Buying land from a developer

sst1234

I am looking for a plot for a self build, I have been on the lookout for some time but have been unable to find anything in the right location. About a year ago a site just a few doors away was sold to a retirement homes developer. They are still in the process of acquiring planning permission.

I am wondering if approaching the developer to purchase a small plot is something that would be worthwhile. I know that I will receive advice that I should try since they can only refuse. That would be a fair comment. It feels a little unusual since individuals normally sell land to developers, not buy from them.

Is this a scenario that anyone on this forum has come across before and can you offer any advice as to how to start the conversation and negotiate.

Thanks in advance.

davidmcn

Are they likely to have a "small plot" going spare? Their planning application probably envisages them filling the whole site with their own properties.

System

Tbh it'll be unlikely they'll want to sell as they'll have the site loaded with as many properties as possible and if they are retirement homes presumably they'll be for letting rather than sale.
Always worth asking but have a look at their planning and see how dense their development is and how much of the site they are using, might be an awkward corner you could negotiate on, one thing they definitely won't want to do is compromise their own development or permissions so it's unlikely you'll get a good plot out of them

sst1234

This is exactly the barrier I anticipate. I wanted to know if anyone had had success in this sort of venture previously and how they went about it.

davidmcn

sst1234 wrote: »

This is exactly the barrier I anticipate. I wanted to know if anyone had had success in this sort of venture previously and how they went about it.

Not something I've encountered before where only a single house plot is involved.

I imagine you'd have to make contact with someone at a very early stage who was looking at a site slightly too large for their own purposes.

eddddy

sst1234 wrote: »

This is exactly the barrier I anticipate. I wanted to know if anyone had had success in this sort of venture previously and how they went about it.

It's unlikely that the economics would work for you.

The developer would want to maximise their profits. The situation might be as follows:

• If the developer had a piece of land suitable for building a house that will be worth, say, £450k - the build cost might be about £150k...

• ...so they could make £300k from that piece of land.

• So you might have to offer over £300k for the land to tempt the developer to sell to you instead.

• If you hire subcontractors to do the build - it might even cost you more than the £150k the developers would pay, because you don't have the economies of scale that the developer has.

So you'd be better off trying to find a plot that isn't currently owned by a developer.

POPPYOSCAR

sst1234 wrote: »

This is exactly the barrier I anticipate. I wanted to know if anyone had had success in this sort of venture previously and how they went about it.

Some relatives bought a plot of land from a developer with planning permission for two detached houses.

I warned them that a developer would not be selling on a profitable site.

They took no notice.

They had the houses built and then could not sell them. Had to rent them out while they found buyers.

They had to sell them at a loss and ended up with over £120,000 debt between them.

Katapolt

I would advise you research local developers, the smaller family run businesses are more likely to be open to what youre suggesting.

i work for a developer and we are currently selling 2 plots of land. the designs and planning is all done, so the houses going on it are already confirmed, but other developers will be able to find land, and go down the route you want.