Staring over the precipice

[edsr]

Hi All,

 

New to this forum, and although I have some experience across the construction industry it's not currently my main job and am embarking on purchase of around 1.5acres on the edge of town.

 

This started as a pipe dream to convert a covered concrete structure into a subterranean house for my family, but having been unable to find the funds and not wanting to give up, I formed a consortium and we are in the process of buying the land with a view to developing it in stages (and then possibly realising the dream).  

 

Getting from this stage, to shovel-ready plots is something I have never done before, so it should be interesting:

 

- Awkward levels

- Overages to current owner

- Easements crossing the site

- HV Cables crossing the site

- Footpath dissecting the site(s), with old and unclear covenants for access)

- No planning, but pre-app says 'potential'

 

Look forward to your comments as things progress!

 

Thanks in advance,

 

Ed

[ToughButterCup]

My signature line says it all. (thanks to @TerryE)

Good luck 

Ian 

[Ferdinand]

Starter for 10:

 

 

[Ferdinand]

1 hour ago, edsr said:

Hi All,

 

New to this forum, and although I have some experience across the construction industry it's not currently my main job and am embarking on purchase of around 1.5acres on the edge of town.

 

This started as a pipe dream to convert a covered concrete structure into a subterranean house for my family, but having been unable to find the funds and not wanting to give up, I formed a consortium and we are in the process of buying the land with a view to developing it in stages (and then possibly realising the dream).  

 

Getting from this stage, to shovel-ready plots is something I have never done before, so it should be interesting:

 

- Awkward levels

- Overages to current owner

- Easements crossing the site

- HV Cables crossing the site

- Footpath dissecting the site(s), with old and unclear covenants for access)

- No planning, but pre-app says 'potential'

 

Look forward to your comments as things progress!

 

Thanks in advance,

 

Ed

 

You do not mention Planning Gain, or S106.

 

That could be 20% or more of your "land value with Planning Permission". Crucial will be whether you have to pay, and with what phasing.

 

Nor do you mention "Local Plan", or your plot's status.

 

You need an intimate knowledge of how your Council approaches serviced plots in terms, of Outline and Detailed Planning, Obligation, and Financial Phasing. They may well not have a policy yet, so you need to help them create one that works for all sides.

F

Edited April 16, 2019 by Ferdinand

[ToughButterCup]

17 hours ago, edsr said:

[...]

not wanting to give up, I formed a consortium and we are in the process of buying the land with a view to developing it in stages (and then possibly realising the dream).  

[...]

 

Ed, I knew there was something I wanted to tell you.... These people also formed a consortium  They are very approachable, friendly sometimes garrulous people.   Idea?

[Triassic]

17 hours ago, edsr said:

Getting from this stage, to shovel-ready plots is something I have never done before, so it should be interesting:

 

At what stage will you exit stage left? You could simply do all the leg work in gaining planning permission for the site, or you could go the whole hog and build each house for sale. If it were me I’d probably take the easy option and sell self Build plots, in that way you get out sooner, Gravenhill style !

 

You didn’t say where these plots are? 

Edited April 17, 2019 by Triassic

[Oz07]

Old Severn Trent site by any chance?

[Mr Punter]

A very interesting idea @edsr

Regarding how this is structured, have you formed a ltd co with shares for each potential self builder?

Already allocated plots?

Worked out SDLT etc?

What if you don't gain pp or shareholders want out or die?

[edsr]

On 17/04/2019 at 14:40, Mr Punter said:

A very interesting idea @edsr

Regarding how this is structured, have you formed a ltd co with shares for each potential self builder?

Already allocated plots?

Worked out SDLT etc?

What if you don't gain pp or shareholders want out or die?

Yeah Ltd with shares and a shareholder agreement. That’s a biggie.

And our view of planning, due to location of site, it’s not a question of ‘if’ but ‘when’ - we are taking a long term view on this site.

[edsr]

On 17/04/2019 at 06:40, Triassic said:

At what stage will you exit stage left? You could simply do all the leg work in gaining planning permission for the site, or you could go the whole hog and build each house for sale. If it were me I’d probably take the easy option and sell self Build plots, in that way you get out sooner, Gravenhill style !

 

You didn’t say where these plots are? 

That’s a good shout. I believe there is government funding available in the form of low interest loans to get the land turned into ‘shovel ready’ plots which is something we have discussed. 

[edsr]

On 16/04/2019 at 13:43, Ferdinand said:

 

You do not mention Planning Gain, or S106.

 

That could be 20% or more of your "land value with Planning Permission". Crucial will be whether you have to pay, and with what phasing.

 

Nor do you mention "Local Plan", or your plot's status.

 

You need an intimate knowledge of how your Council approaches serviced plots in terms, of Outline and Detailed Planning, Obligation, and Financial Phasing. They may well not have a policy yet, so you need to help them create one that works for all sides.

F

Thanks Ferdinand,

 

I did a lot of research into this back at pre-app stage but we’ve just appointed some planning consultants that come recommended from several different contacts and due to the overages, these costs aren’t entirely bourne by us (at least that’s one way of looking at it!)