to sell, but I don't think it will add very much.

BobProperty

IMHO in this situation you make money by either selling part of your garden with PP for a dwelling or you actually build the dwelling and sell it. I take it the loss of part of the garden and another house nearby does not affect the value of your house?

s@sha

The loss of part of the garden would make no difference to our house value...in fact it may make it easier to sell because at the moment it is so big (and mostly on a slope) that a lot of it is not practical to use, but does need a lot of mowing to keep tidy. It's a ridiculously huge garden for a small two-up-two down modern house.


We are in the far corner of a cul-de-sac so adding an extra house would not affect the other houses nearby, it would not overlook anyone. it would just become an extra house in the cul-de-sac & would not look out of place so I can't see that it would detract from our house value.

Of course, our other option is to forget the idea of PP for another house and just go for an extention to our existing home. THe architect has said it could be made into a 4 bed house with en suite (if that's what we wanted) but I don't know if we could afford an extention & it would be major disruption (I imagine!) for weeks (or months?)

Bossyboots

Firstly, having the extension itself built need not be too disruptive. When we had ours built, the workmen were outside or in the shell of the extension the whole time. You clearly have sufficient room for delivery of materials. Our workmen popped in occasionally to use the loo. They did expect lots of cups of tea but as I was out quite a lot towards the end, they started bringing their own.

You need to work out what it would cost you to move. Take account of legal fees, stamp duty, estate agents costs and removal costs. Also, this will probably cause you as many weeks of disruption as you fear with having an extension built. When you have considered the costs of moving, together with the disruption and the potential to find you have moved next door to neighbours from hell, you can balance that against whether an extension is a more viable option.

Solar1

Is there scope to do both. i.e extend your house to suit your needs and apply for planning permission on the other plot. Personally I would apply for planning permission on the plot as this would then be as good as money in the bank.
If you cannot sell it through an agent you can always auction in.

Although in your position I would consider building a three bedroom house on it yourself. If you did the latter then you would have a three bedroom house where you want it. The disruption to your own living accomodation would be less, as effectively it would be next door. When to new house is built you could sell the house you are in now and move into it.

As the house you are then selling is you main residence there would be no Capital gains tax, also no stamp duty, no removal costs and depending on circumstances you may be able to claim VAT back on the materials as a self build . Thus all the money from the sale of your first house is yours ( there are of course the obvious expenses i.e estate agents , planning fees, etc)

I think I would also apply for planning permission for an extention on the original house as you may find it would also attract buyers looking for a three bedroom house.