simplepimple

Garden Plot offer price guidance

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I've viewed a small garden plot with outline planning permission for a tiny - 55 square feet - 2 bed bungalow in a cheapish area. 

 

It's tricky working out completed value price as the other houses in the road are 2 bed semis - there are 2 other bigger bungalows which have probably gone on previous garden plots. 

 

I've read a lot of advice on the forum about all the things to watch out for and I'm happy to go ahead. I'll be managing contractors for the self build and probably stay there for a couple of years. I have limited finance but enough cash for the land and roughly 75% of the build with the idea of a small mortgage to finish off. 

 

I was planning to make a low offer today to test the water but over the weekend the estate agents tell me there has been a below asking price offer. Of course they're not going to give me any hints. 

 

Any ideas as to an inspired next step? 

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You are probably in the best position to work out the completed value which will be between the semis and the bigger bungalows.  I think you mean either 55 square metres or 550 square feet.

 

You may be able to build this for £110k.

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Location of the plot might help, and surely you mean 55 square metres?

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I can see how much I need this forum!

 

You are right - 55 sqm.  I'm not quite small enough to live in 55 square feet. 😉

 

There's not a lot of property sold in the last year to compare -  plot is listed at 70k - other semi's sold nearby around 160k though there are a couple needing renovation for 130k but an extended with large garden semi sold in the same road this year for 216k. 

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55 m2 is small and actually doesn't meet my local authorities GIA requirement for a 2 bedroom / 3 person flat (let alone a house).

 

Going on the plot price and the £2k pm2 build cost listed above, that's £180k.

 

How much have the other bigger bungalows sold for, how many bedrooms do they have and what is their m2?

 

Do you think that its worth the effort and stress to build something that is going to cost you ~£180k (+ legal and associated costs)?

 

Could there be an option of how to get your best return for the ~£180k, is to buy one of the semi's needing renovation (with a decent garden) and do it up, maybe do a loft conversion / extension?

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If you look on rightmove you can maybe work backwards to get a rough per m2 sales value then see how that compares to your estimated costs for developing the site - remember to allow for a good contingency in all your figures and you'd want to allowing a good "profit" figure too, if you are planning on selling soon, also allow a figure for getting a warranty for the build

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Thank you for your replies everyone. Yes I agree it is very small however I'm hoping to amend the plans with an additional bedroom and en suite in the loft or do this under permitted development later. 

 

Thank you Moonshine - I'll check out the local GIA requirement as they may help when I submit a full planning application. I can't buy a more expensive property now as I only have the cash from the sale of my previous one and am not working yet so no mortgage ability but that will change in the near future - can't get a job till I've worked out where I'll be living. 

 

I have a well trusted and economical builder so build costs will be less than 100k as long as there are not too many unforeseen circumstances.  

 

The other concern is that the plot is on the corner of the road - with a sewage system running along the front of all properties (and the new build) but then the manhole covers are in front of the other houses running at a 90 degree angle so its likely the corner connection might be right beneath or very close to the proposed property. I'm currently researching getting more info from the sewerage supplier but does anyone have a rough figure of the extra expense this may incur? 

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Service connections can add a surprising amount to some builds. If you have a search of the forum you will see several posts about the challenge / cost of getting electric, water etc connected so don’t under estimate these, as well as council fees, architect fees, structural engineer fees etc. These can add up to quite a lot. On the surface it doesn’t quite add up if it will cost you 70k + 100k + other fees if you can buy a (presumably larger) semi for 160k. 

 

If you could do a lot of the work yourself I would say maybe give it a go but if you are reliant on trades you may find that you have easily spent more than its final value. 

 

 

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I've been browsing every post mentioning sewerage - my offer has to go in ready for tomorrow. 

 

I hear what you are saying newhome - I've had a long term dream to build my own since my parents did when I was a teenager and if I don't do it now I'll be too old. 

 

Though I appreciate now is the easy bit and if I go down this road there will be plenty of challenges along the way - including keeping the cost to a minimum. My mum built her own extension (actually learning how to lay the bricks) when she was in her 60's so perhaps I've inherited good genes! 

 

The builder I'm using has completed one with a similar footprint (but no unexpected difficulties) for less than 75k. 

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With a bit of luck, your water company may have a plan of the pipe runs that they can email you.  Best give them a ring first thing and see if they can help, but also best be prepared that they won't have plans or won't be able to let you have them in time.

 

You might be able to take an educated guess as to where the sewer runs by checking the manhole covers, as there shouldn't be any bends between them, but if you can get decent information from the water company that would be best.

 

We were a bit surprised to find that, despite both our neighbours having main drainage, it was going to cost us around £14,000 to be connected to the nearest sewer and another £24,000 to be connected to mains water.  Needless to say we drilled a borehole for water and installed a sewage treatment plant in the corner of the plot...

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I've contacted the sewage company who directed me to the dig dat site which is a good resource and I now have a plan of the sewerage system and all is ok. Phew! 

 

Offer has been accepted and I've just started my costs spreadsheet and lengthy to do list. 

 

I'm hoping it'll be ok to continue to post. 

 

Next step - find a good conveyancer. 

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Good news!  It's always a relief to get things like this out of the way early on, as it could be a heck of a shock later if you found there was a potential high cost problem to solve.

 

Please let us know how things go.

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What about underground cables? Any substations nearby?  Know anyone with a CAT scanner?

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Thanks JS - I'm sure I'll be back for top tips and advice along the way. 

 

No substations Pro - I don't know anyone in that area at all yet but will check out where the cables might be - I've looked at utility suppliers and gained an idea of connection costs and probably going to have a static there for the duration of the build as my builder doesn't live nearby either. 

 

It's been a long time since I've had my very own place.... and a while to go yet.... but I'm so looking forward to the huge sigh of relief once it's all done and I'm in - surely by Christmas 2019. 🤶🎄 😊

 

 

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On 12/11/2018 at 10:48, simplepimple said:

 

Any ideas as to an inspired next step? 

 

Before you go into Planning-Cycle mode, just check whether the existing PP removes Permitted Development rights.

 

It may be that the existing design + a permitted extension afterwards could be a better option than a planning battle.  

 

Ferdinand

 

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That's a great check to do - thank you Ferdinand - I'm also looking into the CIL which will be around £3110 on 55sqm in a low zone area but I'd be more if my plans included a loft room at the time of planning rather than afterwards. 

 

 

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2 minutes ago, simplepimple said:

That's a great check to do - thank you Ferdinand - I'm also looking into the CIL which will be around £3110 on 55sqm in a low zone area but I'd be more if my plans included a loft room at the time of planning rather than afterwards. 

 

 

 

Self-build is exempt from CIL, but you need to follow the procedure carefully.

 

F

 

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Well that's weird as the planning guy told me I will have to pay it even as a self build. More research needed. 

 

Will it say somewhere on the outline planning permission about any constraints regarding permitted development? 

 

It has had a two storey refused previous but they made it smaller and relocated it on the site so it was more inline with the other houses in the street. 

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I think it's this bit.... 

 

Notwithstanding the provisions of the Town and Country Planning (General Permitted Development) Order 2015 or any Order revoking or re-enacting the said Order, no development of any kind specified in Parts 1 & 2 of Schedule 2 of the said Order shall be carried out unless otherwise agreed in writing with the local planning authority. (Parts 1 & 2, refer to external alterations and extensions, hard surfacing, means of enclosure etc.).

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