Inherited land/house dilemma

[JaffaBiscuits]

Very, very privileged to have inherited 1 acre of land, with a 2 bed cottage. The cottage itself is uninhabitable, location semi rural.

This is completely unexpected - DH and I have been saving up the past 15 years towards a dream house, we have decent cash savings.

Would you

1. spend all savings building on the inherited land
2. sell it as-is (worth £250k) to add to the savings pot
3. try and add value (apply for planning permission?) before selling
4. spend a portion of the savings to build a house/cottage to rent out
5. something else?

I'm overwhelmed and don't know which way to go. I don't even know if our savings would get us far building anything. I'd have to use a company to manage it all. I have no motivation, time, energy or knowledge for a self build! It's not a location DH or I would choose to live, either.

Would love to hear any thoughts!

Sell it and and cash to the pot towards what you want.

Unless it’s somewhere you’d actually like to live, just sell it. Spending money in the hope of selling it for more is a risky game.

Seeing as it's not an area you would choose to live, sell up and put the money towards what you want.

Sell it as is

I have no motivation, time, energy or knowledge for a self build! It's not a location DH or I would choose to live, either

Sounds as if option 2 is the front runner. You could make enquiries with the planners but what if they say no we would never give permission. You have taken away the glimmer of hope. I have watched enough grand design programmes to know that building your own house is really hard work and that is if you want to build a house and you like the location. Watch some of them back to back and then see what you think. Consider how involved the people have to be. Even with a project manager & architect you still need some concept of what you are wanting.

Unless you are living in Central London, £250k is a substantial deposit which will help you on your way to a lovely house.

So 2 or 3 are your options as you don’t want to live there even if you did have energy and time to build.

Get local estate agent in to value it as is. The only reason I’d get planning permission before selling would be if the potential for planning permission for a bigger building is not so any buyer might be hesitant. But that would require work on your end with architect and council. You might just not want to do this.
Good luck op.

You will make the most money by knocking it down and building a much bigger house. However if you are not willing to put the work in for that then just sell it.

1. Sell with PP. If there is a building on the land already, even in green belt you should get a knock down and replace scheme granted, which will add more value.

Another vote to sell with planning permission. You could potentially make £1000s with a relatively low investment. Speak to the local council and ask to speak to the planning officer - often they will give basic advise if planning could be achieved .

I have no motivation, time, energy or knowledge for a self build! It's not a location DH or I would choose to live, either

Taking that on board, I'd say just sell it as is and put the money into your pot . Good luck !.

Definitely investigate the planning permission option. See if you can get permission to build more than one house.

Speak to an estate agents(s) to see if they know any property developers who might be interested.

Obviously sell it if it's not a location you'd choose and you're not completely into the idea of a self build.

That's not even a dilemma.

Unless the situation is complicated by emotional blackmail/ expectations/ threats of "disappointment" or "sadness" from extended family if you don't keep the land in the family for sentimental/ historical reasons?

Yep, definitely with PP if it's an option. Speak to the experts though - get the land valued as is, and then if it had planning for a reasonable house. Then, if the valuations make PP seem worth it (I'd guess it would be) I'd speak to your local council planning department. They can usually suggest if planning will be viewed positively - some offer schemes where you pay a nominal sum and they can essentially tell you if planning will go through or not.
Then get an architect to draw up plans for a sensible property, including green features if you can as it's more likely to go through planning in a rural area. You don't need to go crazy with it, keep your architects fees as low as you can. Buyers will usually change planning permission once they have the land but it's showing that it's gone through in the first place that is important.
Definitely don't self build or live there if it's not somewhere you want to be!
If the valuation for planning permission doesn't sound high enough to warrant the time and brain power, then sell as is. Someone will want to either redevelop the cottage as is, or self build. That's certainly the easy option, it just may not make you money in the same way. But you're stil £250k up with no personal investment so hardly a loss!

Just sell it.

I would just sell as is. Applying for planning will take months and if you have no emotional investment in the land/house it would be better to move on quickly.

Unless the situation is complicated by emotional blackmail/ expectations/ threats of "disappointment" or "sadness" from extended family if you don't keep the land in the family for sentimental/ historical reasons?

Very much so, unfortunately. A close family member has said how much she wants us to build and live there 'and that's why is was left to you, to keep it in the family.'

Extended family want it kept 'in the family' too. But it wouldn't be their money and stress!!

I would certainly explore the planning permission option - if you went for outline rather than detailed, it wouldn't necessarily take months. It would increase the value - potentially significantly.

Just sell it.

Give first refusal to those that want to keep it in the family, but don't be swayed by them. PIL tried to do this (whilst alive), claiming they'd bought the house "for us" but if that were the case they'd have bought it closer to our work & kids schools and not in the exact location they liked.

Tell them it is impossible for you to live there, or build & rent, you do not have the funds.
I would see if you can sell with PP, or sell it to a developer who can deal with the planning & building. ( planners often get planning where you as a mere mortal are refused)
Or tell your relative, that they are welcome to buy it off you, matching the developers offer

Don't take any notice of those people who are guilt tripping you.If you don't want to live in that location then it would be crazy to do anything except sell it.

@HaaaaaveyoumetTed

Just sell it.

Give first refusal to those that want to keep it in the family, but don't be swayed by them. PIL tried to do this (whilst alive), claiming they'd bought the house "for us" but if that were the case they'd have bought it closer to our work & kids schools and not in the exact location they liked.

This. They then have the chance to keep the land if they want. If that isn't possible at least they might then understand some of the difficulties you are facing.

Just sell it OP. Anything else will entail masses of work, stress and toil. Simples!

Get PP before selling (assuming it would be granted). Will make difference in value thst us worth it.
Maybe see if similar has been done locally, and talk to a local architect.

If its not a location you want to live in I would get planning permission and then sell it.

If this happened to me and I liked the location I'd buy a kit house so there was less work for me.

Rent it out (this appeasing the family sentimentality by not selling) and put the rent income towards a house.

You definitely should not get involved in any building or development schemes unless you have experience, a very hard business head, good planning, project managing and admin capability.