advice on making an offer for land

chivers2000

We're thinking about extending our house, and ideally would like to buy a small plot of land adjacent to our property and build a garage on it. The land currently belongs to the neighbouring property, but they don't use it.

A local estate agent suggested that when we make an offer for the land we shouldn't reveal our intention to build on it, otherwise the price will be higher.

I'm worried about buying the land and then not getting planning permission (agent reckons £20k would be about the right price, which would be too much to pay for some grass.)

Is it possible to make a conditional offer to buy land, where the transaction only completes if/when planning permission comes through? However, this would obviously involve revealing our intention to build to the neighbour!

The neighbouring property is, incidentally, an enormous house that has been subdivided into separate flats that are let out. The estate agent recommended we write a letter with our offer to the freeholder.

We're right at the beginning of planning the project and would welcome any advice. We've spoken to an estate agent and builder. Still need to get architect and sort out whether we're able to buy the extra land, and it's tricky to know how to get started.

Thanks again

chivers

TonyMMM

The owner of the house next door would have to be pretty dim not to realise you might want to build on the land if you try to buy it from them.

As you say any offer conditional on planning being granted is going to reveal your plans anyway, so why not just be upfront about it and have a chat to the property owner.

Your local planning office may be able to give general advice on your application - and there is nothing to stop you putting in the application before you try and buy the land.

iamcornholio

chivers2000 wrote: »

Is it possible to make a conditional offer to buy land, where the transaction only completes if/when planning permission comes through? However, this would obviously involve revealing our intention to build to the neighbour!

You could, but no-one in the right mind would entertain it

"I want to buy your land at a fixed low price, and will apply for planning permission (to increase it's value to me), but then if I can't build on it, I don't want your land any more"

I would also expect the tenants to have some interest in this too, if its sale will take away some of their usage of the land

Unless the current owner, is completely clueless, and also has a clueless legal advisor for the conveyance, then their first thought is "Why does he want my land and what can he do with it?" ie what is it's ultimate potential, and therefore value.

You can, if you wish, make your planning application without the land being sold, and then you will know for sure, and can then negotiate from there

mikey72

iamcornholio wrote: »

You could, but no-one in the right mind would entertain it

"I want to buy your land at a fixed low price, and will apply for planning permission (to increase it's value to me), but then if I can't build on it, I don't want your land any more"

I would also expect the tenants to have some interest in this too, if its sale will take away some of their usage of the land

Unless the current owner, is completely clueless, and also has a clueless legal advisor for the conveyance, then their first thought is "Why does he want my land and what can he do with it?" ie what is it's ultimate potential, and therefore value.

You can, if you wish, make your planning application without the land being sold, and then you will know for sure, and can then negotiate from there

But he would also know for sure you could get permission, so would be looking for the maximum price plus some, as he knows how badly you now want it, and it's now prime building land, not a gamble, and tbh, I would be less than impressed if it was my land you'd applied for permission to build on without asking first, so it would be even more, if I did sell it.

Rich_Z

I'm going through the same thing right now. All I would say is it's not very neighbourly to try and purchase the land and not disclose your intentions is it? How would you feel if it is was the other way round? Typical of EA's!

Agents have an interest to push the price up, so I would take no notice of what they say and put something in writing to your neighbour. The land is only worth what your prepared to pay surely? But first consider getting a land registry check done. You can do it yourself or get a Solicitor to do it. My Sol did ours for about £100. When you know who owes it, it's exact measurements then you can make an offer in writing? Cost in all your sol fees, and the other parties, into your offer as well?

In relation to planning permission, just make a verbal approach to the local office, and try and speak direct to the Inspector that covers that area. They should be helpful and know the area, and tell you whether they would have any issues, if he/she has a personality and will engage in a chat.

Leif

I suppose there are a number of questions to ask including:

What value would the land add to your property?
What value would the land + garage add to your property, taking into account garage building costs?
How much do you want the land, and how much are you willing/able to pay?
Can you ask the council to advise on the likelihood of getting planning permission? The person who wanted to buy my house before me asked the council about extending upwards, and they said "No way", so he pulled out of the purchase.

The fact that the house next door is rented flats suggests that the owner does not really care about the garden. But since he/she rents it out, it is a money making enterprise, so they would want to maximise profit. It might be that they are financially wobbly, and might sell it cheaper than otherwise.

I might be tempted to first answer the questions above, then ask the owner how much he/she wants for the land, explaining the intended use, and that you might not get planning permission. It is possible they will suggest a silly sum, but at least you will not have put forward too high an amount. Then I suppose it is the usual business of you putting forward a low value, them refusing, and knocking down their value etc. You are probably best to withdraw, saying you cannot afford what they want. Leave it and perhaps after a month, or 6 months they will come back with an offer. You have an advantage in that no-one else is likely to buy the land, so you are the only likely purchaser, and it is an offer of cash for them. The fact that they own the flats suggests they are not poor, so don't feel bad about negotiating. (I once did not offer a low amount on a house, cos the owner was an old retired chap, but I had no reservations with young people.)

111KAB

You can obtain planning permission on land you do not own however in this situation I would look into whether your local authority has adopted the 'pre-application' method. That way with a decent approach you can test the water with limited financial exposure. Subject to the response it is then up to you if you want to submit a conditional (upon planning) offer or an unconditional offer or indeed a combination of both. IMO your offer(s) should include provision to meet both sides legal costs (although sometimes a vendor can be suspicious of this) including registry cost. As others have said it is pointless trying to obtain at pure land value. Good luck! Oh yes make sure your offer(s) is Subject to Contract.

chivers2000

Thanks to everyone for all the tips. Didn't realise planning permission can be applied for before you own the land you propose to build on, so this is very good to know.

Will attempt to gauge how likely my planning application would be to succeed, and then make contact with the freeholder if things seem optimistic. I'll let them know what I'm interested in building.

My local council (Merton) does have a pre-application advice service, but their website explains that the planning officer "can only answer basic questions such as how to make an application or where to find our planning policies" - but the rumour I've heard is that depending on who you get, they may actually be very helpful.... fingers crossed.

Thanks again,

Chivers.

111KAB

chivers2000 wrote: »

My local council (Merton) does have a pre-application advice service, but their website explains that the planning officer "can only answer basic questions such as how to make an application or where to find our planning policies" - but the rumour I've heard is that depending on who you get, they may actually be very helpful.... fingers crossed.
Chivers.

Ah Merton! Firstly go for a Cat D pre-application but you must get all the facts/drawings/location plan/report etc spot on. The more (accurate) information you can provide the better as it will set the scene for (hopefully) your full detailed application. The content of your pre-ap will not be written in 'tablets of stone' but it will be hard for the authority to wriggle out of things if your detailed application mirrors it. Be aware however that you are, in effect, enhancing the land value prior to your acquisition negotiations.