Land with planning permission - how much to build a house?

[Multiplying2020]

Has anyone done this? We've been offered land (about 1/3 acre) with planning permission by a family member in case we're interested in building a house, but have no idea how we'd start the process or how much we'd have to borrow to finance this.

It seems too good a chance to pass up, but we don't have a clue as to how much would it cost/how would we finance it?

It would be in SE England, and we won't have a huge budget but can probably do a bit of DIY/decorating ourselves (not building work though). Anyone's experience would be great!

Build cost estimates are about £1800-£2200 per sqm for a house with a standard finish. You could get it a bit cheaper or go higher of you want a fancy finish. Have a look at what has permission and multiply the sqm on plans to get an idea of basic build cost. If you want to change the house or it's only an outline permission then you'll need to submit an additional planning permission application.

Lots of banks do stuff build mortgages, they come and assess at each build stage and release money for you to pay the builders.

Watch Grand Designs and learn how not to do it

There are lots of self build websites around that might help you find out what you need to think about that might not be obvious, for example getting utilities onto the plot. It’s not just the house, it’s the infrastructure that services the house too. Also right of way to get to it, is that sorted?

Right of way will have to be sorted out, but a developer is taking most of the land before it gets to our plot (the developers are bidding now) so we can have it built in to whatever contract is drawn up with them as it all belongs to family at the moment.

Thanks for the tips (especially the one about Grand Designs ) I'll look into them. We're looking into kit houses at the moment, they seem like they'd go up fairly quickly and have good insulation, windows etc. Any thoughts/experiences with them?

What sort of houses already exist in the area? Would a kit house look very different? You need to consider what you can get planning permission for as a kit house means it’s tricky to change materials if planning requires it. You would have to choose one in a style that would work with that.

Make sure you check the planning consent for conditions, some of these may be costly to discharge (be dealt with).

What about your services? Are they connected nearby? You really don’t want the expense of laying new gas lines...£££

You won’t be allowed to put up something that’s not in keeping with the area. So a grand designs style house alone right next to a complex of 20 modern terraced developer houses won’t get planning. I would assume.

I think you can speak to the council planning dept prior to gage their opinions and get guidance on what to aim for. Although they can’t say yes or no until you submit your proposal.

What an amazing opportunity!

Talk to one of the kit house providers and get a fixed price?

www.scandia-hus.co.uk/

I’ve done this. I’d do it again in a heartbeat, Built the most fantastic house, but

• buy the magazines and get into the websites
• there are self build mortgages, and you can borrow on the value of the land (well you could when I did it but that was a few years ago)
• budget in south east at least 2k per sq m and you’ll have to compromise on something at that price, 2.5k more realistic, and expect the unexpected
• don't forget or underestimate the cost of services, landscaping, general finishing
• it will take longer than you expect, especially if you have to get planning consent
• someone told us ‘it will take twice as long and cost twice as much as the highest figure mentioned, even if that figure was mentioned as a joke’. My, how we laughed.
• kit houses go up quickly but you still have to spend time planning them down to the last detail and waiting for them to be constructed off site

I still drive past houses/empty bits of land and think ‘ooh....’. It’s a fantastic opportunity but dont underestimate how difficult it could be.

Planners don’t care much about what a house looks like unless it’s in a conservation area. If you wanted pp for a grand design you should get it because planners must consider high quality one offs. If they didn't, every house would be identikit.

We have two sets of friends in Potton houses. They are timber framed kit houses. They can work well but the finishes one set of friends chose now looks woefully dated. It feels are bit cheap. But it’s 30 years old.

For my money, go with Huff or similar! I love them. So do buyers. They sell for a premium!

Thank you, that's brilliant! @Mixingitall my parents live in a 40 year old Scandia Hus - that's one of the reasons we're considering a kit house, I like the fact that it's always warm and the huge windows make it very light.

Unfortunately we don't have a premium to spend @My0My, but we'll look into it, you never know

Good to hear you had such a good experience with it @Purplewithred - thanks for the tips, they're really useful - I'll start doing research now!

Ask the winner developer to do you a quote maybe? Gotta be cheaper since they can buy in bulk / will have the machinery?

Talk to the developer that's building the other houses. See if they can do you a deal

That sounds like a great opportunity. I would love to do that. Nothing grand mind, just something with decent size rooms and a mud room!

