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ric1982
Posts: 222 Forumite
Hi,
I was wondering how realistic is it for people who has no experience of construction (or creating extension or loft conversation) of buying a house with large back garden (for e.g.) with a view that one day you could create a second house on that land and sell it.
I know its possible and it have been done. But it prob. cost lot of money to build house. There is also hassle and getting planning permission from council.(I don't know what is the possibility that you dont get that permission).
So if a house is priced with view of having large land but very average amount of living space (i.e. build area). Is it good idea to go for it (with above mindset)? This is because the first thing that come to mind is that 'its good investment because its got extra land ...'
Thanks
I was wondering how realistic is it for people who has no experience of construction (or creating extension or loft conversation) of buying a house with large back garden (for e.g.) with a view that one day you could create a second house on that land and sell it.
I know its possible and it have been done. But it prob. cost lot of money to build house. There is also hassle and getting planning permission from council.(I don't know what is the possibility that you dont get that permission).
So if a house is priced with view of having large land but very average amount of living space (i.e. build area). Is it good idea to go for it (with above mindset)? This is because the first thing that come to mind is that 'its good investment because its got extra land ...'
Thanks
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Comments
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Can you afford the build costs for a second property in the grounds of the house?
Can you also afford all of the associated costs? Architect, planning etc.
Although the land may be big enough for another house to be built, is it practical? i.e can you construct a separate entry route? This isn't essential but could help with planning.
You can always approach the local planning authority for pre-application advice. You will probably have to pay for this, but they will give you a steer on whether such an application would be granted. Obviously, if you're looking years down the line the advice would probably no longer be valid.0 -
Will depend largely on the area and local policies. Many places have specific policies against new houses being created in back gardens (would both houses have decent sized gardens, adequate access etc).0
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The current owners would undoubtedly be aware of the possibility of building a second house on the land and would set the price accordingly.0
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Just going through the process to build second house on plot for our son. We live in a built up area and have owned original plot for 30 years. Planning permission took 20 weeks. You have to have structural engineer's calcs, thermal calcs, water usage calcs for building regs. In our circumstances we had to pay council highways for giving cost of dropped kerb and construction. To meet thermal regs we have to put solar panels on the roof. Will also require air pressure test when built.
It's not as straight forward as you think and is very expensive. With architect fees. council and various other fees it has cost us £20000 to date. Thank goodness we didn't have to buy the land but with the price of local housing it will be cost effective. The guy down the road demolished a detached house, only a few years old and has built two detached in its place, the vast recent property price increases have made it more viable even though many new estates are being constructer in the locality.0 -
The current owners would undoubtedly be aware of the possibility of building a second house on the land and would set the price accordingly.
Undoubtedly? I don't think so. It's certainly possible, it could even be probable that people have considered it, but most houses with a large amount of land won't meet the criteria for building a second house on the plot, so it isn't easy for people to know whether the potential is truly there or not.
We have permission for a second house on our plot. It took considerable effort but didn't pay any more for the house. Even if vendors think there is potential, then there is likely to be an uplift clause in the contract should the buyer obtain permission, rather than £000s on the asking price. Even keeping half the value of the uplift in value is better than nothing.Everything that is supposed to be in heaven is already here on earth.
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You can get an idea of how realistic it is by the number of people doing it: other than Rachman-esque slumlords & "beds in sheds" that sort of plan doesn't feature too much on property & DIY type TV programmes - I can't speak too much about the lower end of the scale, but certainly those on Grand Designs don't appear to be complete [STRIKE]numpties [/STRIKE] amateurs.0
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So if a house is priced with view of having large land but very average amount of living space (i.e. build area). Is it good idea to go for it (with above mindset)? This is because the first thing that come to mind is that 'its good investment because its got extra land ...'
In my experience, what tends to happen is that any house with a large, vaguely suitable garden is advertised as having "Development Potential (Subject to Planning Consent)" - and is advertised with a guide price.
The EA phones around all the small-scale builders/developers on their books. If the developers feel there's a good change of getting planning consent, they often end up offering way over guide price (but less than they would for a plot with full planning consent already granted).
So you could ask all your local EAs to add you to the list of people interested in houses with development potential.
But you might be competing with more experienced people, with deeper pockets than you.0 -
Garden plots probably make up a significant proportion of self build plots. You either have to buy so cheap you are not out of pocket if you cannot get PP (or cannot build for some other technical reason) or if you are paying a premium, be sure you CAN build.
The best example I know is someone who had a semi detached house with a 3 metre wide side garden. One day his neighbour with a similar side garden offered to sell it to him as the garden was too much to maintain, and he bought it for a song. He then got PP to shoe horn a small detached house into the 6 metre wide plot.0 -
If you buy the original house and land with a mortgage, you will have to get the lender to consent to "release" half of the plot (and therefore some of their security) for the new build.
Also you will need to split the title at Land Registry so that the new build has its own title number.0 -
Our neighbour tried to get planning permission for a house for his son in his garden (about 4 acres) and it was never granted. Plenty of room for access too.0
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