Should we proceed with this sale? Would you?

Should we proceed with this sale? Would you?

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m3jappa

Original Poster:

6,431 posts

218 months

Tuesday 6th December 2016
quotequote all
After a fair amount of searching we have settled on the attached house, we have a good discount from asking.

Pros: lovely looking house with a third of an acre.
In the country but within 10mins of 3 local towns and 15mins from major roads.
We really like it and can see room for improvement.

Negatives:
The house is fairly close to a B road, approx 10m I reckon.
The biggest problem by far:

The plot sits centrally on a larger plot which was divided by the previous landowner. The plot which surrounds it was for commercial use (bizarrely owned by a mates granddads fencing firm).
Those people for years tried to get planning for 7 then 6 then 5 houses. All of which were declined.
Planning permission was then granted for a 10000 sq ft office (commercisl land remember). Tbh I have seen these plans and the office would have been a barn type building which actually looked great and was positioned so it couldn't really be seen).

The land has now been sold to a local developer. We spoke to the current vendor who told us the developer told her that :
We can have the 'triangle of land' at the front
New fencing
He plans to build 3 'executive' homes.

That's all great so we agreed the price and sale based on me confirming this with developer.

Fast forward yesterday the developer calls me (mutual friend puts us in touch). He tells me that he has said none of the above.
He ideally wants to build 5 5 bed but isn't sure if he will get that. Looking at local planning they are very strict, with almost everything beind refused, however this guy did get permission to build 4 houses down the road a few years ago.

The deeds also show a slightly different line than to what is currently being used. The vendor tells us she took an indemnity out 8 years ago so is fine. Technically it looks as if the landowner next door owns some of the entrance to this property, which would mean if we put gates up then they would be on his land.
Conversely we have a right of way to access on the actual road which is the strip of road on his property. So we could both be in trouble.
He has said if the splay at the front is of no use then we can have it, however he won't know for some time as it appears on the plan that it's a splay for visibility for the main road. If you visit the site though you can see it isn't a splay and for some reason it's just been sectioned off legally like this.

We have instructed solicitors and currently sale is going ahead, I just have a bad taste in my mouth as someone has lied to us.

I do realise that if you live in the country or infact anywhere with open ground around it you run the risk of development. My biggest fear is planning isn't granted and it ends up a fencing yard again.

Just to clarify we love the house, it's very easy to make this surrounding plot totally private from us with trees/screening. The house is IMO cheap for what it is in the local 10 mile radius. I'm also aware that when it gets built on then the value of ours could well go up overnight as the concern is gone.
I just don't want to end up stuck there because we can't sell. This isn't out forever home.

Have a look at the map link on here.

http://www.rightmove.co.uk/property-for-sale/prope...

Edited by m3jappa on Tuesday 6th December 08:17

m3jappa

Original Poster:

6,431 posts

218 months

Tuesday 6th December 2016
quotequote all
thanks all so much for taking the time to reply. i can always count on piston heads! smile

heres the cold hard facts:

the triangle at the front is owned by next door, or at least i can assume that. i have spoken in length tonight to the developer who didn't realise he owned it but agrees it very much looks that way. He also agrees that while he doesn't mind us using it or putting gates in etc someone in the future might not like it.
He didn't sound willing to sign it over although thats not to say he won't.

The 'no mans land' bit between the property and the land, she apparently has an indemnity for. I'm not sure on this yet. although going by our actual deeds for this house it looks like the garage is actually not on our land.

The developer has openly admitted that planning is not a given, he says that if it isn't granted its likely they will sit on it until it is or until they want to sell/release the money (appearance gives the impression he's absolutely loaded).

we do have a right of access from his land onto ours, yesterday when speaking to him he was keen for me to sign that over so i avoid 'maintenance costs' however i think its more a case of while we have a right to it he can't move that road,i imagine potentially we could oppose certain planning by stating we need it.


its such a shame, we love the house and i assure you for that money within quite a radius we won't beat it, everything else around that price is too similar to our current home but 250k more. granted bedrooms might be a bit bigger but apart from that our current house ticks too many boxes to move just for the sake of bigger bedrooms.

I've also got a very foul taste in my mouth, initially we went back and looked after the estate agent told me:
'the landowner play to build 3 executive homes and is confident he will get permission'

that has now become 5 homes he plans and he also potentially owns the entrance to the property.

The developer actually seems really nice, i know a few people who know him who have told me he's a good bloke, when i spoke to him tonight he said he was pleased i phoned and that he had been worried that he had given the impression that he would defiantly get planning when he might not and that he didn't want me to risk buying the property if he can't get planning, his exact words were 'you don't want to be unable to sell it in the future'

i will instruct a solicitor as its not going to break the bank to find out some more.

m3jappa

Original Poster:

6,431 posts

218 months

Tuesday 6th December 2016
quotequote all
Also to add i have looked at the previous planning applications for houses which were iirc about 12 years or so ago. The council appears to reject house based on the fact it would take employment away from that site.
the previous owner of the land (I'm still amazed its my mates granddad and his dad grew up on this plot, years before we even knew each other) had stated in his applications that he would surrender commercial use of this land and would set up somewhere else, but the council didn't like it.

