Property Developers

JBeaC

I’m interested to know the pro’s and cons of selling to a property developer? We’re getting a former family home ready to put on the market (early July) which also needs to go through probate. We’ve had several valuations all very positive about the potential for sale to cash buyers because of its situation and sought after location, however one has suggested the planning potential should be looked into for future development. Before I’m lead along this path by the estate agent I’d really appreciate some insight. We do want a quick sale bearing in mind we can’t sell until probate is completed (approx 8 weeks).

user1977

Not sure any of us can provide insight without knowing more about the specific property, but if there's potential for an uplift in value after planning you probably don't want to let it go too cheaply. You might want to get advice from agents more used to dealing with development sites. But a sale subject to planning will stretch things out a bit. Do you need a quick sale?

JBeaC

Thanks for this. Ideally a quick sale due to market buoyancy and stamp duty but we also have probate to wait for aswell. We’d prefer not to sell to developers but just want to weigh up for and against. 

Countrysider

JBeaC said:

 however one has suggested the planning potential should be looked into for future development. 

How did the agents suggest you benefit from the planning potential exactly?
 
The two options seem to be either apply for planning yourself or attach an uplift clause to clawback money after purchase if the buyer applies for planning. 
 
The former approach would take time and the latter approach would constrain the pool of willing and able buyers. 

How did the agent frame this discussion? I'm genuinely curious for a similar situation with a house i'd like to purchase

JBeaC

They recommended that the planning potential of the site be fully explored before marketing to determine if there is any development potential. They have offered an informal visit/ discussion with a planning consultant they know. They haven’t actually explained the benefit to us. I want to my some research before discussing with them any further. 

user1977

Countrysider said:

JBeaC said:

 however one has suggested the planning potential should be looked into for future development. 

The two options seem to be either apply for planning yourself or attach an uplift clause to clawback money after purchase if the buyer applies for planning. 

More likely a developer would want to enter into a conditional contract and then complete if/when they get planning - they won't want to be stuck with a house they can't develop.

JBeaC

The former approach would take time and the latter approach would constrain the pool of willing and able buyers. 

Thanks this is helpful 

user1977

JBeaC said:

They haven’t actually explained the benefit to us.

The benefit would be a higher price if it's worth more to a developer.

badger09

You mention Probate, are you Executors? If so, you must act in the best interests of the estate's beneficiaries. That might mean a quick sale, but not at the expense of a big uplift in sale proceeds.

JBeaC

Yes we are executors with beneficiaries to consider. 

badger09

JBeaC said:

Yes we are executors with beneficiaries to consider. 

Have you actually applied for Probate yet?