Land development - where to start

larachrissi

My partner has been gifted a house and land by his parents. We have been living in it but it needs so much investment to bring it up decent we have been thinking about developing the plot instead. Its 4 bed detached on 1/2 acre in a great location for development but we have no idea where to start to even find out if it is viable, value etc - can anyone offer us any advice of who to go to? Where to go? Or just where to start? 

Keep_pedalling

Simplest thing to do would be to sell it and buy something that does not need a massive amount of work doing. Are your parents aware they may have a significant CGT bill to pay on transferring the property? 

thegreenone

Put it up for sale for developing but do a deal with the developer.  They get the land cheap but you get a brand new house.  We know someone who did this before anyone says it's not viable.  But you may have lots of neighbours.

Hoenir

Keep_pedalling said:

Are your parents aware they may have a significant CGT bill to pay on transferring the property? 

Potentially already incurred. 

Section62

thegreenone said:

Put it up for sale for developing but do a deal with the developer.  They get the land cheap but you get a brand new house.  We know someone who did this before anyone says it's not viable.  But you may have lots of neighbours.

0.5 acres is not a big plot of land for building 4-bed detached properties.  Giving one of them away in exchange for being able to buy the land cheap may well not be viable, depending on location and property values.  Viability depends on the specifics of each case, one person being able to do this deal doesn't mean another will be able to as well.

And everything else assumes planning consent would be given to develop the plot.

OP, how attached are you and your parents to the existing house... how would you feel if the developer wanted to demolish it to maximise the potential of the site?

larachrissi

Keep_pedalling said:

Simplest thing to do would be to sell it and buy something that does not need a massive amount of work doing. Are your parents aware they may have a significant CGT bill to pay on transferring the property? 

Thanks, I wasnt looking for simplest solution. Also they already paid the CGT when they gifted it, it was done at the time, I dont think its something that you can delay.

larachrissi

Section62 said:

thegreenone said:

Put it up for sale for developing but do a deal with the developer.  They get the land cheap but you get a brand new house.  We know someone who did this before anyone says it's not viable.  But you may have lots of neighbours.

0.5 acres is not a big plot of land for building 4-bed detached properties.  Giving one of them away in exchange for being able to buy the land cheap may well not be viable, depending on location and property values.  Viability depends on the specifics of each case, one person being able to do this deal doesn't mean another will be able to as well.

And everything else assumes planning consent would be given to develop the plot.

OP, how attached are you and your parents to the existing house... how would you feel if the developer wanted to demolish it to maximise the potential of the site?

Thank you, I wasnt set on 4 bed detached houses being built, I just meant there is one in situ with an additional 1/2 acre. The land next to us has been developed in the last 2 years, they demolished the existing detatched house and built 4 x detatched in its place, each of which have sold for £550k and that land is 75% size of ours. We are assuming this would make it easier with planning consent as they had no issues. We are not attached at all, his parents left it without maintenance for too long, its livable but needs a lot of renovating to make it worthwhile.

Section62

larachrissi said:

Section62 said:

thegreenone said:

Put it up for sale for developing but do a deal with the developer.  They get the land cheap but you get a brand new house.  We know someone who did this before anyone says it's not viable.  But you may have lots of neighbours.

0.5 acres is not a big plot of land for building 4-bed detached properties.  Giving one of them away in exchange for being able to buy the land cheap may well not be viable, depending on location and property values.  Viability depends on the specifics of each case, one person being able to do this deal doesn't mean another will be able to as well.

And everything else assumes planning consent would be given to develop the plot.

OP, how attached are you and your parents to the existing house... how would you feel if the developer wanted to demolish it to maximise the potential of the site?

Thank you, I wasnt set on 4 bed detached houses being built, I just meant there is one in situ with an additional 1/2 acre.

Understood.  My point was that generally plots of land with a dwelling on them typically end up being developed with something similar (just more of them), unless there has been a change of character in a local area.  In other words a road with 4-bed houses on largish plots is less likely to have one of them demolished and replaced with 10+ starter homes.

