Land development ideas
Discussion
I've inherited a decent plot of land and I would like to develop it, to some extent before selling on.
It's approx 3.5acres, very close to stansted airport/M11. Right now it has a slightly delapidated 3-bed house and some old farm outbuildings. about 1 acre has a convenant restricting building.
I think it would be best used for either airport parking, storage, car dealership, business park (offices or units), or hotel, or a mixture.
Neighbouring land is used for business parks (offices/warehouses) and car dealerships. Residential probably not ideal due to noise, sold prices for a few neighbouring houses are fairly low.
I don't have experience, yet, of doing anything on this scale. My goal is to at least plan land usage, divide into plots, get planning permission, sell plots to developers. I could maybe raise ~£50k if there's a good chance of getting a good return. I do have plenty of time, there's no rush.
I just wondered if anyone else has any similar experience or pointers! I imagine I should start by talking to the local council to get an idea of what would be accepted, and local estate agents which specialise in this sort of thing.
Cheers
It's approx 3.5acres, very close to stansted airport/M11. Right now it has a slightly delapidated 3-bed house and some old farm outbuildings. about 1 acre has a convenant restricting building.
I think it would be best used for either airport parking, storage, car dealership, business park (offices or units), or hotel, or a mixture.
Neighbouring land is used for business parks (offices/warehouses) and car dealerships. Residential probably not ideal due to noise, sold prices for a few neighbouring houses are fairly low.
I don't have experience, yet, of doing anything on this scale. My goal is to at least plan land usage, divide into plots, get planning permission, sell plots to developers. I could maybe raise ~£50k if there's a good chance of getting a good return. I do have plenty of time, there's no rush.
I just wondered if anyone else has any similar experience or pointers! I imagine I should start by talking to the local council to get an idea of what would be accepted, and local estate agents which specialise in this sort of thing.
Cheers
Thanks for your reply.
I checked with the local council and the land is zoned S8 as follows, which suggests they'll be strict.
However, very large buildings were recently built nearby on land in the same zone, which suggests it is not an insurmountable hurdle.
Policy S8 – The Countryside Protection Zone
The area and boundaries of the Countryside Protection Zone around Stansted Airport are defined on the Proposals Map. In the Countryside Protection Zone planning permission will only be granted for development that is required to be there, or is appropriate to a rural area. There will be strict control on new development. In particular development will not be permitted if either of the following apply:
a) New buildings or uses would promote coalescence between the airport and existing development in the surrounding countryside;
b) It would adversely affect the open characteristics of the zone
I checked with the local council and the land is zoned S8 as follows, which suggests they'll be strict.
However, very large buildings were recently built nearby on land in the same zone, which suggests it is not an insurmountable hurdle.
Policy S8 – The Countryside Protection Zone
The area and boundaries of the Countryside Protection Zone around Stansted Airport are defined on the Proposals Map. In the Countryside Protection Zone planning permission will only be granted for development that is required to be there, or is appropriate to a rural area. There will be strict control on new development. In particular development will not be permitted if either of the following apply:
a) New buildings or uses would promote coalescence between the airport and existing development in the surrounding countryside;
b) It would adversely affect the open characteristics of the zone
Sounds like a great opportunity!
As has been said, what you need as an on the ball planning consultant.
Yes, the local council might tell you what their plan says, or, their interpretation of the current sets of rules. But, from experience, what they can tell you you can do, and what you are able to get permission for are very different things. The latter being much more scope for profit.
A good consultant will should come and do a site visit with you for free and have a face to face conversation about what you want to achieve, and will outline what from their experience in dealing with the local rules and the council is possible.
From there, it depends what your goal is. You might be able to for example progress to get planning permission for a hotel. The consultant will engage surveyors, ecologists, highways experts etc and engage with the council on your behalf to apply for permission. Then, you can sell the land with permission to build. If you wanted industrial use etc, the process is pretty much the same.
Costwise you largely get what you pay for. After interviewing a few, a good chunk of them have experience in house extensions, single plot homes etc, my advice would be to go for someone with specific commercial experience. I've used Strutt and Parker before, and they have that kind of background. They'll also produce for you a scale of fees at the start so you know what you will pay for specific projects.
As has been said, what you need as an on the ball planning consultant.
Yes, the local council might tell you what their plan says, or, their interpretation of the current sets of rules. But, from experience, what they can tell you you can do, and what you are able to get permission for are very different things. The latter being much more scope for profit.
A good consultant will should come and do a site visit with you for free and have a face to face conversation about what you want to achieve, and will outline what from their experience in dealing with the local rules and the council is possible.
