Discussion
My parents bought some land years ago. It's 1.7 acres of mainly scrub, grass and woodland, on a country lane in a quiet area designated green-belt. They've not used it for years, are worried that trees might fall and squash people, and the chances of it ever being granted building permission are miniscule. They're now pondering selling as someone has just approached them with a view to purchase as somewhere to keep her animals. Just so I'm more aware of what they should be doing (!) can anyone tell me what they should be doing?! I think my plan would be to get an agent to value it (is that as easy as an estate agent valueing a house?) and then ask the interested party how much she thinks it's worth. Is there anything else not so obvious that they should be doing? Can anyone recommend such an agent/valuer in Hertfordshire?
One idea they had is to sell it with a clause in the contract allowing them to buy back half of it at cost price should building permission ever be allowed. Such a contract would need lots of long words in it of course, but is this sort of thing possible? It would seemingly benefit both parties.
One idea they had is to sell it with a clause in the contract allowing them to buy back half of it at cost price should building permission ever be allowed. Such a contract would need lots of long words in it of course, but is this sort of thing possible? It would seemingly benefit both parties.
Sell all the land, but with a clause in the contract that states that, should building permission become available in the future (timescales in contract perhaps) half the land (how to determine which half would be in contract) must be sold back to my parents at original purchase price. That way, buyer gets the land for her own use (for ever perhaps, if no building ever allowed) and if permission is granted, she and my folks get the benefit. Sounds a bit favourable to my parents of course, but alternative is that they might just tell her they've decided to keep the land and not sell it after all. Hope that explains.
The opportunity to build on this plot of land is of great interest to my parents (it's a fantastic location, which is why it's unlikley to be buildable soon!). Cash for the sale less so, which means they'll just keep it if no interest in a buy-back deal. So, the opportunity will not be anybody else's unless they like this idea. The interested party could do what she wants with the land in the meantime, though this could only really be for accommodating animals, as there's no permission to build at the moment.
Oi_Oi_Savaloy said:
I don't think that anyone is going to agree to paying for some land now and then giving half of it back in the future at the price they paid for it now. why on earth would someone agree to do that? The developer will have spent a shed load of money on gaining planning (not just architects fees but planning consultants, political consultants (it's greenbelt after all), surveys and reports and they wont want to give half their site away. Once you've got a planning permission that land becomes an asset to be sweated.
The buyer wouldn't necessarily be the one to secure planning permission. It would be up to both parties to monitor the release of green belt, and investigate any potential relaxation in the planning rules. I haven't a clue how all this would be detailed in a contract, but the point is, the buyer wouldn't have even had access to any of the land without such a deal, so having to 'give half away' is irrelevant. Looked at another way, they're buying half the land, but getting to use all of it until such time as it could be developed. Why not sell just half the land then? ... because of the burden of managing it (felling wobbly trees and fencing repairs and fear of gypsies etc.).
Useful comments from everyone so far, so thanks for considering this madcap plan! That's parents for you!
Keep it coming.johnfm said:
So let me get this straight - you or your parents lack the ability, cash or nouse to get planning permission on the site. You want to sell the site because you can't build on it. BUT, if someone else has the wherewithall to get planning or build on it, you want some of the land back??
Ridiculous. Why would anybody want to buy the land under these conditions? You want someone else to take the risk, but want to profit from it. Bloody lazy if you ask me.
You've misunderstood the issue here, and become mildly abusive in the process. Not at all helpful. Ridiculous. Why would anybody want to buy the land under these conditions? You want someone else to take the risk, but want to profit from it. Bloody lazy if you ask me.
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