Buying a plot of land for a self build project is an exciting prospect, but it’s not without its challenges.
The process can feel overwhelming, especially when it comes to navigating planning permissions, legal hurdles, and the technicalities of dealing with regulations.
If you’re looking to avoid costly mistakes and ensure your plot-buying experience is smooth, here are some common pitfalls to watch out for and tips on how to avoid them.
1. Buying land without planning permission or an option agreement
It might seem like a good idea to buy a plot without planning permission, as you could secure it for a lower price. However, this can be a risky approach. Many self-builders fall into the trap of buying land with the hope that they’ll be able to secure planning permission later, only to find that their dreams are dashed.
Land without planning permission is, essentially, a gamble. If you buy a plot that hasn’t been granted permission for development, you run the risk of it never being approved – making the land essentially useless. This is where an option agreement comes in.
An option agreement is a legally binding contract that gives you the exclusive right to buy the land at a pre-agreed price – but only after you’ve done your due diligence. This gives you time to investigate whether the plot is suitable for your intended use. You can check key factors like access, ground conditions, and whether you’re likely to receive planning permission. If planning permission is granted, you can go ahead with the purchase. This way, you’re not throwing your money away on land that could be unbuildable.
2. Beware of expiring planning permissions
Imagine this scenario: you find your dream plot, and it already has planning permission. It seems perfect! But there’s a catch – the permission is about to expire. While it may not seem like a huge issue at first, expiring planning permissions can cause serious headaches.
Planning permissions typically last for three years. If you don’t start construction within that time, the permission lapses. While renewing the permission may seem like a simple process, it’s not always guaranteed. New planning policies or local priorities could affect your ability to renew the permission.
Before committing to a plot, always check the remaining time on the planning permission and determine if it’s feasible to start construction before the expiry date. To make a “material start” (which ensures your permission remains valid), you usually need to carry out significant work, such as laying foundations. But this takes time, and there are several stages you must go through first, including finalising designs and securing building regulations approval.
If it seems like you won’t meet the deadline, consult a planning expert who can help you navigate the process of extending or renewing the permission. A thorough understanding of the timelines and requirements will prevent you from losing your investment in a plot and the golden rule is to never assume planning permission will be automatically renewed.
3. Buying a plot with a ‘ruin’ of an old house
For many self-builders, the idea of replacing or restoring a derelict building or ‘ruin’ is enticing. The thought of transforming a forgotten structure into a beautiful home is part of the appeal. However, before you get too attached to the idea, you must first understand the potential hurdles involved.
Just because a property looks like a house doesn’t mean you’ll be able to renovate or replace it with a house. In fact, many derelict buildings, especially those outside of local settlement boundaries, are not eligible for redevelopment. Local authorities often impose strict planning policies on such properties, particularly if the building has been abandoned for years.
The key issue here is the concept of settlement boundaries. These are lines drawn on maps by local authorities to define areas where development is acceptable. If a ruin is located outside the settlement boundary, it’s considered open countryside, and the chances of obtaining planning permission for redevelopment are slim unless you meet specific criteria (e.g., an architecturally exceptional project).
For those keen on taking on a ruin, my advice is to look for one that falls within a settlement boundary. Even then, it’s wise to consult with a planning expert who can evaluate whether the site is protected in some way and will meet the requirements for a successful planning application.
4. Buying a plot unsuitable for your vision
It’s easy to fall in love with a plot and many self-builders, driven by emotion, purchase the plot only to realise their plans are incompatible with the site’s constraints.
A common issue occurs when buyers purchase a plot that’s approved for a small bungalow but then decide to build a large, multi-storey home. Planning authorities look closely at how your proposed design fits into the surrounding area, considering factors like the size of the building, architectural style, and impact on neighbouring properties. A design that doesn’t fit with the local character or causes harm to the neighbours might not be approved.
To avoid this mistake, it’s important to assess the building plot’s constraints and planning restrictions. Start by understanding how planning policies are applied and how your proposed build will align with them. Working with an architectural designer and planning professional will help ensure your vision complements policy guidelines.