I feel thats why planning was granted for these offices. as it would bring employment. i just fear that in the future the land would be worth a lot less and would end up as something like a scrap yard. i can't say i would buy the land as i'm sure it will always be worth in excess of 200k and i doubt i could ever afford that, especially as it would be nothing more than a 200k garden to me.

m3jappa

Original Poster:

6,431 posts

218 months

Tuesday 6th December 2016
quotequote all
Also to add i have looked at the previous planning applications for houses which were iirc about 12 years or so ago. The council appears to reject house based on the fact it would take employment away from that site.
the previous owner of the land (I'm still amazed its my mates granddad and his dad grew up on this plot, years before we even knew each other) had stated in his applications that he would surrender commercial use of this land and would set up somewhere else, but the council didn't like it.

I feel thats why planning was granted for these offices. as it would bring employment. i just fear that in the future the land would be worth a lot less and would end up as something like a scrap yard. i can't say i would buy the land as i'm sure it will always be worth in excess of 200k and i doubt i could ever afford that, especially as it would be nothing more than a 200k garden to me.

m3jappa

Original Poster:

6,431 posts

218 months

Wednesday 7th December 2016
quotequote all
I don't 'think' lenders are difficult or insurance etc, they are just a timber framed house, the same as big developers knock out all the time. These ones just have part of the timber frame showing.

I will say almost every potton I've looked at (only pictures and floorplans apart from this one). Do have the beams in silly places, some are ridiculous with them being in front of bath tubs or in the middle of rooms. The only silly beam in this place is IMO the one in the dining room which I have spoken with potton about and they have told me that it's failed straightforward to put a steel in it's place and lots of customers have done this (guess I'm not the only one who thinks it's silly).
The beams were always a dark colour, this place has the light orangey colour which isn't as bad as the pictures show. However again potton now use a sort of smoked colour which looks great, they told me this can be done to existing houses but couldn't indicate cost. They also have their show home with a painted white stair case, architrave, skirting and doors which looks much much better.

Anyway. I spoke to the solicitor today and even before I've handed a penny over she really doesn't like the sound of it all. She has basically said what you've all said. I have said we will proceed based on her findings. I know what the a sewer will be but for the sake of around £300 I'm willing to spend that in the hope she can turn round and say something along the lines of:
The land is no longer commercial
The access is fine and we can do a deal with the developer by signing over access to the side if he gives ownership to the entrance.
The indemnity is fine.

But of course I know that's a long shot so am back looking again at the tiny amount of houses available which are overpriced, neglected and appear to all have bizarre issues (saw one I thought looked alright, found it's next to a hand car wash, or some new builds which looks great, over look a golf course but the golf course has planning for a hotel in the line of sight of the view you will get, and the view they are defining as a selling point.

frown

m3jappa

Original Poster:

6,431 posts

218 months

Saturday 10th December 2016
quotequote all
I have a fairly big update on this, and it's good!

I went into the estate agents today to express our concerns and to say that unless there's something big going on then we have no choice but to pull out. I sat down with them and showed them all the deeds showing the neighbour owning access etc. they agreed it's a huge problem.

They then call me later on to say the vendor is in with a 1" thick booklet which is the indemnity she has taken out.
The bottom line is (and obviously a solicitor has to check this) that the indemnity is covering the complete strip of land to the side of the house.
After 10 years it can be claimed. 8 has already passed. She's under the impression that because she took this out 8 years ago no one else can do the same and as such while it's not legally yours today It will be.

Note below the deeds do not show the new house outline but the original bungalow which was replaced with the potton house.

Here's the neighbours plot which appears to show him owning the entrance



Here's the vendors plot



Here's the plot which the indemnity covers



There is a note which says that the blue bit is owned by the neighbour. So I am unsure on how this piece can ever be claimed, however even if it can't be claimed it's not a big deal. More of a big deal is his deeds showing he owns the whole drive entrance and him then legally challenging the indemnity. Again a solicitor needs to tell me if these scenarios can happen.


Which leaves the elephant in the room being how I'm now scared about commercial use. Someone said 'imagine the worst thing that can be there and would you be happy'

Well that's now the only thing I can think of.

Logically the following surely applies:
If you live in a rural area or even an area which has some green open space you run the risk of anything from travellers to a Burger King being put there. As such I could rule out any home with green around it. You could only possibly look at estate locations or very very well developed and established areas. No one would live in the country.

For me personally I know I can screen that whole plot with something like large bamboos. So unless it was something extreme there it wouldn't really matter. However it's not me but the future buyer. This isn't our forever home.

I have said to the vendor I'll continue to consider what to do. I need to find out if I can determine if it is still commercial land (it's been unused for over ten years I think).

I also mentioned to the vendor and estate agent that would there be a way we can draw up a contract between myself and the developer which says first refusal to sell the land must go to me for it's market value. (I'd have to find a way of getting the money granted) but it's just an idea currently.

