January 10, 20206 yr I am musing a few things about my site, and the idea of doing a joint venture with a Developer/builder has popped into my head. A bit of background, if you don't know my site i have permission to build two additional houses either side of my existing house, as below. The two proposed houses are the same, and for this example lets assume when they are built they are worth £550k each, and have a build cost of £300k each. My thoughts of the joint venture are to use the plot of house 1 as a part payment to the to the developer/builder for the build costs of house 2 (i.e they get it for nothing). Assuming a 20% gross profit target for the developer/builder (20% of £550k = £110k) that leaves £140k as a partial payment for the house 2 build. To supplement the £140k we 'find' £160k to make up the £300k build cost of house 2. In this scenario all are built at the same time, and once all finished we end up living in the proposed house 2, and sell / rent the existing house, and the builder sells house 1 making profit on the build of both houses. We would probably move out of the existing house and rent elsewhere while the main / noisy works were going on. hair brained scheme or feasible? surely there plenty of holes and risks in this way forward but it may suit our circumstances. Edited January 10, 20206 yr by Moonshine
January 10, 20206 yr Very Feasible As long as you factor in the tax you and he will pay I would build full time if I could nail down another plot or two
January 10, 20206 yr and yours is completed before his -titles do not change hands till yours is done and you happy that you got what you agreed needs a contract for sure and independent surveyor for judgement of fact and timescale -with penalties if he goes over time by too much Edited January 10, 20206 yr by scottishjohn
January 10, 20206 yr 1 hour ago, nod said: Very Feasible As long as you factor in the tax you and he will pay I would build full time if I could nail down another plot or two you know what I,m going to say .LOL
January 10, 20206 yr Author 6 minutes ago, scottishjohn said: and yours is completed before his -titles do not change hands till yours is done and you happy that you got what you agreed needs a contract for sure and independent surveyor for judgement of fact and timescale -with penalties if he goes over time by too much Good suggestions, though i am not sure how holding onto the title would work and my CIL liabilities for that plot, it would be easier to hand over the title and the CIL liability.
January 10, 20206 yr 3 minutes ago, Moonshine said: Good suggestions, though i am not sure how holding onto the title would work and my CIL liabilities for that plot, it would be easier to hand over the title and the CIL liability. as long as you can find a way in the contract that he has to finish yours before finishs his and in a timescale that you can live with if you going to be renting or maybe you advertise the other plot now and see if anyone is willing to make your day do you have a partner in mind ? Edited January 10, 20206 yr by scottishjohn
January 10, 20206 yr It may be best to sell the unwanted plot to a developer or self builder and to contract another builder to do your self build. You can include a timescale in the sale contract.
January 10, 20206 yr Author 5 minutes ago, scottishjohn said: maybe you advertise the other plot now and see if anyone is willing to make your day do you have a partner in mind ? If i put one plot on the market i know it would probably get a lot of interest, as a plot with outline permission for a smaller house (half the size) within 500m of mine sold last year with 10+ interested parties. A few local developers that i know professionally through work, meeting with them next week. One of them is coming to the end of a build of a block of flats for an acquaintance. 3 minutes ago, Mr Punter said: It may be best to sell the unwanted plot to a developer or self builder and to contract another builder to do your self build That is another option, though if its all done through one party i figure that all the ground works and disturbing work could be done at the same time, and we would only have to be away renting for a limited time.
January 10, 20206 yr 4 hours ago, scottishjohn said: you know what I,m going to say .LOL Yep Getting there
January 11, 20206 yr 18 hours ago, Moonshine said: That is another option, though if its all done through one party i figure that all the ground works and disturbing work could be done at the same time, and we would only have to be away renting for a limited time. There is no reason that the ground works need to be particularly disturbing and you certainly should not need to move away. Because the plots are either side of your house they will be done individually in any case. Things like machines left idling, reversing alarms, nail guns, multi tools and impact drivers create a fair bit of noise but you can introduce some site rules to make it more tolerable.
January 11, 20206 yr I would just sell plot 1 to a developer. By all means suggest he quote to build plot 1 for you as well but you want him to bid against other builders to be sure you get best deal. Remember that to avoid CGT plot 1 would have to be part of your PPR when you sell it. The CIL would be down to him. Plot 2 woukd only be exempt from the CIL if you live there for three years. Remember you and the builder will have different objectives. He will be trying to build plot 1 as cheap as possible. You may prefer a better build quality? If you go this route you should probably get the planning permission split. Otherwise you can both become liable for each other failing to meet planning conditions. Eg your house could be non compliant with PP because he is in breach.
January 26, 20206 yr Author 6 hours ago, Jonny said: Just interested in general plans, design spec and location. It's in the south west but not going to give planning reference.
January 26, 20206 yr That’s fair enough, probably just me being nosey! More details are always helpful though! Edited January 26, 20206 yr by Jonny Spelling
Create an account or sign in to comment