Sell house with planning permission or sell plot separately

jamieboot

Hi there. We have a 1930’s semi corner plot and have been granted outline planning (all matters reserved) to
build a 4 bed detached house on the side of the plot, which will be worth around £400k

This will involve demolishing the side extension of
our house (housing the kitchen) and returning our house to its original footprint. 

Having spoken to some land auctioneers I think that we could
get around 150k if we sell the land with planning permission, but would obviously need to spend money demolishing the side extension, landscaping and moving the kitchen back inside (20k?)

I am trying to decide if I am better off doing this or selling the
current house with planning to a developer/builder and having them do all the work.

*Current house as is with side extension worth circa £375k
*Current House taken back to original footprint on smaller plot circa £330k 

How much do you think I could get selling the house with planning? 

I guess I will make less this way but more likely to find a buyer as if splitting plots may be difficult to sell current house due to proposed building works on side plot?

Any other things I should think about? 

thanks 

Jamie

user1977

Have you asked any agents for their opinions? As you say, selling the existing house may be troublesome with the building site next door.

ProDave

Sell as a whole.  Very attractive to a self builder to live in the old house while building the new, then sell the old house.

With such a rare opportunity, why don't you want to do that?

jamieboot

Thanks Pro Dave- yes this is what I am thinking, although quite ready to sell yet.  Any idea what the value of the house with planning would be based on above info?

eddddy

Would you consider selling the plot, but continuing to live in your current house until the new house is finished?

You'd have the inconvenience of construction going on next door, but your house would be more saleable once the new house is finished.


Plus you could make it a condition of the sale, that the builder/developer who buys the plot has to demolish your extension, landscape, and re-install your kitchen (according to precise plans - maybe drawn up by your architect).

That might work out more cost-effective than hiring your own builder to demolish the extension, landscape and re-install the kitchen.

Standingstrong

Sell the plot and then if you want to stay.. maybe sell after 12 months 

youth_leader

My friend sold the land behind her house before she sold the house, and had a hellish time because of the 'drains'.  Do make sure access etc is worked out and double check all measurements if you take this route. 

Slinky

It could be that whoever buys your house doesn't want to do what you've planned anyway.

We looked at a house where the owner had planning permission for building another house on the plot. The vendor asked if we wanted to look at the plans, we said we weren't interested in building on the garden. We didn't buy that house, have been back past it since it sold, and in 5 years the purchaser hasn't built either, so looks like they were also not keen. Must have delighted the neighbours in the close who all objected to the permission being granted in the first place (I looked online at the application).

If you do decide to stay in the house and sell the plot, can you make it a condition of sale that the new house is completed in XX time, otherwise if market situations become markedly worse, the developer may pause their project, and you could be stuck in the old house for years.