STEP 3 – Offers
Once all offers have been received I will arrange to meet with you to discuss them and make my recommendations. Remember the highest offer is not always the best offer. Sometimes developers will make offers based on schemes which stand a slim chance of success at planning. I am there to ensure that the planning and reasoning of each developer is sound and thoroughly researched before any decision is made.
There are three usual ways a developer can purchase the land/property.
Offer subject to planning: Known as a conditional offer. This means as it says that sale would be subject to gaining planning permission. This is the most common way that land is purchased and is usually the most profitable for the land owner.
An unconditional offer: The purchase is straight forward with no strings attached but can prove less profitable to the owner because the developer bears all the risks.
Joint Venture: This is where you and the developer work in partnership, with the owner providing the land and the developer provides the planning and building costs with profits shared between both parties.
What happens once an offer is accepted?
I envisage any agreement proceeding under the following conditions and timescales.
Offer: I anticipate that the offer would be subject to planning and will include most if not all of the following:
1. Planning permission being granted (number of units)
2. Covenant removal (if appropriate)
3. No adverse ground conditions being discovered.
4. No contaminants being found on the site.
Timescales: To enable the purchaser to carry out the normal pre application tests, surveys, and enquiries. It is normal for the seller and buyer to enter into a period of exclusivity, this can be agreed between both parties but usually allows enough time for the buyer to exchange contracts.
From exchange of contracts I would suggest that the purchaser will require at least 6-8 weeks to submit the planning application or applications.
Following this the local authority should determine the application or applications within 8 – 13 weeks. This could be longer if extended negotiations are required.
In the event of a refusal it may then be appropriate to submit an amended application, if the purchaser’s professional advisors feel this would stand a reasonable chance of success and not harm the economic viability of the scheme. This can then take another 8 – 10 weeks to be determined.
Lastly should those same advisors indicate that an appeal of the first application or applications would stand a better than average chance of success this would be submitted and should be the subject of an informal hearing within 6 months.
Total timeline will be approximately 12 months in the event of a refusal and appeal or sooner if the first or second applications are successful.
Deposit: Normally nominal to cover vendors reasonable legal fees, this will need to be negotiated but is always non refundable.
Completion: This can be negotiated but it usually takes place 8-12 weeks after receipt of written planning permission.
This should give you some idea of how the process works however if there is anything that you are unsure about or I haven’t mentioned, please don’t hesitate to contact me (Discretion Assured).