Struggling to sell house with planning permission

eddddy

Doozergirl wrote: »

There are potential tax implications to selling separately, I imagine.

CGT can be avoided if they do things in the 'right order'.

i.e.

• Sell the garden first (ensuring that it remains a genuine part of garden right up until the date of sale - i.e. not fenced off etc)

• Then sell the house

That assumes that the house is the OP's PPR (Principle Primary Residence) - and not a second property.

getmore4less

Problem is you need to sell the plot/house with both agreements allowing the build.

Owner occupier for this project will be rare due to the cash requirements for the build and unless the build is desirable so they buy then move next door its a no go.

Would there be a market for a big house?
(once built what garden is left?)

Developers will be sitting on an empty house while the build happens.
(or cheap rental)

warby68

Planning adds value for developers but your interested parties have been domestic purchasers.

Planning could easily detract from value here due to the prospects of end property becoming mid terrace and the prospect of an adjoining build and the risk with that will put some off altogether.

Its very different to planning for a separate detached property when the land can be hived off and all parts funded and valued more separately too.

The fact the properties will adjoin puts you in two different and conflicting market places.

I'd discuss with whichever of your local agents sells the nearby building plots to see where interest might lie - it often tends to be a bit of a clique with certain agents and certain developers getting first dibs. You might find more demand for a big extension than for a new property. Tends to be the case with the semis with land round here - very large (and sadly ugly) extensions get built.

Why and for who was the planning originally obtained?

Albala

eddddy wrote: »

It's probably easiest (and most profitable) to start by selling the building plot to a developer.

Then, once the new house is built (and all the disruption is over), sell your current 2 bed house - if you can wait that long.

That's what a family member was advised, EA said people don't like buying a property if they don't know what may end up next door. I saw a property I liked that had a nice large garden, only at the end of the blurb did it say that part of it would be retained for the sellers to build a bungalow on. Having had relatives who found PP for a house next door was breached and a much higher (though still 2-storey house) was built, I didn't even bother to view the one for sale.

SmashedAvacado

Can you borrow the money to build the house next door - or find a builder who might partner with you to build the house and then buy the land from you / share the profits once it is built?
Do that, then you can sell both

The problem is that no-one will buy your house if they think someone else is going to be building next door - so to get the value out of the planning permission you need to build it or find a developer to buy from you.

Cakeguts

Find out what your house would sell for without the planning permission and that is what you will get for it. People aren't going to give you the price of a semidetached if what they are actually buying is going to turn into a mid terrace. Banks will not lend any buyer the price of this house plus the value of a building plot.

ProDave

It would help to know roughly where you are and roughly the value of the present house as an end terrace and the value of the plot.

Plenty of people do want to buy a plot for a self build house, but most doing that tend to want to end up with a detached house. I am guessing your plot is not big enough to make the new house detached, even if only by a couple of feet?

Search for he Build Hub forum which is mostly self builders, you may get more help there.

agrinnall

I imagine that the owners of the other 3 properties that are currently semi-detatched would be less than impressed at becoming part of a 5 property terrace, are you planning to offer them compensation from the profit you make to offset their devaluation?

foxy-stoat

I don't think the OP will be back - they didn't get the answers they were looking for.

Getting PP on a field does increase the value of the land....thats about it.

PP for loft conversion or rear extension won't cost that much anyway so won't increase the value.

AnotherJoe

How do you work that out Agrinnal?


For exampls if S=semi E = end terrace and T = terrace then it goes from
SS to ETE So the first S (not owned by OP I presume) is affected, it goes from Semi -> End Terrace.



Where are the other two semis?