I’ve just read what you have said again. Right of way negotiations over the land a developer owns might not be straightforward. This needs to be in the sale contract and binding. What contribution is being made to the road and utility installations and drainage? What about laying services over their land to your land? Who is paying? I think very early talks would be needed. Big house builders won’t build a one off. Could you not have land at the start of the development with road access from the highway?

We did this this year. We were gifted land from family and managed to get pp on it. Do not underestimate the time it can take to get through planning,we had outline and when we put full plans in,our 8 week wait turned into 11 months. We aren't alone in that either,two friends waited over a year.
We used a turn key company,as we didn't want to be held up by the different trades not being coordinated. We had build a new access,and get all services to the plot,and get the foundations/ septic system in. Because we used a turn key build,the prices were fixed,so we weren't going to get any unpleasant surprises once we started.
We used Dan Wood. The house is a timber framed prefab,made in Poland and shipped over on 3 massive lorries. I have honestly never seen such an efficient operation in my life. They said they'd be with us at 7am on the day we were due to start,and at 6.50 am,the crane was here,and the first lorry was backed in and being unloaded. The first floor was completed by lunchtime,and the roof was tiled by the end of the week. The whole house was finished on schedule in just 7 weeks. That included all the flooring, decorating and 3 bathrooms tiled and fitted out.The only thing we had to do was get a kitchen fitted. I absolutely love it,the quality of everything is amazing,Nibbe air source heat pump, Roca bathroom fittings, underfloor heating throughout. It is super insulated ( is classed as an eco house) so stays warm in the winter and doesn't get hot in summer,and we have a ventilation system too. It is so easy to keep clean (and we live on a farm) and easy to live in,it's the best thing we ever did.

I forgot to say,we costed out using a builder and a timber frame company and getting all the trades in separately and it was £40k cheaper to do it the way we did,never mind quicker. We sold our old house to fund building this,and lived in a caravan on site while it was built,so are now lucky enough to be mortgage free.

If you are taking a crane over the developer’s land and don’t have your own adequate access, for a crane or huge lorries, then it’s yet another thing to think about. Crane access can need a lot of space and good access.

Interesting thread! We have first refusal on a rural plot, and starting to look at options. Dan Wood sounds worth a look, thanks. We will have a tumbledown cottage with services, hopefully the planners won't give us too much grief.

I had wondered if it is best to get an architect and get them to project manage? What happens with a turnkey project?

Sorry to jump into your thread OP, looking forward to your updates!

You will pay a lot for an architect to project manage. I think the timber frame house builders manage the construction but you need to see if they manage all the other service installations too.

You always need to understand if there are any planning restrictions on the cottage. Is it AONB? Does it have any architectural merit? Does it have any agricultural restrictions? There may be absolutely nothing but it’s always worth checking with your planning department.

Thanks My, we are just feeling our way on this. The adjoining land belongs to family, not a very beautiful area except to us! It was originally a retirement cottage for a clergyman, c1940 and very cheaply built. If we could renovate and extend we would but the structure is quite alarming If we can't get permission we will buy in the village instead. Yes planning department will be first port of call. I have also bought loads of self-build magazines and books....it's definitely not for the faint hearted, is it?!

Buy the book "the housebuilders bible". Def worth a read before you start. And get on some self build forums

We used Dan Wood's recommended architects and we chose one of their pre designed houses,but then tweaked it to suit us,ie,moving structural walls out, swapping the plant room and office around, moving the stair case ( I paid extra for a solid oak one).,velux windows ect.
We didn't need a project manager,as Dan Wood took care of everything apart from foundations and services. They provide a site manager on the build,ours was excellent,if he said the electrician would be there at 12.00,he was there. That meant that that part of the build was almost completely stress free. The only hassle I had was with Western power when I wanted the temporary meter moved into its permanent position. The house arrived on a Monday morning and by Wednesday the meter was ready to be moved into the plant room. Western power were very slow and difficult. It took ages to get it sorted out and I ended up getting it moved with 24 hours to spare before the electricians came back to do the second fix.
I'd also say,do not be put off by the planning dept. They told us a lot of stuff that we knew wasn't true,or that we were in a conservation area,when it stopped at our gate ect. They said that we'd never get pp as it was a green field site. We did,and not only for one house,we got pp for three. My cousin and my sister have self built too. I can tell you how to maximize your chances of you want to drop me a pm.

Very useful information, thanks.