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Building A Btl - Wise?

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A relative of mine has some land for which he has received outline planning permission. He has no one in his family who is looking for a house in that area - his children have moved away to other areas with work, but may come back in later life - 20+ years.

He is adamant that he is going to build this property and maybe let it out. I'm not so sure this is a good decision as currently there is no need for the property, the land has agricultural value, and his build may not fulfil the needs of his children if/when they decide to return.

So he is considering building a BTL on the land in order to have it to pass down to his children. I think he would be better not building now. The property would be in the country in an area of low employment, but scenic region. Holiday rentals in the same region have not been faring well recently.

Can anyone on here provide an opinion as to what other options he has?

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Unless your relative has experience in the building trade, then the project of building a house may turn out to be a lot more time consuming and expensive than initially thought.

A plot with planning permission is a lot more valuable than agricultural land. So the easiest way to lock in this higher value is just to sell it.

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First, from what you say, he already owns the land. So no big borrowing costs. Second, if there is outline pp THEN when plans passed for a specific dwelling , the agricultural value of the plot will assume a much higher development land value. All the work to get that should not be watsed. If you do nothing it will lapse. You do not know that at a different time, such consent may be refused under alternative policies in rural zones.

One option could be to obtain the full consent, or even without, to sell to a builder. He could then invest the sum in something else. Depeneding on the land situation that may not be feasible or may incur a charge to tax.

If he wants to build himself/have built, then the cost of a building is nothing compared to development land. The question then remains as whether you can rent in this remote spot you don't mention. Is there any demand? If not then you may have a white elephant unless it is simply built for sale and that may take 0-2 years in the current climate, for remote places. Rental agents will tell you. Prob best to see some and say you want to rent at that location and see if they can demonstrate a demand. Are there any agricultural folk who need to rent around there long term?

If the answers to these suggestions are all negative, then the development is doomed from the start. You don't want to end up paying council tax for an empty property which cannot be let or sold easily.

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He does have exp in bulding, but I believe my relatives issues are more to do with him building a property now which noone in their family needs or wants.

From briefly speaking to them about this they don't want the property as it quite close to them - and not remote from the main family home. I think if it was 'out of sight' it may be a different issue with them.

Is there a chance of the getting the OPP renewed without having to pursue along them building line? In terms of planning aplications I don't feel there will be many more in this location due to lower population numbers.

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He does have exp in bulding, but I believe my relatives issues are more to do with him building a property now which noone in their family needs or wants.

What age are they? Do they seriously believe that this is good investment? So they want to invest money into an illiquid asset class. With that asset class currently experiencing a severe declining in value. And they have no accessment of the demand/return that their investment is likely to acheive?

Do they know that rates are going to be charged on empty property at the end of this year?

Can you persuade them to send me a few thousand quid and I'll look after it for them :D

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What age are they? Do they seriously believe that this is good investment? So they want to invest money into an illiquid asset class. With that asset class currently experiencing a severe declining in value. And they have no accessment of the demand/return that their investment is likely to acheive?

Do they know that rates are going to be charged on empty property at the end of this year?

Can you persuade them to send me a few thousand quid and I'll look after it for them :D

:D

I was thinking the same. They don't think it is a good investment - their father wants to build it as an inheritance gift for one of his kids. The main issues are they don't need it and that it right on their doorstep so it could not be sold as they'd have no control over their neighbours!

None of it rings true to me but it is their decision. They were asking me about it as I'm in process of buying and know 'a bit' about the market. I can't see it being a success. They will be able to build it cheaply enough but it is the maintenace, running costs, rates, and risk associated with renters which I would worry about for them. I am aware of rates relief being abolished at the end of this year, but has it been confirmed or in discussion?

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The simple thing is to obtain reserved matters for the permission he has and construct the foundations to legally hold the planning permission. Then whichever of his ungrateful relatives can, if they so wish invest the money to build the house at a later stage.

There is no planning method to extend a planning permission any more. So you either perform a legal commencement or allow it to lapse.

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The simple thing is to obtain reserved matters for the permission he has and construct the foundations to legally hold the planning permission. Then whichever of his ungrateful relatives can, if they so wish invest the money to build the house at a later stage.

There is no planning method to extend a planning permission any more. So you either perform a legal commencement or allow it to lapse.

Question.

Are completion notices coming in whereby a commenced development can be deemed to be complete so as to trigger Vacant Rating?

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Question.

Are completion notices coming in whereby a commenced development can be deemed to be complete so as to trigger Vacant Rating?

A legal commencement of development can be as little (in theory)as the laying first foundation block, as long as any and all pre-conditions are satisfied. I would advise that the foundations and even sub floors are completed to both remove any doubt of commencement and to make safe and protect the works.

Whilst rates will be chargeable on vacant property that property has to be habitable. There will be many disputes as to the legal definition and test of 'habitable' for rating purposes. However I would be of the opinion that items such as walls, roofs etc may well fall into this requirement.

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A legal commencement of development can be as little (in theory)as the laying first foundation block, as long as any and all pre-conditions are satisfied. I would advise that the foundations and even sub floors are completed to both remove any doubt of commencement and to make safe and protect the works.

Whilst rates will be chargeable on vacant property that property has to be habitable. There will be many disputes as to the legal definition and test of 'habitable' for rating purposes. However I would be of the opinion that items such as walls, roofs etc may well fall into this requirement.

My experience is in the commercial sector whereby an incomplete development can be certified as being capable of completion within a certain time and vacant rating would kick in at the end of that time even though building may have stopped.

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My experience is in the commercial sector whereby an incomplete development can be certified as being capable of completion within a certain time and vacant rating would kick in at the end of that time even though building may have stopped.

Everything is capable of completion. The question was "is it capable of occupation or habituation". I cannot see any situation where a house, at foundation stage, could be valid for rates.

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Everything is capable of completion. The question was "is it capable of occupation or habituation". I cannot see any situation where a house, at foundation stage, could be valid for rates.

I felt pushed to read the Legislation.

Where a property is such "that the building can be reasonably be expected to be completed within 3 months the Dept. may serve a completion notice" on the owner. Until now residential buildings were not included in this Provision. Are they now to be included?

It may be in your interests to check this out if only for peace of mind.

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I felt pushed to read the Legislation.

Where a property is such "that the building can be reasonably be expected to be completed within 3 months the Dept. may serve a completion notice" on the owner. Until now residential buildings were not included in this Provision. Are they now to be included?

It may be in your interests to check this out if only for peace of mind.

After a quick look the only place I could find the text you mentioned was in the 'NON-DOMESTIC RATING LAW

England and Wales'. The Non-Domestic bit appeals to me. If you have a link to something different I would be very keen to follow this up. I will be astonished if this were to apply to domestic property.

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After a quick look the only place I could find the text you mentioned was in the 'NON-DOMESTIC RATING LAW

England and Wales'. The Non-Domestic bit appeals to me. If you have a link to something different I would be very keen to follow this up. I will be astonished if this were to apply to domestic property.

Re non domestic property it is in the Schedules of the Rates Order (NI) as amended. 8a or 9a as I remember. I have not had time to look for the residential amendments that are coming in. Maybe next week.

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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      • up 5%



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