From there, it depends what your goal is. You might be able to for example progress to get planning permission for a hotel. The consultant will engage surveyors, ecologists, highways experts etc and engage with the council on your behalf to apply for permission. Then, you can sell the land with permission to build. If you wanted industrial use etc, the process is pretty much the same.
Costwise you largely get what you pay for. After interviewing a few, a good chunk of them have experience in house extensions, single plot homes etc, my advice would be to go for someone with specific commercial experience. I've used Strutt and Parker before, and they have that kind of background. They'll also produce for you a scale of fees at the start so you know what you will pay for specific projects.
You can't trust a lot of people. So be careful! A lot of people will make promises and then not deliver. But you will have paid for it in the meantime.
I find that whilst planning consultants will help with the technical side, they are not savvy on the commercial side and you lose a lot of the upside.
I suspect you need a partner who will run and fund it (keeping your £50k safe) and someone you trust. I would tour the local area (say 30 mile radius) and look for new examples of what has been done (by a developer) and then have some meetings. Don't rush in to anything - it is not going anywhere.
Hope that helps. Not in region but can steer if needs be.
I find that whilst planning consultants will help with the technical side, they are not savvy on the commercial side and you lose a lot of the upside.
I suspect you need a partner who will run and fund it (keeping your £50k safe) and someone you trust. I would tour the local area (say 30 mile radius) and look for new examples of what has been done (by a developer) and then have some meetings. Don't rush in to anything - it is not going anywhere.
Hope that helps. Not in region but can steer if needs be.
Small car is right (and others above too). The land isn't going anywhere so you've got time. You can do alot of research online to found out what the current land is designated as. But similarly you can actually go to the council offices (or a large public library) and actually look at the maps the council have procduced with every property in their borough on them and colour coded as to their 'use'. I find it easier to look for the land that way (I've bought the UDP/LDF's of alot of Boroughs I work in) as I can orientate myself quicker (on screen you only get the immediate vicinity - sometimes by zooming out to understand where you are becomes too vague) - it's just quicker for me at any rate.
The Borough has the maps and then a set of policies to go with it (thick thing).
You land might be covered by a number of policies. It could be protected employment within greenbelt for example (I don't htink it'll be employment but I'm just giving you an example). You can look at the key on the map and then read up on the policies that covers your land.
Seperately - don't knock any of the buildings over and definitely don't knock any large (commercial not your tiddly grandad) glasshouses over (even in disrepair). There are alot of cunning things you can do with existing square footage when it comes to persuading the council that your planning permission is justified in respect of what's already there......you'll have to overcome some other hurdles first but existing buildings help justify an increase in square footage sometimes. Other times you might argue that you are delivering less than what is already existing in actual fact. There are also rain attenuation arguments that the existing roof square footage can assist with (but I'm not going to get into that here).
Also - pay careful consideration to the nearest village or town curtilage (the thick line around each conurbation that denotes the village/town boundaries). Is your land within or abutting that curtilage? Will help potentially with the chances of planning and if within the curtilage can sometimes make a huge difference to the potential land uses and more important the time frames in which you might achieve a viable planning consent.
I'd also check to see when the next round of 'call for sites' for your borough is due (ring the duty planning officer of the borough - the plannnig dept) and ask.
If your land isn't designated at the moment - promoting your land into the development plan of the Borough is one step towards achieving a planning permission for all of the developable lane. (spelling!).
When you find out (or if you need help) what your land is designated -come back and tell us - and we'll try to work out what potential there is. Congratulations by the way (and I'm sorry for your loss)
The Borough has the maps and then a set of policies to go with it (thick thing).
You land might be covered by a number of policies. It could be protected employment within greenbelt for example (I don't htink it'll be employment but I'm just giving you an example). You can look at the key on the map and then read up on the policies that covers your land.
Seperately - don't knock any of the buildings over and definitely don't knock any large (commercial not your tiddly grandad) glasshouses over (even in disrepair). There are alot of cunning things you can do with existing square footage when it comes to persuading the council that your planning permission is justified in respect of what's already there......you'll have to overcome some other hurdles first but existing buildings help justify an increase in square footage sometimes. Other times you might argue that you are delivering less than what is already existing in actual fact. There are also rain attenuation arguments that the existing roof square footage can assist with (but I'm not going to get into that here).
Also - pay careful consideration to the nearest village or town curtilage (the thick line around each conurbation that denotes the village/town boundaries). Is your land within or abutting that curtilage? Will help potentially with the chances of planning and if within the curtilage can sometimes make a huge difference to the potential land uses and more important the time frames in which you might achieve a viable planning consent.
