Contact →

Tag: land

  • HPH170 : The process of buying land – with Michael Campbell from Spratt Endicott Solicitors

    HPH170 : The process of buying land – with Michael Campbell from Spratt Endicott Solicitors

    Michael Campbell from Spratt Endicott Solicitors explains the key stages that need to take place in order to buy a piece of land for a self build project. Ben also chats through some of the challenges he faced during his plot search and subsequent land purchase.

    Interview with Michael Campbell

    Michael Campbell is an associate solicitor at Spratt Endicott and he specialises in residential development.

    Previously he spent nearly twenty years at a national house builder, as their in-house lawyer, dealing with acquisitions, sales, affordable housing sales, infrastructure agreements, planning agreements, and anything that is required to get a site from a piece of land to a finished housing development.

     

    There are four important aspects to a land purchase

    At a basic level there are four areas that must be clarified:

    1. Title
    2. Access
    3. Services and drainage
    4. Planning

     

    Specific searches help gather information about the plot

    There are numerous searches that help establish if there are any issues relating to the land.

    These include things like a local search, drainage search, chancel repair, highways search, etc.

    If any problems are flagged up from these searches, then you could investigate potential measures to reduce risk (such as taking out insurance against that issue) or simply halt the purchase.

     

    The title must allow access to the adopted highway

    When buying a piece of backland (behind a house, for example), be certain that the title deeds allow access from the adopted highway.

    If a covenant exists on the title that restricts access to one dwelling and there is already a dwelling there, then the new dwelling would be in breach of the covenant.

    Michael says this covenant is fairly common.

     

    An ‘absolute’ title is the best title

    There are two classes of title: absolute and possessory.

    With possessory title, there is always the risk that someone with a better title than you will be able to come along and claim the title to the land.

    Michael continues: “You would normally back-up your possessory title with an insurance policy so that, in that scenario, insurance would either cover compensation to the person who’s been ‘dispossessed’ of their land or alternatively would be paying you back the costs that you’ve incurred in purchasing and whatever development you may have carried out at that point on the land.”

     

    Some parcels of land are yet to be registered

    In England, it only became compulsory to register land in 1987.

    So if land hasn’t changed hands since that point then it will still be unregistered.

    Michael comments: “If title deeds get lost but somebody believes they own a parcel of land, they will submit their statutory declaration to say ‘I’ve always used this piece of land’ and at that point, it becomes registered with possessory title.”

    After 12 years, you can apply for it to be then upgraded to ‘absolute’ title on the basis that nobody has made any claim better than your claim to be the owner of that parcel of land.

     

    Insurance is usually available, but at a cost!

    Generally speaking Michael says insurance is available to cover various circumstances that may arise.

    “Like all insurance, it’s based on a value. A Ferrari is more expensive than a Mini to insure. It’s the same principle with a house. The bigger the house, the greater the risk, the greater the insurance.”

     

    An overage means a previous owner will benefit from future development

    Overage occurs where somebody selling a piece of land realises there could be potential for development in the future. As such, they would require an uplift in the value of that land once it has gained planning permission (as agricultural land is worth far less than land with planning permission for dwellings).

    There’s no limit on how long an overage can last for, so if decades have passed then this uplift could even go to the successor in title.

     

    Another common covenant might require approval from previous or current owners

    Michael says that if someone is selling a piece of land they may put in place a covenant which requires the plans and drawings to be approved.

    This is common when someone is selling a garden plot but they intend to continue living in their existing house. It gives them a degree of control over the new scheme.

     

    A solicitor should bring clarity to the process

    While most people could pick up a title and understand the basics, a solicitor would still be needed to confirm their interpretation is correct.

    The clarity gained from hiring a solicitor should provide sufficient information either to continue or halt the land purchase.

     

    There could be additional costs during the planning process

    Michael says that while build costs are relatively straightforward to work out, sometimes people don’t appreciate the costs associated with planning.

    “You often will need supporting documentations. For example, an ecology survey, perhaps a survey for contamination, ground investigations, all sorts of different surveys, depending on the nature of the site. And those are not cheap.”

