UNDERSTANDING A PLOT ’S POTENTIAL
Planning consultant Julia Riddle takes a look at the risk involved in buying land to build on, and how to identify its value
David and Flicky Ridel bought a patch of land on their road with the view to knock down the dilapidated bungalow and build a new home in its place – but this was a risky move as the land is in a conservation area. Thankfully, the gamble paid off, and the couple were able to go ahead with their dream home project
JOE LENTON
If you’re buying land to build a new home, it’s always important to consider the level of risk associated with your development. Uncertainty concerning the planning context and existing development is likely to define the extent and nature of any negotiations and determine the approach you take to purchasing the plot.
Buying land with a house on it
If a plot already has a house on it, the value is largely determined by the market value of that property. Likewise, if it has an existing building that you might be looking to convert, the value will be defined by the present use of that building and potentially some ‘hope value’ added for the prospective development.