Offer conditional on buyers getting planning permission - anyone have any advice?

[halfbabyhalfbiscuit]

We've received an offer on our place (it's v low so will be rejecting it on that basis alone anyway!) but it was also conditional on the buyer getting planning permission for some internal alterations (it's a listed building).

As I see it, any offer that is conditional on anything that is outside of our control is pretty worthless as we don't have any certainty to make any offers on any places we might like to buy. The EA agreed and said definitely not to stop marketing the property if an offer is conditional.

I'm also a bit concerned that even if they make an unconditional offer, they'll make the planning application anyway and just pull out if pp is refused.

If they do make an acceptable offer should we monitor the planning portal and if they make a pp application on our place, withdraw from the sale unless they agree to pay our abortive costs if they don't get pp?

If anyone has any advice/experience of this, it'd be gratefully received!

Thanks

Don't forget the time issues as well - they'll have to have someone draw up (or draw up themselves) the application for Listed Building Consent (which might involve you having to have someone come round and make suitable plans). and then put it in and wait for the two month decision time.

I think I'd ignore them as buyers as things are and continue marketing it. If they put the application in, and are able to get LBC, then they can put in an offer.

And if the application for PP were successful would this increase the value of your property? Should they agree in advance to share this increase in value with you? I believe that this clause is often used when selling land for development.

Thanks for the replies.

I don't think the proposed works would increase the value of the place overall (I'm presuming it's to make the living space open plan) although it might be helpful for any other purchaser to see that it's an option if pp was granted!

And we've already told the EA's that we want an uplift clause in any sale contract if anyone gets pp to build a dwelling on our garden.

Think you're right in that it'll be best to ignore these buyers for the time being. I'm just a bit worried that any other purchasers might be put off if there are pp applications posted up all over the street!

You could have a chat with the Conservation Officer yourself and find out how likely it is that the proposed works would be accepted - but if they want to make a listed building open plan, I can't help thinking the response would be .

For what it's worth, my sister is a CO and always says to people 'don't buy a listed house unless you're happy to live with the existing layout, because no-one can guarantee consent in advance'.

Thanks - that's a good idea.

I have spoken to a CO before about getting Listed Building Consent (for something completely unrelated) and the whole procedure seems v long-winded. Although the wall I think they'll want to remove is a stud wall so it may be that the permission is easier to come by.

Bit deflated by the offer really. Ho hum, looks like we'll have to keep the tidying regime for a little longer!

I would be very wary of buying a house with an uplift clause in it.

Have to say that I too wouldn be very put off buying a house with an uplift clause - even if I had no intention of building a house inthe garden.
Could you not factor that "potential" into the asking price? Otherwise, I think purchasers may feel that you're still controlling something they've already paid for - it's all in the mind of course.

Anyone making a planning application on your property has to inform you so don't worry about scanning the planning application website.

Thanks nocake - it's really useful to know that!

Interesting to hear people's thought on the uplift clause - all 3 EA's who valued our place suggested it (think case law says they'd be negligent not to) but hasn't planning policy on developing gardens changed now so it's not so easy to do? It's wouldn't be a large % or for very long but would deter a "garden grabber" I guess.

I seem to remember reading that with an uplift clause the buyer has to pay stamp duty on the house and the potential value of the uplift even if you don't develop, but I may be wrong.

Thanks Dexter1973 - I had thought that the buyer just has to apply to defer SDLT as it would be contingent and unascertained as at the date of completion of their acquisition of the chargeable interest but will ask sols to check when and if it becomes relevant

Did you agree to an uplift clause when you purchased the house? As a potential purchaser I might think that you wanted two grabs at the pie and that always leaves a sour taste. Let's face it - the whole pp/value increase is notional. You didn't develop the land - presumably for a good reason - but you want to tie the hands of the people you sell to - that sort of thing can really put people's backs up. Just factor it in to your asking price (you don't have to do it cos the EA says so - your choice) - Discuss the 'opportunity value' with purchasers and take any 'supposed value' now when you sell. Makes life easier if you can do it.