I know it's easy to say find another house but we have almost bizarre criteria.
Nice looking
space to park my van and trailer
Space to keep my two mini diggers
Space for my tools.
Within 10-15 minutes of south woodham ferrers because both parents live there and my buisness is establised there.
Somewhere with a chance of increasing value by improving the property.
In an area where my young child has options of good schools.

I assure you after hours of trawling rightmove for the last 6 months there has been no more than 5 houses.
One sold for 60k over asking within a week because it's probably one of the top ten houses locally.
The other was right at the lowest end of budget and wasn't ideal but I liked it, this sold before it even went to market.
The other one is about 20mins away, but was underpinned a few years back, they have no insurance and is basically another legal nightmare.
The other one backs onto a river. Is almost perfect but it's down a road with loads of old crap mixed in with luxuary homes. The extensive work carried out looked like it had been budged badly as the floor looked uneven! It's also about 20 mins in the wrong direction and is awkward to get to for family.
Final house is this one.

I'm hoping that some sort of agreement about the land can be reached. The developer looked gutted when I said we might not go ahead. He can see I'm more reasonable than the vendors ex husband.....

m3jappa

Original Poster:

6,431 posts

218 months

Saturday 10th December 2016
quotequote all
It also might be in his interest to make an agreement because we own right of access on his land to the side.

m3jappa

Original Poster:

6,431 posts

218 months

Saturday 10th December 2016
quotequote all
The thing is I'm assuming it's adverse possession of unregistered land, no one actually owns it, looking at this new paperwork from the vendor the only bit he actually owns is the blue bit on that updated outline, which coincidently is the initial triangle we wanted, but can live without.

We haven't yet fully instructed a solicitor, I was about to when I realised all these issues. I have spoken to one and she basically said this is bad.

However with this new information I will be paying some money to determine exactly what the indemnity covers, is it transferable, what happens in future etc etc so we don't have issues later.

Surely if I can eliminate all risk before we proceed there is no risk, the only risk is that the developer may build a few houses, which I am actually keen on. It would raise the value of this one.

IMO it's in the developers interest to sign some kind of legal agreement. If he doesn't then this won't happen as like mentioned too much risk.
The developer spoke to the vendor earlier and said there's no way he's selling the land for commercial, he only wants houses, he will keep applying until he gets it and so on, however he's reluctant to sign anything. Well if that's the case then we can't proceed.

Here's the lowdown from my pov.

We sign an agreement which states:
No commercial use while he owns it.
We won't oppose anything as long as it's 5 or less houses.
We get first refusal to purchase at market value if and only if he decides to sell.
We give up the side access road.

The benefit to us is we know it won't be a yard or a KFC. We will be able to use this when we sell to show commercial use is not going to happen, only a max of 5 houses, however if we sell in ten years and nothing is built and he still owns it it's clear that it will always have nothing there.

The benefit to him is
He gets his road and can now develop in a way which doesn't have to include it
He gets a neighbour who is amenable to new building and won't oppose it, and will welcome it.
He gets a new owner who will properly finish off and add value to the house which will lift the potential values of his.
He gets an almost guaranteed sale if and when he ever decides to sell.

If that all takes place if can't see how it isn't good for us all. I assure you if we don't buy the place this woman is going to give him hell, she's not rich but she's not short of a few quid and after speaking with her won't take any st, be it in a legal or not way.


m3jappa

Original Poster:

6,431 posts

218 months

Saturday 10th December 2016
quotequote all
Nice reply mjb1! I do appreciate people's opinion.

You are basically correct with your drawing.

The fence has been that way since before the current house was built. This can be shown via some photos I found of one of the previous planning applications. The reason it's such a nasty looking fence is because it was a fencing company there who literally put what they had in.

The pink bit is meant to be blue and it denotes the access the vendor has via the developers land.

The bit at he front IMO should be verge and if I did own it then it would be put back to verge as it looks horrendous.

I'm not sure if something has been bought to his attention but I'm not bothered anyway. We will only go ahead if all of this information can be made into what would be safe for us. Although I do believe that in that area of the plan all he owns is the bit up to the fence. As far as his deeds are concerned it shows ownership up to that line.
The original deeds we have which show the old bungalow are flakey, however it can be seen that the new property was built further over, giving little doubt that at least the driveway is ok (it appears that way to me anyway.)

m3jappa

Original Poster:

6,431 posts

218 months

Saturday 10th December 2016
quotequote all
Looking at the paper she gave earlier showing the indemnity I'm confident the garage is built inside the boundary. You can see the existing house was built further over than the original place which is what's shown on those deeds.

I'm not sure why there was a covenant for access. The land was owned by a family, I've spoken to the man named in the covenant and he said that back then it was all owned by the same family and exact lines weren't really scrutinised. I don't think he even knew why there was a covenant giving him access via that blue strip.

m3jappa

Original Poster:

6,431 posts

218 months

Sunday 11th December 2016
quotequote all
garyhun said:
Shouldn't the title read "Should we proceed with this purchase"?
Bottom line.......

Yes hehe


The vendor does have an indemnity for this land, however looking into it today it appears you still have to apply for adverse possession once a certain time frame is up. Of course though it doesn't mean it's automatically yours.

We will speak to a solicitor but I do agree that the whole situation isn't looking overly great frown