The land next to us has been developed in the last 2 years, they demolished the existing detatched house and built 4 x detatched in its place, each of which have sold for £550k and that land is 75% size of ours.

...which sounds like the kind of opportunity your plot represents.

We are assuming this would make it easier with planning consent as they had no issues.

Yes and no.  Planning rules change quite quickly and different factors can apply to different plots - even adjacent ones.  It does mean that planning consent is perhaps more likely than if the neighbouring plot had rounds of refused applications and appeals.

We are not attached at all, his parents left it without maintenance for too long, its livable but needs a lot of renovating to make it worthwhile.

In which case, the best thing to do is probably to start househunting for where you would like to live, and approach some local EA's for market appraisals on what your house+plot might be worth to a property developer as a 'clean' sale (i.e. no side deals).  Chances are they will know of developers looking for this kind of property.

Living on a construction site for a couple of years is no fun, and if you do a deal which involves them building a house for you on this plot then you will be tied in until they complete the project.

Unfortunately property development is generally less easy than they make out on the TV shows, for someone who has never done anything like it before it can be a tough business to be in.  Overall you'll likely be better off by maximising the sale value, then handing over the keys to the house and walking away well before the first digger arrives.

larachrissi

Section62 said:

larachrissi said:

Section62 said:

thegreenone said:

Put it up for sale for developing but do a deal with the developer.  They get the land cheap but you get a brand new house.  We know someone who did this before anyone says it's not viable.  But you may have lots of neighbours.

0.5 acres is not a big plot of land for building 4-bed detached properties.  Giving one of them away in exchange for being able to buy the land cheap may well not be viable, depending on location and property values.  Viability depends on the specifics of each case, one person being able to do this deal doesn't mean another will be able to as well.

And everything else assumes planning consent would be given to develop the plot.

OP, how attached are you and your parents to the existing house... how would you feel if the developer wanted to demolish it to maximise the potential of the site?

Thank you, I wasnt set on 4 bed detached houses being built, I just meant there is one in situ with an additional 1/2 acre.

Understood.  My point was that generally plots of land with a dwelling on them typically end up being developed with something similar (just more of them), unless there has been a change of character in a local area.  In other words a road with 4-bed houses on largish plots is less likely to have one of them demolished and replaced with 10+ starter homes.

The land next to us has been developed in the last 2 years, they demolished the existing detatched house and built 4 x detatched in its place, each of which have sold for £550k and that land is 75% size of ours.

...which sounds like the kind of opportunity your plot represents.

We are assuming this would make it easier with planning consent as they had no issues.

Yes and no.  Planning rules change quite quickly and different factors can apply to different plots - even adjacent ones.  It does mean that planning consent is perhaps more likely than if the neighbouring plot had rounds of refused applications and appeals.

We are not attached at all, his parents left it without maintenance for too long, its livable but needs a lot of renovating to make it worthwhile.

In which case, the best thing to do is probably to start househunting for where you would like to live, and approach some local EA's for market appraisals on what your house+plot might be worth to a property developer as a 'clean' sale (i.e. no side deals).  Chances are they will know of developers looking for this kind of property.

Living on a construction site for a couple of years is no fun, and if you do a deal which involves them building a house for you on this plot then you will be tied in until they complete the project.

Unfortunately property development is generally less easy than they make out on the TV shows, for someone who has never done anything like it before it can be a tough business to be in.  Overall you'll likely be better off by maximising the sale value, then handing over the keys to the house and walking away well before the first digger arrives.

Thank you so much for you input, much appreciated.

FreeBear

Section62 said: Unfortunately property development is generally less easy than they make out on the TV shows, for someone who has never done anything like it before it can be a tough business to be in.  Overall you'll likely be better off by maximising the sale value, then handing over the keys to the house and walking away well before the first digger arrives.

If you've ever watched Grand Designs, they have had some right corkers in the past. A lot of the projects going over budget, a few failing to finish, and one or two divorces along the way.