Selling house to developer

[Annapolis35]

Hi I hope you can all help.

We have sold our house stc to a guy who wants to turn it into three or four flats to rent out. We find out he’s applying for planning permission before the purchase is completed and am a bit concerned by the sale falling through because of that. He sent some architects round earlier this week to do drawings. I have told the estate agent to tell him that the sale is not dependent on the planning application and that frankly we would just look for another buyer. I have also informed my solicitor. We are moving because of personal reasons and have to go. Is this normal to do it before buying? I know it’s allowed. Is there any way we can protect ourselves from him stalling because of the planning application?

Nobody more experienced has answered so I'll pitch in.

Ask your buyer to give an indication of his timescales. Ask your solicitor what are the expected next steps (I expect survey by week X, enquiries by week Y, etc) so you can see if your buyer is falling behind. This way you can notice delays as they happen and take action, rather than it being a big surprise at the end.
You need to make the buyer aware that time is of the essence (the offer isn't just £££, it's £££-with-completion-within-specified-months) but without giving him the idea that he can gazunder at the last minute.

Ask for a deposit to show good faith?
Ask EA (?and solicitor?) if he has had any dealings with the developer before.
I know that smaller, non-extended houses seem to be thin on the ground these days. Is it the same with larger, splittable properties like yours? - ask the EA how strong your position is, how many other such properties are out there for the developer.

Op, this could work in your favour, if he gets planning permission it could massively increase the value of his house. Would you be able to wait for him to get it and then sell to another developer? Or ask for more money from the first developer.

Value of your house…..

I’ve just remembered friends of mine sold a house to make flats. They signed a contract that meant subject to the developers getting planning permission they would get the market value of their house with an extra 10%. The process took a year and if the developer had walked away with no planning permission my friends wouldn’t have lost out.

Thank you all. I will ask the buyer about his timescales, I did ask him the other day when he was here but he was a little vague and said he would work towards our timescales. We just filled in all the forms for solicitor so know the draft contract is going out next week and then it’d be a few weeks of queries. Survey is booked in for 27th. Interesting about the contract with a 10% uplift. I will also ask EA about our position and how strong it is in regard to similar housing, I don’t think there is much like this as it’s quite a uniquely large house with a lot of potential.

unfortunately we can’t wait around forever for the house to sell. My mum is not well so we are moving into rented to be nearer until we figure out where to buy, and thought it would make it all a little simpler to not have a chain as moving from England to Scotland.

The uplift is a great idea, a great negotiating tool. Presumably you are happy at the agreed price but he doesn't know that for sure. Tell him that someone has just mentioned the idea but you are content to go ahead at the agreed price if he hits XX date. But any delay and you will ask the solicitor to include an uplift clause.
That might get him motivated!

That’s a good idea, thanks very much. Definitely worth considering planning permission would add serious value - I would think 10% is conservative.

Op, I’m sorry to hear about your mum. I wouldn’t necessarily trust your estate agent, he might be more interested in making a deal with the investor to sell the flats.Could you go on zoopla and see recent sales prices of flats?

what's the value of your house ? First trust build on your developer if you are suspicious about that he not deal legally then contact with new developer. some marketer walked away with planning you have no chance to catch him .

sell to the another developer is the best option

The developer isn’t selling them immediately, he is planning to make them into Airbnb flats as it’s a touristy area. But yeah never trust estate agents, they’re more focused on making any sale. The house is valued around 240k and we have agreed for that amount. I’ve asked the agent to see his intentions and once she’s got back to me I’ll decide dependent on his response - think uplift clause is way to go.