What value does planning permission add ?

wdw13

PasturesNew wrote: »

7% + cost of the plans/permission would be:
(220*1.07)+1500 = £237,000

Cheers - we couldn't reconcile how the asking price had jumped so much, looks like they are just chancing their arm.

Will re-do our maths and re-think our offers on the much more sensible figures quoted.

PasturesNew

The bottom line is: it is unlikely anybody will pay anything like that for the pleasure of having the permission. In fact, you could even think that you're stuck with his poor choice/taste/vision.

When he bought the house, the housing market was doing one thing.
Now it's doing another.

The credit crunch will mean there are less people able and willing to take on a large loan and the thought of an extension.

I doubt he'll have a rush for it in the next couple of years.

ds1980

Planning permission on land for houses or flats will add thousands.

40% roughly - ie plot of land £100,000, plot of land with planning permission £140,000. Very roughly this could be a lot more. Arable or greenbelt sites where they sell of individual plots cheaply in the hope that in 50 years this government will allow them to concrete over them will obviously return more.

I had an agent the other day saying that because there was potential then the house was on for more. I told him he was talking out of his proverbial as you could n't have built another house on to the side. He mumbled a reply and we havn't spoken since....his loss.

Doozergirl

ds1980 wrote: »

Planning permission on land for houses or flats will add thousands.

40% roughly - ie plot of land £100,000, plot of land with planning permission £140,000. Very roughly this could be a lot more. Arable or greenbelt sites where they sell of individual plots cheaply in the hope that in 50 years this government will allow them to concrete over them will obviously return more.

Can we just clarify that you are talking about land for new dwellings, not extensions.

The value of a house does not increase with planning permission for an extension. The land value shoots up when land which was designated for another purpose gets planning permission for housing - as different types of land have different values; housing obviously having the highest value. As there is already a house on the plot, the value of the land doesn't change with PP for an extension.

silvercar

A house near us which is a run-down 3 bed detached on a large plot on a road with mainly 5 bed houses just went for about an extra 200k because it has detailed PP for a 6 bed 3 bath house.

For anyone buying it they will probably end up paying 100-200k less than if the house was already built by the time they have done the rebuild.

All helped by very few houses on the market in a small area.

wdw13

The planning permission is to extend the existing property only.

No additional houses can be built on the land and the existing house will be extended, not demolished and rebuilt.

Thanks for the replies everyone.

ds1980

Doozergirl wrote: »

Can we just clarify that you are talking about land for new dwellings, not extensions.

The value of a house does not increase with planning permission for an extension. The land value shoots up when land which was designated for another purpose gets planning permission for housing - as different types of land have different values; housing obviously having the highest value. As there is already a house on the plot, the value of the land doesn't change with PP for an extension.

exactly right