Remember, the planners will be looking for a well-thought-out design that fits well in the street scene, connecting with local vernaculars. The question they’ll be asking themselves is whether it will cause harm.
By embracing the planning rules and taking a lead from the professionals who understand how they’re applied, you’ll develop a much more coherent design more likely to be approved.
5. Buying without surveys and research
Every plot has challenges, from ground conditions to legal access issues. Yet many self-builders skip essential investigations, leading to costly surprises.
Not doing proper due diligence on a plot is one of the most common and costly mistakes that self-builders make. Legal issues, services connections, ground conditions, and planning feasibility are all factors that need to be investigated before committing to a purchase.
Engaging professionals – such as planning consultants or surveyors – can uncover potential risks early, saving you time and money in the long run. When making an offer, include conditions like “subject to ground investigation” or “subject to confirmation of legal access.” This provides flexibility to renegotiate or withdraw if significant issues arise.
6. Ignoring the cost of connecting services
One of the most significant, yet often overlooked, costs of developing land is connecting the plot to essential services, such as bringing electricity to site as well as water, and installing mains drainage. For plots within established settlements, this might be relatively straightforward. However, for more remote plots, particularly in rural areas, connecting services can be prohibitively expensive.
Before purchasing land, always check the availability and costs of connecting essential services. In some cases, bringing utilities to a plot could cost thousands of pounds, especially if you’re looking at a rural location where infrastructure is lacking.
While off-grid options like solar panels and sewage treatment tanks are available, they may not suit every plot or even your lifestyle. So, before buying, always do your due diligence to understand the costs and feasibility of connecting the plot to the essential services.
7. Restrictive covenants and legal restrictions
You’ve found the perfect plot, but the title deeds reveal a nasty surprise – a restrictive covenant. Restrictive covenants can severely limit how you use or develop your plot and these legal obligations, tied to the land, remain enforceable even as ownership changes. Covenants come in different forms and they could restrict the size of your building, how the land is used, or preserve certain views. Some have commercial implications such as overages which promises the beneficiary a commercial consideration in the event the land is developed. Some covenants are difficult or impossible to remove, and covenants such as overages can make your development plans unviable.
Before buying land, or moving forward with a development you already own, consult a solicitor to review the title deeds and assess how any covenants could impact your plans. There’s usually a solution, even if it involves money or taking out insurance, and by resolving them early you’ll avoid unexpected claims.
8. Not having a legal right of access
Another common plot-buying mistake is failing to check access rights. Without proper access to your plot, it’s essentially undevelopable. Make sure there is a clear, legal right of way to the plot, ideally one that doesn’t involve shared drives or private roads that require agreements with other parties.
In some cases, there may be a ransom strip – a small piece of land owned by someone else, which stands between your plot and the adopted highway. To access your plot, you would need permission from the ransom strip owner, and they may demand a significant payment which can be as much as a third of the development profit.
When it comes to access, the rule is never assume and always have a legal professional check things over. If you find a ransom strip, don’t let that put you off, but prepare to negotiate hard for access rights and reflect any ransom payments into the land value.
9. Social media land scams
Social media, particularly platforms like Facebook Marketplace, can be an easy place to find plots of land. However, it’s also rife with scam building plots. The platforms themselves are unregulated, and many so-called “building plots” are actually fields subdivided into smaller lots, with no realistic chance of obtaining planning permission.
To avoid falling for these scams, always do thorough research and don’t reply on seller’s claims. Verify listings through trusted professionals such as planning professionals or conveyancing solicitors, who will flag any issues before you buy. Remember, if it looks too good to be true, it probably is, so steer well clear.
Buying a self build plot is a significant investment, and while starting your self build journey is undoubtedly exciting, it’s also fraught with potential pitfalls. Always approach plot-buying with scepticism and seek professional advice. By conducting thorough research, and being aware of the common mistakes, self-builders can avoid costly mistakes and ensure that the plot-buying experience is a smooth and successful one.
It’s worth having a good look at the different types of building plot to understand your options before buying any kind of land, with and without planning permission, that you might hope to build on.
View the original article and our Inspiration here
Leave a Reply