     

    Generally a deposit is paid when contracts are exchanged

    As part of the documentation, your solicitor will put together a contract which states the seller’s name, your name, the details of the property, the purchase price, and whether there’s anything else included within the sale.

    Once signed and a completion date is added, the contract is exchanged. And in most cases this is the point where the deposit is due.

     

    Completion is when the balance is paid and the land changes hands

    Completion is the official date when the land becomes yours.

    At that point, the seller will ensure that the land has got vacant possession. Your solicitor will hand over the purchase monies for the balance of your purchase price and completion then takes place at that point.

     

    Once contracts have been exchanged there’s no going back without a penalty

    Once you exchange contracts, you are contractually bound. So, if you wish to withdraw, unless the other party is agreeable to you withdrawing then compensation would be payable.

     

    An ‘average’ land purchase transaction might take three months

    There’s no set rule to how long a purchase will take to go through. Every transaction is different. However, Michael says three months is typical.

    “You might think it’s a nice, straightforward transaction but, for example, if something arises on title where you have to think about an insurance policy, that may take a bit of time to sort out to everybody’s satisfaction.”

     

     

    Factor in the additional costs

    Although the land purchase will be the major cost, don’t forget:

    • Stamp duty land tax (which will be based on the value of the parcel of land)
    • Solicitors’ fees
    • Land Registry fee (which will be based on the value of the parcel of land)
    • Search fees (the cost of these may vary slightly between local authorities)

     

    Hire a solicitor who carries out land transactions every day

    While a general practitioner can probably handle this work it is a good idea to engage a solicitor who does this as a matter of course.

     

    Find out more

    Visit the website of Spratt Endicott Solicitors

    Follow Spratt Endicott Solicitors on Twitter

    Transcript

    Download a transcript of the interview with Michael Campbell.

    Please connect with me

  • HPH154 : The challenges of building a new home in a rural community – with Jeremy Harris

    HPH154 : The challenges of building a new home in a rural community – with Jeremy Harris

    Jeremy Harris, a scientist by background, wanted a low energy house for his retirement. He talks about the initial stages of his self-build project: finding a plot of land and obtaining planning approval.

    Jeremy Harris

    Interview with Jeremy Harris

    Jeremy Harris, a scientist by background, wanted a low energy house for his retirement. He first came up with the idea that he might like to build a house around ten years ago.

    It’s important to fully understand the beginning of the self-build process

    Jeremy found television programmes and magazines rarely touch on finding a plot, designing a house to fit that plot, and the people you have to employ to do all of that work. It can be very expensive, costing thousands of pounds for planning consultants, architects, building control, etc.

    Plots can seem very nice on websites but look nothing like the photographs in reality

    Finding a plot of land was extremely hard. The Harrises drove several thousand miles, visiting disappointing plots. They began by looking at what they wanted to build, but Jeremy concluded this was the wrong way round: first find a plot, then determine what type of house will fit on it.

    Having walked away from one likely prospect, by chance they found their plot of land 16 miles from where they were living. It was too overgrown to see properly and fenced so they couldn’t get into it, but looked like it might be exactly what they wanted: facing south (i.e. good solar access) and in a sheltered valley.

    There's a plot in there somewhere!
    There’s a plot in there somewhere!

    Buying a plot is not the same as buying a house – ensure services will be available

    When buying a plot of land a solicitor can tell you if there’s a public footpath on it but won’t find out if you’ve got water, mains electricity, mains sewage or even if the boundaries are in the right place.

    Services in rural areas are often stretched to the limit. Jeremy had to ask the relevant utility companies if they could supply:

    1. Electricity? Fortunately there was plenty of power on their doorstep.
    2. Water? Companies have a statutory duty to supply water but the issue is cost. They’d have to dig up a lane for 140 metres and although Jeremy shopped around (anybody with a licence can do the digging), the minimum cost was still £24,500.
    3. Mains sewerage? There’s no statutory requirement to supply this and the cheapest the water company could provide it was £14,800.
    4. A new phone connection? Telecoms companies see self-builders as developers. If there isn’t enough capacity, they can charge whatever they want to lay a new multi-cable.

