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flatlander
Premium Member Joined: 01 Mar 2012 Status: Offline Points: 1147 |
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Posted: 15 Oct 2015 at 13:25 |
If you were buying a house with land would a development clause on the land put you off 20% for 5 years dropping to 15% for the following 20
And if so why? |
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"Si me dices ven lo dejo todo ... pero dime ven"
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redratbike
Moderator Group The Collector Messiah Joined: 07 May 2008 Status: Offline Points: 16146 |
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so is this if you develop on the land you have to pay the 20% or 15% of the increase property value of what ever it is you build for yourself ?
or only if you develop and sell so do you pay if change of use from say agricutural land to something with planning permission all of a sudden the cost of the land is worth more ........ but you dont build for years but still have to fork out the 20% or only fork out the 20% when you come to sell take a good look and take legal advice if possible but utimately if the house is a goer go for it..but if you sell the land to a developer for the money just think what could be built next to you
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flatlander
Premium Member Joined: 01 Mar 2012 Status: Offline Points: 1147 |
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It's me selling it unfortunately :( I could stay here forever but IVF isn't free despite what the papers say and we have one or two more goes left ... In the bank so to speak. Put on sale on Saturday got two offers one accepts the clause the other doesn't the ones that don't have some local knowledge ie they work at a place next door that would have an interest as they've just expanded up to the edge of the land.
Me being cynical thinks hmnnn do they know something I don't I prefer to have the clause as the offers are pretty similar otherwise and because of where it is it would be reasonable to expect it to be developed at some point We are thinking that a clause for an uplift in the values should it change from agricultural use |
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"Si me dices ven lo dejo todo ... pero dime ven"
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redratbike
Moderator Group The Collector Messiah Joined: 07 May 2008 Status: Offline Points: 16146 |
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can you not seperate the 2 and sell seperately?
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davidrsurfer
Premium Member Joined: 22 Feb 2011 Location: North Devon Status: Offline Points: 2511 |
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Presumably you bought with the clause in place & it didn't stop you. But I would make a challenge against it to see if it actually stands up. Selling without it would be easier & more profitable.
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flatlander
Premium Member Joined: 01 Mar 2012 Status: Offline Points: 1147 |
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It's mw tha wants t put the clause
I have a good offer of a neighbour for just the land and could then sell the house which has planning to make it a 5 bed house and try to keep the garage which I would then try to get planning in for another house ... Its a big garage :) Old farm house |
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tdesnos
Moto3 racer Joined: 03 Sep 2015 Location: Nottingham Status: Offline Points: 63 |
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Not really, if the house is decent sized, not in an area where house prices are held up by prospective developers (presumably wont be, as they'll likely be clauses on other houses in the area rather than exclusively your own)
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A303
Premium Member Joined: 15 Jul 2008 Location: Wiltshire Status: Offline Points: 1227 |
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Sorry but I think these value uplift covenants are just sheer f**king greed. Sell the property for what you think its worth or spend your own money developing it to its maximum potential - don't sell it then wait to profit even more off the back of some other poor bastard's sweat and investment. You either own the land or you don't.
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legend88
Premium Member Joined: 18 Aug 2013 Location: Newcastle Status: Offline Points: 6597 |
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You could invest in getting some plans done and get the planning permission then that way create the uplift in value yourself. Then sell either as a whole with the planning in place or as separate lots.
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flatlander
Premium Member Joined: 01 Mar 2012 Status: Offline Points: 1147 |
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Actually not that straight forward as the land is currently agricultural use which in reality it means getting it included in a local plan to have the change as a change if use, unless you use one of the loopholes, is unlikely unless you are a serious developer with access to council policy makers.
I could sell it to travellers at a multiple of its value as is as they pay more than its current worth bit prefer to go another route. Personally ... And having bought land with restrictions in it, I'm not bothered about the idea of a cost being potentially involved as its just factored in. And if I make a million I wouldn't mind paying. A percentage as its still would leave a sizeable chink. In this instance the council have allowed development against planning rules next to the land in question and one of the potential buyers gas access to information I do not. They greed aspect is a personal view I suppose but rightly or wrongly its a common enough occurrence and I'm not quite sure how making a moral stand and turning down a potential windfall would probe I was at best naive at worst stupid is me being motivated by greed its a business decision which is applied to a personal purchase |
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flatlander
Premium Member Joined: 01 Mar 2012 Status: Offline Points: 1147 |
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Thanks for all the input we accepted the offer that was lower but had the clause in it
If it works great if not it will have been worth a punt for Theo's future nest egg |
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"Si me dices ven lo dejo todo ... pero dime ven"
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redratbike
Moderator Group The Collector Messiah Joined: 07 May 2008 Status: Offline Points: 16146 |
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flatlander
Premium Member Joined: 01 Mar 2012 Status: Offline Points: 1147 |
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About 3 miles away my old house so that we can sell that too may be able to go back to Spain
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"Si me dices ven lo dejo todo ... pero dime ven"
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