Selling to developers - any advice?(21 Posts)
It may be, in the near future, necessary for my neighbours and I to sell our houses and land to a developer. We're all meeting the head honcho in a couple of weeks and while I have experience negotiating, I have no experience in this field. Has anyone been on this position? Could you share any advice? TIA
If developers think it is viable they will throw money at you. I would get at least a couple of them to quote. Beware......with knobs on.
In your favour, the present planning laws have gone out of the window. The 'local Plan' is an effort by councils to find land for building to fulfill the governments need to produce more housing, disguised as concern for development. Even flood plains are getting planning permission.
If you live in the South I would get a quote from a builder who lives in and works in the North. The price for building land is around 30% of the finished product in the North and around 40% in the Midlands. Out through the roof in the south.
Lucky you.... If it comes off, and you can put a few houses on your land you will be very well off. Get a good solicitor.
When you say necessary, do you feel the developers are forcing your hand in some way? If this is the case, it might be worth getting togetherw ith your neighboursa nd hiring a n intermediary who will act on your behalf to get the best price.
Thanks Hole, really helpful. We're in the South, they have plans to develop in the fields surrounding us (flood plains incidentally) we think they can fit roughly 13 houses on our combined plot - there is talk of a gastro pub too. Hadn't thought about needing a solicitor - would this be for the negotiation stage?
Good idea to get out; the flood risk on your plot will rocket once the new developments go in.
make the most of this chance. And pity the people who will be living in those 13 houses. There's nothing you can do against insane planning policy.
Yes lala - we will be completely surrounded by a new development - 200 houses plus other amenities. Cracking idea to get an intermediary involved, hadn't even crossed my mind. Great advice, thank you
Special - our plot is ok, it's the surrounding fields which they will be developing which will err on flood risk land. Definitely time to get out though!
trouble is, once those fields are tarmaced over EVERYONE's flood risk goes up.
The developers are experienced people used to dealing with star struck sellers who are naive. You need a good Solicitor who understands your local property market so that you don't get done.
The developer stands to make big bucks, you need to make sure that you get some of the cash. Ask a local builder how much it costs to build a reasonably priced house, in the north it is around £160,000 in the South double. They are all made of cardboard now.
Any development over 10 houses will have to accommodate affordable houses. There are flood risk assessments but they are advice only.
Gawd I feel glad for you OP but sorry for the new house owners and the surrounding developments. Being flooded is the pits but no one can blame you.
Hadn't realised that special - I do feel fortunate to be in this position, but part of me wishes it wasn't all happening. This was meant to be our forever home and I'm struggling to imagine living anywhere else. It really is perfect on all fronts. But... It's a good thing and I can now legitimately mooch around Rightmove. Will look into getting a solicitor and intermediary Hole I think it's definitely a wise investment.
I know someone who sold their land for developing and they had a clause put in that any property that sold within 10 years of the developer taking ownership of it (regardless as to who sold the property) meant they were entitled to 10% of any financial gain made by the owner.
it's not good - stupid development has a lot to do with flooding, which is why Geldof-think of 'there's plenty of space to build in the UK' is so dumb.
but there is nothing you can do. It is very sad that this is happening but your job now is to look after your interest. Take them for every penny!
I'm not sure you'd be able to get a percentage of the increased future sale price of any property seeing as there'll be so many and the Developer will be selling on as soon as they're completed.
The crucial point for me, seeing as though this seems inevitable, is whether or not the development can go ahead without the acquisition of your and your neighbour's properties?
Yes Enrique, they could potentially go ahead without buying them, although I'm pretty sure having the gastro pub is a sweetener in getting the locals on board. The last thing we want is to be surrounded by building works as we've been too demanding.
Having just done it, you need to be in it for the long haul. We first signed options three years ago and it has taken this length of time to get planning permission.
During this time you would want to improve your home as it is going to be knocked down, you won't be able to sell. It has been a very long three years.
Most common agreements are value of property at the time of purchase plus a set uplift of £X thousand,
Oh yes the developer will do this all the time they will have set terms. You are highly unlikely to be able to add any clauses etc.
I'm being completely nosey here but did your story recently hit the press?
Lonecat yes, I'm pretty sure it will be a long drawn out process. Will be pleasantly surprised if it happens quickly!
Lizzie nope, not us. Can imagine this sort of thing is happening all over the place at the moment!
I was hoping you were in position of land known as a ransom strip. That would've been handy.
Seeing as they could potentially proceed without your properties, you're not in quite such a strong bargaining position, unless of course, their planning permission is dependent upon the provision of facilities that would be hard to provide without your land.
You need expert advice, because your homes are going to be less desirable once building starts and when it's finished. Take the advice and also do your own homework working backwards from where you'd like to move to next.
I know someone who sold part of their land to a developer and thought they'd done ok at the time, but years later when they came to sell, no one wanted to buy their house with the amount and shape of the land they had left and the money they'd had from the developer seemed very trifling.
I wonder what level of flood plain your land is on. There is a Government Commission meeting soon to consider the floods of Dec 2015. The deadline for submissions is the 15th of this month.
Hopefully ( not for you Op) they will make recommendations that prevent building on flood plains. Or at least that they demand that flood Resiliant measures are part of the build. Although similar commissions and investigations ( Pitt)didn't seem to achieve a lot.
It costs around £30,000 ( depending on the size of the development) to get to the planning stage, so that affects the builders. They have to produce a report stating where the runoff is going to go. They also need a report from highways and companies that deal with sewerage and the EA. Water dispersal from the site is not supposed to affect others. Ha!
However, The government are absolutely determined to build more houses. They are making it easier in their haste.
It is possible to build flood Resiliant houses on flood plains. Baca ( architects) build on water.I consider all houses built from now on , should be flood resistant as quite a lot of the UK is under threat.
Anyway, you are going to do this OP and anyone in your position would go ahead. Just make sure you get a good solicitor as I said. Hopefully the builders will build flood resistant homes and the selling price will reflect the fact that they are in danger of flooding. Just make sure you are long gone.
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