    As services would cost so much, Jeremy renegotiated the price accepted. The land hadn’t sold for eight years so he persuaded the vendor to knock off a substantial amount.

    Many building plots have boundaries in the wrong place where the Land Registry is concerned

    Plots of land don’t have registered boundaries as a rule. There was a boundary error affecting the Harrises’ plot meaning the house approved to go on it wouldn’t fit.

    The process for resolving boundary errors is complex and time consuming. It’s up to the vendor to do it, so you have to persuade them to spend money with Land Registry to get title plans amended. This often affects adjacent houses, as well as your plot, involving lenders as they have a right on the title.

    A stumbling block can sometimes turn out to be an opportunity

    It took them a year to get their boundary error resolved, but this allowed time to plan the project properly.

    Jeremy wrote a brief with eight key design points but the architects he approached didn’t seem to understand the role of design with low energy houses. Looking further afield for a Passivhaus specialist was an option, but thinking the distance might make communication difficult Jeremy decided he’d design their house himself.

    So the year was productively spent:

    • Evolving designs for the house
    • Tracking down the local Openreach engineer who offered help at no cost, as Jeremy planned to dig trenches on the plot and an underground network would solve local problems with overhead cables and trees
    • Discovering a borehole was possible, at half the cost of mains water
    • Planning a sewage treatment plant, costing around £3,500; much cheaper than digging up the lane

    This avoided inflaming an existing situation with the neighbours, as the plot had a chequered planning history, and saved money too!

    The borehole
    The borehole

    Once the principle of development is established by an approval, it’s extremely difficult for planners to remove it

    The Harrises’ plot had planning permission for a little stone bungalow that they didn’t want. As the local authority had approved the principle of putting a house on the plot, their plan was to submit a new application.

    Areas of outstanding natural beauty, conservation areas and proximity to listed buildings put constraints on what you can build. For example, needing to have all the external materials approved, as was the case with Jeremy’s house.

    Good communication paves the way for a smoother planning application process

    In Jeremy’s area, seven objection letters result in the application being referred to a planning committee, where emotions come into play far more than planning law.

    A previous application for the plot resulted in 14 objections at Parish Council level and dozens of letters. To mitigate objections for their application, Jeremy spoke to every neighbour, sent them regular update newsletters and even Christmas cards.

    He also made scale models, enabling all interested parties to understand the design before the planning application went in. His wife could look inside the rooms to see whether they were big enough, and the neighbours could see what the house might look like in the landscape. And the scale model played an important part at the Parish Council planning meeting, where applicants aren’t allowed to talk.

    model-sw-view-small

    “We had several cases where objectors turned to supporters”

    Jeremy eliminated concerns by talking them through with neighbours:

    Genuine concernsWhat Jeremy did
    New house would overload the sewage systemExplained they were putting in a sewage treatment plant instead
    Height of the house might block views or cast shadowsUsed the 3D scale model to show that the house would be set into the hillside (3m down)
    Being overlooked in their back gardenUsed the model to show that the garage blocked the view (neighbour was also happy the garage protected their vegetable patch from the wind)

    Engaging with local people is important but Jeremy adds a caveat: be cautious and put your foot down if neighbours ask for too much; at the end of the day it’s your plot and your house.

    The Harrises got through the planning stage with no letters of objection at all, so the decision was down to a Planning Officer purely based on the law and planning policies for the area, and approval was granted.

    Transcript

    Download a transcript of the interview with Jeremy Harris

    Find out more

    Check out Jeremy’s blog on the project

     

    Please connect with me

     

  • HPH143 : Why I couldn’t build a house in 4 years – with Ben Adam-Smith

    HPH143 : Why I couldn’t build a house in 4 years – with Ben Adam-Smith

    Ben Adam-Smith reviews the key decisions that may have led to failing to build an energy-efficient home within his desired 4-year timeframe.

    The story

    Watch this video to get a refresher of the challenge Ben set himself in August 2016.

