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I just spotted an excellent opportunity for less than 30k - a plot without PP. And it has not sold at recent auction. From auctioneer I know that vendor is willing to sell at the reserve price. I am not sure if the vendor would enter an assigned conditional agreement (I'm in Scotland) as possibly he was looking for a quick sale at auction. I may make a fool of myself, if I asked him this. What do you think? If I wanted to buy outright, I've no 30k spare to put in one basket, so would need a bridging loan or similar finance. How would finance for such plot look like and how much cash I would need to put in? From planning point of view, I will be phoning local planners to see what they would allow. The plot is very close to 500k-600k detached houses and very likely to get planning permission for at least two houses. Then I could sell land for profit or, more likely, build myself. Any advice would be appreciated. I am particularly interested in what Trevor has got to say. I bought your Land Profits System yesterday, but its not arrived yet :-) Therefore not sure how to approach the deal. Thank you, Paul

Paul

I am sure Trevor will give you good advice, but here's mine for what it's worth. I would not ever ever buy any land like you are describing without PP outright. Don't know what the law is in Scotland but here in England you would ask for an option to buy within a specifed time at an agreed price. Then you could apply for PP and if granted exercise your option to buy. Remember the land is only worth the money if it has PP that's why it did not sell at auction.

Richard Mews

 

 

Richard,

 

I spoke with he auctioneer today and he said the land is now for sale for £25k and it is a distressed sale. Therefore, I do not think I could enter into any option agreement. I am afraid that this sale may be concluded shortly and I may lose out. The auctioneer said the plot is in a residential area and PP would not be a problem. I know that I should not trust them. Even if local planners tell me that development is possible then, when it comes to actual PP application, it may be refused for whatever the reason. So it is more like a gamble, and gamble is not quite a dilligent way of investing. I reckon potential value of this land may be at least £250k if PP granted, but on the other hand the risk is significant, even if I hired Trevor to do that for me. Maybe the right thing to do is to wait and if the vendor has no offers, then approach him with an option. Hope Trevor will share his thoughts on this.

Paul

Yes it might be better to wait. I don't know the planning laws or procedures in Scotland but the first thing I would do is talk to the planners and see what they will or won't allow on the site. Then you will have a clearer picture. You will also have to ask them if they require detailed plans or would they accept an outline application. Detailed plans can cost a bit of money. Whatever you do, do not take the auctioneers word that PP would not be a problem. They are not planners. I can see you getting this between £15-£20k. Your option route is the best one as it is less risky than outright purchase without PP.

 Richard

 

Have you carried out a search on the council's website or visited the planners office to see if there has been a previous application for the site?.....You could arrange a meeting with a planning officer for pre-application advice as to the likely chances of P.P. or reasons for refusal, although even then a definite answer is unlikely to be forthcoming....find out what the development plan policy is for the area.... If you then think you'd still have a chance of success, it may be worth contacting a local planning consultant to do an initial appraisal which shouldn't cost much.

This sounds a bit pessimistic but I can't understand why this plot hasn't been snapped up if it has the potential you say but it may be worth a punt providing you carry out the necessary D.D.

Best of luck......Bill

 

 

Thanks for all the advice. I phoned local planners today regarding the plot. They knew which one I was talking about straightaway. It is in the greenbelt and is being sold by the farm owners nearby. The only permitted development would be agricultural, i.e. barns, stables, cattery etc. That's all they had to say.

Paul !

Sorry - I've only just noticed this thread.

Green Belt is a total hiding to nothing for housebuilding unless the dwelling is for the essential needs of agriculture, forestry, or some other business demanding a rural location and justifying a 24/7 on-site presence.

Hopefully you have since read The Land Profits System and reached the right conclusions yourself before consulting the local planners. (I don't ever consult them, incidentally. Central Government recommends it in the form of pre-application discussion, but 20 years experience has confirmed that you cannot rely on a damn thing they say ! Even if you get their "advice" in writing, there will be a paragraph near the end of the letter indicating that this is officer level advice and the members may take a different decision - meaning that their advice is worth nothing!)

There has been much talk by government Ministers and ex-Ministers (Prescott in particular) about allowing building on Green Belt and reducing land so designated. (So-called "landbanking" companies flogging "plots" hype up that talk as if it is all about to happen.)

In fact there is currently FAR more Green Belt than when Labour took office in 1997 and that is unlikely to change. The only time land can normally be taken out of Green Belt is where the planning authority is otherwise unable to supply sufficient land for housing needs.

So .... my advice is, if you want it for housing, don't touch it with a bargepole. And the price is ludicrous.

"Don't know what the law is in Scotland but here in England you would ask for an option to buy within a specifed time at an agreed price"

 

Richard :

Way back in the early 1990's I got our Solicitors to approach well-known Scottish solicitors Maclay Murray & Spens in Edinburgh to draft a Purchase Option Agrement for us for land in Scotland.

 They produced one .... and it ran to 14 pages ! And if that wouldn't put a landowner off, I don't know what would ! Evidently for Scottish land a purchase option must include ALL of the terms of the sale contract in the event that the option is exercised.

A Conditional Contract is far simpler and just as effective for the objectives we are talking about.