How much does full planning permission add to value?

Hoof_Hearted

We have a small 3-bed bungalow n a prestigious area of Buckinghamshire. It is the worst house on a good road. We have full planning permission to create a 4-bedroom, 3-bathroom chalet bungalow and it was our intention to live in it after development. Anyway, we now have cold feet about doing the project at our age and the costs are higher than we anticipated. The bungalow is currently worth about £450K. In general, what would the value be with PP? Granted, it depends whether anybody wants to take it on. Advice appreciated.

DVardysShadow

Probably you have all the information at your fingertips.

Value unextended with PP = Value of extended - cost of extending.

If this is less then the value presently, then obviously, the value is unchanged

PasturesNew

Often with PP it's worth no more, it just might appeal to more people.

Rather than people seeing it and wondering if they could extend, they know, so they'd view it ahead of others - thereby giving you potentially a quicker sale.

JQ.

DVardysShadow wrote: »

Probably you have all the information at your fingertips.

Value unextended with PP = Value of extended - cost of extending.

If this is less then the value presently, then obviously, the value is unchanged

You missed quite an important element :

Value unextended with PP = Value of extended - cost of extending - Developer's Profit

Developers profit is anywhere between 20% and 30% profit on cost. You might get a private buyer to accept a lower profit margin, but they will need a profit margin.