How to value plot of land in Urban area and options afterwards

phill99

If it is in London, it is highly likely that it would be valued assuming that pp would be forthcoming. Any land sold by public bodies (unless its what is known as a 'special interest' buyer) has to be seen to be getting the highest value. So it would either go to auction or for sale by tender.


In the text book scenario, without PP it would be classed as garden land or amenity land. Lets say that is worth £10k. But the council as well as local builders etc know that pp is highly likely to be granted and therefore it would have to be valued that way and therefore you would be looking at say £200k to £300k .


So start saving.

Iperson4

phill99 wrote: »

If it is in London, it is highly likely that it would be valued assuming that pp would be forthcoming. Any land sold by public bodies (unless its what is known as a 'special interest' buyer) has to be seen to be getting the highest value. So it would either go to auction or for sale by tender.


In the text book scenario, without PP it would be classed as garden land or amenity land. Lets say that is worth £10k. But the council as well as local builders etc know that pp is highly likely to be granted and therefore it would have to be valued that way and therefore you would be looking at say £200k to £300k .


So start saving.

Thanks for your response

diggingdude

if the almost impossible should happen and you get that land be awear the council will likely put an uplift clause onto it

lincroft1710

At 2.8m wide these Victorian houses are going to qualify for some of the narrowest houses in the country! Current single width park homes are considerably wider.

Valuing an undeveloped parcel of land in London with street frontage will depend firstly on whereabouts in the capital it is situated, secondly its size and thirdly will no doubt attract "hope value" (the hope and expectation that planning permission would be forthcoming for its development).

If the council own it, I would be wondering why haven't they developed it or sold it on for development. Is it contaminated land?

eddddy

Iperson4 wrote: »

So is there no rule of thumb or anything to value plots without planning as getting a surveyor to value the plot at a very initial stage when working out potential costs when viewing would be a waste of money.

The 'rule of thumb' used to be:

• Take the expected value of the property to be built
• Expect to pay one-third for the plot
• Expect to pay one-third for the build cost
• Expect to make one-third in profit

But with rising property prices, maybe plots now sell at 40% to 45% of the expected value of the property to be built.

If a piece of land doesn't have planning consent, a developer will take a view on how likely it is to get consent (best case and worst case scenarios), the cost of getting consent (maybe £10k+++), and the time it will take to get consent.

Iperson4

lincroft1710 wrote: »

At 2.8m wide these Victorian houses are going to qualify for some of the narrowest houses in the country! Current single width park homes are considerably wider.

Valuing an undeveloped parcel of land in London with street frontage will depend firstly on whereabouts in the capital it is situated, secondly its size and thirdly will no doubt attract "hope value" (the hope and expectation that planning permission would be forthcoming for its development).

If the council own it, I would be wondering why haven't they developed it or sold it on for development. Is it contaminated land?

I don't think it's contaminated as on both sides there are properties and is situated on a quiet residential road and doesn't seem like it was historically an industrial road. I personally just think its been forgotten about, but probably by the time I can afford it (I thought it would be around 100k without pp but was mistaken) something might happen to it

Gribbit789

You sound utterly out of your depth.

You can’t build a house in 2019 to Victorian specifications. There are building regulations!

Local authorities will only sell land to a preferred vendor if they are a housing charity who in turn supply the LA with a fixed quantity of low income housing. Other than this council assets are sold at auction for total transparency.

Davesnave

Gribbit789 wrote: »

You can’t build a house in 2019 to Victorian specifications.

Well, you probably can, but not the sort that had a lavvy in the back yard serving 6 properties and single skin walls!

Some people, it seems, are hell-bent on dragging us back to that. Who knows what's in store for London and its surrounds in brave, new de-regulated Britain?

ethank

You'll probably find it will be unviable to build it.

Iperson4

Gribbit789 wrote: »

You sound utterly out of your depth.

You can’t build a house in 2019 to Victorian specifications. There are building regulations!

Not really, modern interior, victorian facade, it's in a conservation area so it's a good option. It seems many of you people have never seen properties in inner London! If it were outer London, I'd say you've got a point, but this isn't the case.

Gribbit789 wrote: »

Local authorities will only sell land to a preferred vendor if they are a housing charity who in turn supply the LA with a fixed quantity of low income housing. Other than this council assets are sold at auction for total transparency.

Just saying, you should see Greenwich borough and how they're planning on selling a plot to pocket living with minimal affordable housing, so there are various cases depending on the local council
I'm not really sure why some of people are being rude when questions are being asked, it's not like any of you are any better. I've seen schemes like this many times, but it's my first time starting from scratch.