I'd also check to see when the next round of 'call for sites' for your borough is due (ring the duty planning officer of the borough - the plannnig dept) and ask.
If your land isn't designated at the moment - promoting your land into the development plan of the Borough is one step towards achieving a planning permission for all of the developable lane. (spelling!).
When you find out (or if you need help) what your land is designated -come back and tell us - and we'll try to work out what potential there is. Congratulations by the way (and I'm sorry for your loss)
Look at what developers are active and what they are building in that neck of the woods.
It's a fairly large plot, and sounds like it could be contentious (read: expensive). You may be best looking at a JV route with one of the said active developers in the area whereby you put the land into the JV, and they put in their expertise/cash to develop out.
You will need to take your own advice as well to make sure you keep your pants buckled up. Also, consider any conflicts those developers may have which could mean they slow-time your development etc.
You could also look at granting an option over your land, setting a purchase price (or one to be agreed) which should free up some cash for you, and cover all your legal fees and other costs while the risk passes on to the developer with the option.
In summary - do not go this alone, you will either make a hash of the planning/get nowhere and just stigmatise the land/cause planning issues. A lot of the development world is about who you know as a developer in terms of end-users and occupiers and you cant just ping an email off with a plan to lidl.com etc.
It's a fairly large plot, and sounds like it could be contentious (read: expensive). You may be best looking at a JV route with one of the said active developers in the area whereby you put the land into the JV, and they put in their expertise/cash to develop out.
You will need to take your own advice as well to make sure you keep your pants buckled up. Also, consider any conflicts those developers may have which could mean they slow-time your development etc.
You could also look at granting an option over your land, setting a purchase price (or one to be agreed) which should free up some cash for you, and cover all your legal fees and other costs while the risk passes on to the developer with the option.
In summary - do not go this alone, you will either make a hash of the planning/get nowhere and just stigmatise the land/cause planning issues. A lot of the development world is about who you know as a developer in terms of end-users and occupiers and you cant just ping an email off with a plan to lidl.com etc.
Leedssurveyor said:
Look at what developers are active and what they are building in that neck of the woods.
It's a fairly large plot, and sounds like it could be contentious (read: expensive). You may be best looking at a JV route with one of the said active developers in the area whereby you put the land into the JV, and they put in their expertise/cash to develop out.
You will need to take your own advice as well to make sure you keep your pants buckled up. Also, consider any conflicts those developers may have which could mean they slow-time your development etc.
You could also look at granting an option over your land, setting a purchase price (or one to be agreed) which should free up some cash for you, and cover all your legal fees and other costs while the risk passes on to the developer with the option.
In summary - do not go this alone, you will either make a hash of the planning/get nowhere and just stigmatise the land/cause planning issues. A lot of the development world is about who you know as a developer in terms of end-users and occupiers and you cant just ping an email off with a plan to lidl.com etc.
If the land needs promoting first he could be looking at an Option/Promote deal (85% OMV etc etc). It'll all depend on the timeframes to an implementable planning permission. It's a fairly large plot, and sounds like it could be contentious (read: expensive). You may be best looking at a JV route with one of the said active developers in the area whereby you put the land into the JV, and they put in their expertise/cash to develop out.
You will need to take your own advice as well to make sure you keep your pants buckled up. Also, consider any conflicts those developers may have which could mean they slow-time your development etc.
You could also look at granting an option over your land, setting a purchase price (or one to be agreed) which should free up some cash for you, and cover all your legal fees and other costs while the risk passes on to the developer with the option.
In summary - do not go this alone, you will either make a hash of the planning/get nowhere and just stigmatise the land/cause planning issues. A lot of the development world is about who you know as a developer in terms of end-users and occupiers and you cant just ping an email off with a plan to lidl.com etc.
I just wanted to say thanks for your replies, I've read them all with great interest!
You've helped guide me to the conclusion that this is a complex challenge, and that I should get pros involved, at least for the planning side.
I also previously had no idea about the various no-win-no-fee style arrangements that can be had with planners and developers; that could well be an attractive option to reduce risk and to help motivate a potential partner.
I look forward to meeting up with some local firms next.
You've helped guide me to the conclusion that this is a complex challenge, and that I should get pros involved, at least for the planning side.
I also previously had no idea about the various no-win-no-fee style arrangements that can be had with planners and developers; that could well be an attractive option to reduce risk and to help motivate a potential partner.
I look forward to meeting up with some local firms next.
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