Can we make money from our neigh ours building plans?

[fartyface]

We were considering putting our house on the market and planning for a valuation when possible.

Yesterday we found out that the 2 neighbours on one side have applied for planning to knock down their large victoriana style homes to build 5 houses. 2 five beds at the front, and 3 3or 4 beds at the end of their gardens.

This now opens up the possibility for us to build something at the end of our garden. We could probably fit a large family home in too.

We wanted to move by Xmas if we were moving but there is some potential here isn't there?

Does anyone have any experience of this sort of thing?

I think it depends on location, 5 houses is a lot.

Some neighbours of my aunts did this on their London street. They have extra long gardens with nothing at the back so some built houses at the bottom and sold them.

You need to speak to a planning consultant or at the very least speak to your local planning Authority and see if you can get a pre application meeting ( this will indicate whether the proposal would get planning) . You have to consider the building costs, all the reports that will need to be completed, often pre planning. The effect it will have on your property in valuation and future sales. How it will effect your neighbors who are not involved and the inconvenience to them. Good luck

Honestly it will take a long time I did similar with my neighbours - it took a three years to get planning permission etc. The builder spent 100K to get the planning permission for three blocks of flats and 5 three bed houses on the plots of five existing houses.
I made an extra 75K over the value of my house, but spent three years living in a house that I felt there was no point doing anything to.

Sadly there is also the potential for people not to want to live next door to a building site, then a new development. There is possibly a chance that developers would want to buy, but obviously they want to make money on the deal also so would drive a hard bargain. Good luck with whatever happens, it’s always an intense time.

That sounds like sacrilege, Victorian homes were built to last, unlike the shit that gets banged up in 2 weeks nowadays

I would be more worried about being able to sell my house. Would the neighbour consider buying yours?

We are trying to make the best of a bad situation. It is all somewhat disappointing

I can't work out if this is a detriment or an opportunity for us.
People are likely to be put off by such work, but there is an opportunity as our garden is massive and the proposals give a side access route to the back of our garden.

I want to know how it might affect our price, but dotn know how to work it out?

I was told when finished house price would be same as pre-selling garden hence extra for garden, but either sell before or after building work.

Maybe approach a builder? Look at outline planning permission for a house on your property.

Pulling down a Victorian house to squeeze in five newly built just seems so sad.

See who the agent putting the planning application is is, and approach them and say you're putting the house on the market and would yours also be of interest to the overall development

Thanks ariela, good advice.

Should we be cautious about playing our hand early?

OP - if you are in the South East please PM me, my husband works for a well known company and happy to offer advice.

Victorian homes were built to last, unlike the shit that gets banged up in 2 weeks nowadays

Think it depends. I'm in a Victorian terrace and I reckon these ones were knocked up in an afternoon tbh. Even as a layperson I can see some of the brickwork is shite and they were definitely working without spirit levels!

An architect once told me that if you get planning permission to build another property on our land, it instantly adds 20% to the value of ypour property.

Many high street mortgage providers will not lend on properties that have granted planning permission to knock down and re-build on the plot. You might want to beat that in mind before you apply for planning permission.

Thanks for comments.

I can't see a benefit of knocking down this property so it would only be to put an additional at the end of the garden.

Could you not approach the builder or architect from next doors project and offer to sell him some of your land so that they can add another house to their development??

the proposals give a side access route to the back of our garden.

Is that only if the developers/owners allow (sell!) you right of way though?

Presumably.

They may not give permission or they may well charge, otherwise what benefit is it to them?