Developer interested in buying my property

Jonboy_1984

We have a few care homes with circa 20 beds round here, they typically only have around 8 parking spaces on the basis of a few for staff and a couple for visitors. They often seem half empty….

We also have a strip of 6 or 7 manky old single storey shops that back onto an almost new shopping centre. The new shopping centre owners originally wanted to acquire them and integrate the land into the shopping centre. The various shop owners over-estimated their value and didn’t know when to fold, and the developer walked away and drew up new plans…

zagubov

Jonboy_1984 said:

We have a few care homes with circa 20 beds round here, they typically only have around 8 parking spaces on the basis of a few for staff and a couple for visitors. They often seem half empty….

Having worked in a care home I have to say the number of visitors needing parking spaces can be dismally low as most families seem to neglect their elderly relatives and fail to see much need to visit them. 

GDB2222

user1977 said:

ThisIsWeird said:

If you check the Planning Portal of your LA, I'd have thought that the proposed development would be shown there - an outline proposal at least? I mean, the developers will have a good idea of what they wish to achieve, including what will be sitting on your plot.

The developers won't be daft enough to submit a planning application before they know whether the land is available! And even if they had, the OP would have had notification of it anyway.

But on that point, I would bear in mind that any offer is likely to be conditional on them getting planning - so if you end up tied into a contract for a couple of years (i.e. unable to sell to anybody else), and which possibly never completes, what's that worth?

It's this, really. You will effectively be signing a conditional sale agreement now, for completion in say 2 years time. The developer can decide not to proceed (because they don't get the planning permission they want, or because costs go up), but you will be bound by the agreement. That means not being able to sell to anyone else or move, even if your circumstances change. 

I do wonder how keen your neighbours will be to sell when they find out that they are not really selling now, but in two years time?


It's a terribly one-sided agreement to sign, and the developers often give an incentive to sign it. That might be 5-10% of the sale price, paid as a lump sum that you get to keep even if the sale doesn't proceed. 


House prices may rise over the 2 years, so what looks like a good price now may look like a terrible price in 2 years time. You could negotiate an indexation clause. 


You might want to negotiate a clause whereby the developer has to complete on your home before work starts elsewhere on the site. Otherwise, you could have months of ground works to put up with until they actually need to knock your house down. 

Dogz111

There is no harm in opening dialogue with the developers and see what they have to say.  If you do decide to progress then you need to work together with your neighbour if you want to get the best price for your properties.  You need to act together and agree behind closed doors how you progress and what you both consider a fair price to be.  

Any price you agree needs to take account of the massive upheaval involved in moving plus all the associated costs such as legals, surveys as well as a massive inconvenience factor etc.  You might also have a mortgage which is on a super low rate which can't be ported so I'd also be factoring this in as well.  I'd agree this price and have it as the low point you will accept upon.  My opening gambit would be cheeky and high as negotiations only go down.

I wouldn't try and guess what they are willing to pay as their business case is probably built upon multiple years cash flows from the care home operations.  Any price you agree on, you need to feel like you have a good deal

They will want to buy both properties as converting a semi into a detached will add a load of development effect and legal bureaucracy which they will want to avoid.  The Party Wall Act will come into play here (as mentioned before) if they just buy one - this is not an area I know much about but the Act is to protect your property from impact which can also include noise and pollution of any development

Given the developer has approached you, I would have thought conversations will have already been had with the council and in principle will possibly be approved

Best of luck!!!