Building development advice needed
Discussion
You may be able to claim that the established use of the land as your access proves that its of no intrinsic value to the council - although this may be a difficult one to prove. If you knew they owned it, but used it anyway its a different thing all together.
Valuing ransom strips is a difficult business, I've just done one for a 12 plot development and we ended up having to pay out £150,000 for a 0.01 acre piece of land - but the value in the site was in the access and without its worthless. If a landlocked piece of land is worth say £50,000 as effectively 'garden value' but supposing it had right of access it was worth £500,000 as a building plot - how much is the access worth - some would argue £450,000... In reality its not quite as simplistic as that but I think you get my point.
Incidently does it have permission for a car park? If so the council must have historically granted access as something is a pretty useless car park if you can't get to it?
I would be tempted to consult a really hot property lawyer - I could suggest a couple if you need. Any help I can offer I'm more than happy
Valuing ransom strips is a difficult business, I've just done one for a 12 plot development and we ended up having to pay out £150,000 for a 0.01 acre piece of land - but the value in the site was in the access and without its worthless. If a landlocked piece of land is worth say £50,000 as effectively 'garden value' but supposing it had right of access it was worth £500,000 as a building plot - how much is the access worth - some would argue £450,000... In reality its not quite as simplistic as that but I think you get my point.
Incidently does it have permission for a car park? If so the council must have historically granted access as something is a pretty useless car park if you can't get to it?
I would be tempted to consult a really hot property lawyer - I could suggest a couple if you need. Any help I can offer I'm more than happy
The planning process and land ownership/rights of access are two completely different things, so ransom strips are really irrelevant to the question being asked.
The Section 106 agreement should be tied to the Planning Approval; the Council shouldn't even issue the Approval Notice until the S106 has been signed, so if they've done their job right, you don't yet have Planning Approval - you have a recommendation to Approve, which will become an Approval when the 106 is signed and the Approval Notice is issued.
The implication of this is that you can refuse to sign the 106 and make an appeal on non-determination of the Planning Application, citing the unreasonablness of the S106 negotiations as contributory factors.
BUT be careful... as a businessman, you might not like the legalised extortion of the Section 106, but it IS legal. Provided they have gone through the correct process in setting levels of contributions generally, and have applied these agreed levels of contributions correctly to your application, you will stand about as much chance of re-negotiating them as you would appealing to the tax office for a lower rate of income tax!
I'd need to see the wording of both the draft planning approval notice and the draft S106 agreement to offer any more detailed advice; I'd suggest that you engage a Planning Consultant or a lawyer specialising on Planning Law to take things further, though.
The Section 106 agreement should be tied to the Planning Approval; the Council shouldn't even issue the Approval Notice until the S106 has been signed, so if they've done their job right, you don't yet have Planning Approval - you have a recommendation to Approve, which will become an Approval when the 106 is signed and the Approval Notice is issued.
The implication of this is that you can refuse to sign the 106 and make an appeal on non-determination of the Planning Application, citing the unreasonablness of the S106 negotiations as contributory factors.
BUT be careful... as a businessman, you might not like the legalised extortion of the Section 106, but it IS legal. Provided they have gone through the correct process in setting levels of contributions generally, and have applied these agreed levels of contributions correctly to your application, you will stand about as much chance of re-negotiating them as you would appealing to the tax office for a lower rate of income tax!
I'd need to see the wording of both the draft planning approval notice and the draft S106 agreement to offer any more detailed advice; I'd suggest that you engage a Planning Consultant or a lawyer specialising on Planning Law to take things further, though.
Edited by Sam_68 on Friday 13th July 08:32
TimCrighton said:
You may be able to claim that the established use of the land as your access proves that its of no intrinsic value to the council - although this may be a difficult one to prove. If you knew they owned it, but used it anyway its a different thing all together.
Valuing ransom strips is a difficult business, I've just done one for a 12 plot development and we ended up having to pay out £150,000 for a 0.01 acre piece of land - but the value in the site was in the access and without its worthless. If a landlocked piece of land is worth say £50,000 as effectively 'garden value' but supposing it had right of access it was worth £500,000 as a building plot - how much is the access worth - some would argue £450,000... In reality its not quite as simplistic as that but I think you get my point.
Incidently does it have permission for a car park? If so the council must have historically granted access as something is a pretty useless car park if you can't get to it?
I would be tempted to consult a really hot property lawyer - I could suggest a couple if you need. Any help I can offer I'm more than happy
I thought there was some case law re: landlocked sites. Though I expect it depends upon how the site had become land locked.Valuing ransom strips is a difficult business, I've just done one for a 12 plot development and we ended up having to pay out £150,000 for a 0.01 acre piece of land - but the value in the site was in the access and without its worthless. If a landlocked piece of land is worth say £50,000 as effectively 'garden value' but supposing it had right of access it was worth £500,000 as a building plot - how much is the access worth - some would argue £450,000... In reality its not quite as simplistic as that but I think you get my point.
Incidently does it have permission for a car park? If so the council must have historically granted access as something is a pretty useless car park if you can't get to it?
I would be tempted to consult a really hot property lawyer - I could suggest a couple if you need. Any help I can offer I'm more than happy
There is case law that helps the valuation appraisal of the land - which is why its not quite as simple as effectively saying its the difference in value between a landlocked site and a site with access.
I apologise if I've confused the issue with mentioning ransom strips - the way I read it he was trying to negotiate access to a site? I've only ever encounted S106's as, generally speaking, infrastructual improvements particularly as it appears the land is owned by the local authority? The negotiation of the ransom strip wouldn't typically be part of the S106 would it?
I apologise if I've confused the issue with mentioning ransom strips - the way I read it he was trying to negotiate access to a site? I've only ever encounted S106's as, generally speaking, infrastructual improvements particularly as it appears the land is owned by the local authority? The negotiation of the ransom strip wouldn't typically be part of the S106 would it?
TimCrighton said:
The negotiation of the ransom strip wouldn't typically be part of the S106 would it?
No, it wouldn't.We need more details, but I'm assuming that the 106 might be for improvements to the vehicular access across Council land, rather than the actual sale of the ransom strip, though. Obviously if this access was an adopted highway, the improvements would be dealt with by a 278 agreement with the Highways Authority for off-site highways works, but if it's simply some form of metalled surface (or dirt track!) across Borough/District/City Council land, then it's easily conceivable that they would demand money to facilitate its improvement by means of a Planning 106.
If the OP is looking for accurate free advice, he needs to give us full, clear details of both the draft planning approval and 106 terms, though.
TimCrighton said:
There is case law that helps the valuation appraisal of the land - which is why its not quite as simple as effectively saying its the difference in value between a landlocked site and a site with access.
I apologise if I've confused the issue with mentioning ransom strips - the way I read it he was trying to negotiate access to a site? I've only ever encounted S106's as, generally speaking, infrastructual improvements particularly as it appears the land is owned by the local authority? The negotiation of the ransom strip wouldn't typically be part of the S106 would it?
O/T but Tim, did you get my mail?I apologise if I've confused the issue with mentioning ransom strips - the way I read it he was trying to negotiate access to a site? I've only ever encounted S106's as, generally speaking, infrastructual improvements particularly as it appears the land is owned by the local authority? The negotiation of the ransom strip wouldn't typically be part of the S106 would it?
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