advice on some woodland i have my eye on..

[Dr.Green]

i had my eye on a piece of woodland in a very nice area next to mine - althou most trees are tpo'd and in a conservation area i thought maybe i could put in an application to use for recreation or even a small scale timber storage / mulch... or a small timber home

 

there are a few details in the information i am not sure about , i have listed them below , can somebody put it into english for me please

 

 

''''A purchaser will be asked to enter into an overage agreement where 50% of any uplift in value on granting of planning approval and where the land is either sold or developed will be due to the vendor, this to last for a period of 25 years.'''''

 

 

an application for a building has already been declined however applications for others things can be considerd .

 

its up for 25k - 1.5ac - the river derwent runs thru the bottom of the land , some cracking trout in there.

 

Riverside Wood, Rowlands Gill, Gateshead, Tyne and Wear | Northern England | Forests.co.uk

[Charlieh]

TPO woodland in a Conservation area and a 50% uplift on it, ouch its going to be hard work getting anything approved on a site that small and even if you do the previous owners are then going to sting you for it!

 

The 50% uplift means if you get planning on it and it increases the value of the plot they are entitled to 50% of the increased value of the property so if you got planning for a 250k house you would have to stand them 50% of the 250k!

[porky]

That means if you get planning permission on it you have to give the vendor 50%. I have seen that clause before.

If it's in a Conservation area planning will be very strict, even to store logs on, unless they have come from the site itself.

[Dr.Green]

probly belongs to somebody who already has enough money not to worry about an extra few quid in years to come... i could buy it - wait til im 55 when the 25year clause runs out then live in small timberhome then after most trees need to come down - such a shame its a nice spot even just to fish at- the hunt will continue , thanks for clearing that up for me

[renewablejohn]

I now dont bother with land which has an uplift. Why should you go through all the aggravation of securing planning permission and then have to give money back. Some of these uplift clauses are very vague. I nearly got caught out with some land which I was going to purchase to plant woodland on. The planting of woodland would have triggered the uplift clause and I would have been stung for another 300k.

[Marko]

TPO woodland in a Conservation area and a 50% uplift on it, ouch its going to be hard work getting anything approved on a site that small and even if you do the previous owners are then going to sting you for it!

 

The 50% uplift means if you get planning on it and it increases the value of the plot they are entitled to 50% of the increased value of the property so if you got planning for a 250k house you would have to stand them 50% of the 250k!

 

My understanding is that you would owe to the vendor 50% of the difference between what you paid and the marketable value of THE LAND if planning permissions were to be obtained within 25 years.

 

So using the same example, if you got planning for a £250k house then the plot value would rise from the £25k you paid to (say) £75k so you would owe them 50% of the difference which is £25k. Not the end of the world for a dream home?

[landrover 101]

 

 

''''A purchaser will be asked to enter into an overage agreement where 50% of any uplift in value on granting of planning approval and where the land is either sold or developed will be due to the vendor, this to last for a period of 25 years.'''''

 

 

an application for a building has already been declined however applications for others things can be considerd .

 

its up for 25k - 1.5ac - the river derwent runs thru the bottom of the land , some cracking trout in there.

 

Riverside Wood, Rowlands Gill, Gateshead, Tyne and Wear | Northern England | Forests.co.uk

 

 

The overage agreement if the phrasing is exactly reproduced above looks as if it only applies if you where to actually sell or develop rather than just gain planning

 

Which means you could put in for planning for something like a log store which will have a minimal impact on value

 

Put the log store up thus developing and increasing value as per overage agreement give them 50% of the couple of grand difference it makes

 

Overage agreement is then used and excersised and no longer applies then put in for a house and make a mint

Edited December 19, 2011 by landrover 101

[Dr.Green]

i think il take another look and investigate , thankyou

[John Russell]

It's my experience that it's always worth making an offer. But don't let the price they ask influence your offer; offer just what you think the land is worth to you.

 

The overage would not be payable unless you actually make a profit, when they will require 50% of the increase in the value just of the land. So it will be 50% of the difference between the value of the land as woodland (not necessarily what you paid for it!), and the value of the land for development at the time that planning is approved; payable when you realise the value (that is, when you sell it -- or move in). The value of anything built on the land is irrelevant.

 

My advice would be not to let any potential possibility of gaining planning consent to influence the price you offer. You're buying woodland and should pay no more than the going rate for woodland in that area.

 

Best wishes,

 

John Russell

Edited December 19, 2011 by John Russell

[John Russell]

is the 'uplift' only in relation to planning/building?

 

what if you just built a shed to store firewood?

 

or build a house with a value of 80k?

 

where would it end? a one off payment? or would they want dividends every year? what happens in recession? do they give you money back?

 

i would want to see the small print, and find a way to make it work.

 

There should be no concerns. What the agreement says is as much up to you as it is the vendor. Make sure you agree the deal and all the clauses and your solicitor writes it up properly (or checks it, if written by the vendor's solicitor) and you read it. Don't sign anything until you understand every last word of the agreement and you know what you're letting yourself in for.

 

As I said, the uplift is on the value of the land --only-- at the time the planning consent is gained, but not payable until the profit is made (make suer this is worded precisely in any signed contract). The value of the house or houses subsequently built on it is largely irrelevant, except in so far as it affects the value of the land (by which I mean that if consent is gained for 5, 3-bedroomed houses, that would uplift the value of the land more than, say, 2, 2-bedroomed houses).

 

Planning consent for a wood shed or store would not really increase the value of the land (in that the land would be then worth only the base value of the land + the value of the shed).

 

An other thing to bear in mind is that you are quite within your rights to make an offer without the, or with a modified, clause. So you could tell them "I'll give you your asking price, but without the overage agreement; or with a 25% overage agreement; or excluding any overage if it's a commercial development for forestry-related activities." Everything is negotiable until the agreement is actually drawn up.

 

The price and the clauses on agents' particulars are just a negotiating position.

 

Hope that helps,

 

Best wishes,

 

JR

Edited December 20, 2011 by John Russell