Property Developers

JBeaC

Just signed the paperwork to get it rolling 

badger09

JBeaC said:

Just signed the paperwork to get it rolling 

So how did you value the property for Probate purposes?

JBeaC

badger09 said:

JBeaC said:

Just signed the paperwork to get it rolling 

So how did you value the property for Probate purposes?

Thanks but how is this relevant to my question of the pros and cons of selling a property to a developer? 

badger09

JBeaC said:

badger09 said:

JBeaC said:

Just signed the paperwork to get it rolling 

So how did you value the property for Probate purposes?

Thanks but how is this relevant to my question of the pros and cons of selling a property to a developer? 

My apologies. It is not relevant to your question. 

Such is the nature of fora like this, that discussion often widens from the original question, and raises issues which the OP may or may not have considered, but nevertheless,  finds useful. Apparently, that is not the case here.

rebs

We completed our house sale to a developer in Autumn 2020.  Not a quick process at all - we were first approached by them with an offer in June 2018.  It then took a while to the get the option agreement finalised and contracts exchanged - that took place in July 2019.  They then applied for and were granted planning permission and we finally completed on the sale in October 2020.

For us, the pros were that we got a bit more for our property that we believe we would have if selling on the open market - not a vast amount more, but enough to get us moved to where we wanted to be.  We didn't have to pay estate agent fees or shell out to get our house into selling condition (it was a bit shabby) and we also didn't have the hassle of having to deal with viewings/offers etc.

The cons were the time it took from start to finish and perhaps the uncertainty along the way - they could have backed out at any point and we would have been back at square one.

JBeaC

Really helpful thank you! 

eddddy

There are different options including...

Market it as a property with "Development Potential" at a guide price, with an informal tender / sealed bids

• Each developer will assess for themselves what they can do with the property, and put in an appropriate offer.
• (I looked at a property with development potential with a guide price of £300k, it went to a sealed bid of £361k)

Sign a "Conditional Contract" or "Option Agreement" with a developer

• The agreement is that they'll pay £x, if they can get planning consent - but they walk away if they can't, and you have to put it back on the market.
• The developer pays all the costs of getting planning consent (if the plan involves building new house[s], that might cost £10k or more)
• The developer might want the contract to last up to 18 months - because it could take that long to get a planning decision, if it goes to appeal. So you might be waiting 18 months for the money, or until you can put the property back on the market

Get planning consent yourself

• That might mean the property sells for more
• If it's detailed planning consent for a new house(s), that might cost £10k or more - or less if it's outline consent

JBeaC

Fabulous thank you!