Help! Sold property to developer who wants planning permission first

[Louisa1962]

Please someone help me. Me and my family are in a bit of a mess (understatement).

I signed up with a local agent back in May after my online agent went bust. He soon found us a buyer in the shape of a local property developer, who has a number of properties in their portfolio.

They made a low end offer, which after great consideration we accepted- mostly because they were cash buyers and willing to move quickly. The only stipulation was that they wanted to convert our family home into flats, and therefore would proceed once they had gained planning permission to convert the property. They also wanted the property to be taken off the market. I was assured by the agent they had dealt with them before and were decent/reliable applicants. So we agreed.

After waiting 8 weeks for the usual planning process, plus a further 3 for architects to write up plans, the council refused planning permission on the conversion. The agent hasn’t been easy to get hold of, but when I last spoke to them on Friday they told me the buyers were making amendments to plans and will re-submit them to council.

However, in the meantime we have found a property to buy we love, and are not in the best financial position ourselves. What do I do now? Do I wait for the buyers to secure planning, which could still take many weeks? Or do I tell the agent I have waited around long enough and want the buyers to exchange and complete ASAP regardless of planning?

I haven’t been able to sleep worrying. I don’t want to lose buyers, I don’t have many other option if I do. But at the same time, I can’t wait around on a planning promise which could take many more weeks and still fail.

Any advice welcome! Thanks!

Developers do sometimes get pp before purchase. It's actually more cost effective than purchasing something that they can't develop. Even if they bought it, failed and sold on they'd still pay the same or more in stamp duty and legal/financial fees.
Option agreements are sometimes used on single plots, but often not, it's takes time and cost to get them agreed, sometimes it's just easier to take a punt.
PP can be delayed for long periods for all sorts of reasons, so perhaps they aren't the right buyer for you. .
You can either wait it out but it could take a while. You could give an ultimatum but they may be unable to get finance to purchase with out PP so you have to prepare for them to walk away.
They are probably paying the agent a fee of some sort to get first dibs or they'll be marketing the flats the other end.
If you go back on the market stipulate buyers in position to proceed only.
If you can stick it out you could also look in to getting PP yourself, if you can afford it, as you'd be in a stronger position and able to ask for a higher sale price.

They were very optimistic with the 8 weeks timeline. That is the decision timescale, in addition to that, drawings will need to be undertaken, plus any amendments, surveys, neighbour consultations, consideration to utilities, parking, wildlife etc etc 10 - 20 weeks is more realistic.

I’d still it back in the market, with the same agent, tell them the developers offer till stands however if another buyer is proceed-able you’ll consider other offers, that should speed them up, the refusal will come with guidance so they’ll know what amendments are needed.

And so should the OP. Often refusals are traffic related. More owners, more cars emerging into the road.

I think if you have not replaced period features or got your house up to the condition of similar houses, you have to sell cheaper. That’s the market but you still have one buyer in a year. I would remarket with another agent. What’s the point of using the first one?

Further updates. Spoken to the case officer at the council, and they confirmed to me it was a number of issues but the overriding one was that it was a case of ‘over development’, three dwellings would not be compatible with the amount of internal floor space. Other issues included out of keeping with local area, environmental issues relating to natural light and the raising of the roof for a loft conversion.

The council officer also confirmed even if the buyers resubmit or appeal (and so far to date they have not done so), the chances are the appeal would probably fail because the main issue of over development could not be overcome.

I am assuming a lesser development of two flats would probably be accepted, but they would probably try and alter the agreed asking price, which would not be acceptable to us.

I’d get it back on the market ASAP

Back in the market then.

The numbers for 2 flats probably won't make it as attractive a proposition. Chances are the developer is hedging his bets with several properties and will proceed with whichever comes to success first, then dropping others. You need to remarket either with this agent or another.

Over development is an odd phrase. The house is already the size it is. Very many houses are converted to flats. Are they saying they just dont want flats in your road? Or does over developent refer to the size of the roof space enlargement? If someone bought the house, as it is, it could have permitted development rights. So is this "over development"? Slightly strange. However, the developer wants a flat in the roof and that appears to be the sticking point. They clearly need three flats.

Councils frequently lose appeals. They frequently do not follow their own policies fairly.

However, get another agent who can get people round to see it. Assuming you do not have a single agent agreement that lasts for months and still has time to run.