    Five decisions that could have impacted on the progress

    1. Spending two years doing research before starting my land search

    2. Not being prepared to relocate to available plots

    3. Not being prepared (or sometimes able) to pay over the odds

    4. Not managing to enlist a homebuilding coach (architect/builder)

    5. Not taking risks beyond a certain point

    Please connect with me

  • HPH127 : 5 ways to get proactive when looking for land – with Ben Adam-Smith

    HPH127 : 5 ways to get proactive when looking for land – with Ben Adam-Smith

    Ben Adam-Smith outlines 5 strategies for taking your land search into your own hands.

     

    The plot search so far

    I’ve spent the last 2 years looking for land and in this time have put in three offers. While I’ve missed out each time (to people who have bid over the value of the plot or property!) it does show that there are opportunities out there.

     

    Being flexible is the best way to find land

    My top tip – if like me you feel you’re stuck in a game of Snakes & Ladders – is to be willing to relocate. The chances are that if you can’t find land it’s because you’re close to a town or city. Therefore moving further away will give you a greater number of plots to consider and will probably get you more for your money.

    While it’s not for everyone – particularly if you want to be near family or you have a job keeping you in a specific area – it’s a decision that can really impact on the ease of finding land.

     

    5 ways to find land for a self build project

    All of these strategies require time and probably a lot of dead-ends, but you only need one yes! Also if you manage to buy land privately – even at market value – you are likely to make significant savings.

     

    1. Spread the word

    Recently I recorded a podcast on whether local knowledge can help you find land but there are some other people you should be telling first.

    If you’ve been in an area for some time, perhaps you already know a family member or friend who might sell you some land, so make sure you’ve told them (multiple times!). Even if they can’t help directly they are more likely to keep their eyes open for opportunities for you.

    You could also use social media to reach out. For example, I know a lot of local people in my area follow #Hertford. Obviously don’t get too desperate but it’s worth tapping into this stream.

    Finally, developing a relationship with local builders and architects could be worth it. You may need their services later anyway so this could be a good way of sussing them out too.

     

    1. Organise a leaflet drop

    Who said direct mail was dead! This is a game of numbers but it could bear fruit.

    Target areas that you know you like. Find a freelance designer on a website like Upwork or People Per Hour. We paid US$20 to get a simple leaflet created. If you’ve got the time you could distribute yourself. Ideally you want it to be the only thing coming through the door and not with a bunch of other flyers.

    Keep it short and sweet, playing up your credentials of being great potential neighbours. Given a choice between a developer buying off them or a quiet retired couple it may be an easy choice.

     

    1. Advertise locally

    With a tweak of the copy you’ve used for your leaflet drop you could put an advert in the local newspaper, where the demographic may be the older generation with the juicy opportunities.

    Other avenues to explore include TV screens in the Post Office or garage, and good old fashioned village notice boards.

     

    1. Contact the big landowners in your region

    Every area has some big landowners. You need to discover who they are and approach their estate departments. Perhaps technology or the market is forcing them to downsize or sell off some of their assets anyway.

    One example I came across is the big brewery in my area selling off a triangular piece of land at the back of some houses to a self-builder.

     

    1. Create the opportunity yourself

    This is perhaps the most time intensive and potentially lucrative of the lot. It involves detective work and getting used to identifying opportunities. Start to notice changes in your town and village. Did a garage repair shop close down when a mechanic retired and then three houses were built on the old industrial units. Or is there a classic infill on a row of houses.

    While Google Earth can be useful to assess an area, getting out on foot is most likely to give you a feel for the opportunities.

    When you see something you think could work, knock on the door and speak to the owner. If it’s scrub land or you’re unsure of the owner you can pay a small fee to the Land Registry to find out.

     

    *With all of these proactive methods, just make sure you have the necessary planning permission. A plot without planning permission is not a plot!

     

    Resources mentioned

    Rightmove

    Plotfinder

    Plotsearch

     

    Please connect with me

  • Why It’s So Hard to Find Land to Build a House On

    Why It’s So Hard to Find Land to Build a House On

    Ben discusses the frustrating reality of watching developers build thousands of uninspiring houses in his home town, while he struggles to find a single suitable plot on which to build his dream home.

     

    If you’re building a house in the Outer Hebrides, then you’re probably spoilt for choice when it comes to plots of land. But if, like me, you’re hunting for land in a place of greater demand, the job becomes much more challenging.

    (more…)