New Build plus 50k to council?

by Readers Question

15:09 PM, 6th October 2015
About 5 years ago

New Build plus 50k to council?

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New Build plus 50k to council?

I have a small of piece of land in my garden that can fit a small 2 bed house. I went for planning advice and I was told that if i was granted planing permission, I would have to pay a CIL fee, and also contribute towards the council’s education/ highways/ affordable housing etc which could cost as much as £50k in total. CIL

The profit probably would not be up to 50k… Is there a way to go around this as I might as well just work for the council.

Many thanks

Pete

 


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Comments

Matt Wardman

9:39 AM, 14th October 2015
About 5 years ago

Pete

3 comments:

1 - If the CiL has not been Examined and Introduced yet, that means you have an opportunity to put your Planning Application in quickly and avoid liability. You will need to check what defines the start of liability.

If you went for full permission you could then start lawful development (however they define it - a soakaway or strip of foundations may be enough) which would then lock in that Planning Permission and prevent you losing it after the usual 3 year period.

2 - Given that your plot is not going anywhere, perhaps look at a 3 year or so option agreement with a self-builder who will apply for permission with your consent. They will not be liable for CiL, so that would add to your value. Waiting for 3 years is no skin off your nose, as the plot will still be there if they fail.

And no project to manage, or development risk to take, or capital to find.

Plots in North London are like hens' teeth, so someone may bite.

My suggestion would be not to sweat the *absolute* value if doing that, because it needs to be a win-win, and you want somebody to work with over a period.

With permission you could post on one of the self-build forums (but ask first) to find someone. I like ebuild, and I think you could expect interest. Plotfinding is the most difficult stage.

3 - I am not sure that this is correct:
"A small drop from 112m2 to 99.9m2 would mean there would be no CIL to pay, and perhaps no S106 either."

Matt

Angela Cooper

9:51 AM, 14th October 2015
About 5 years ago

Employ a RIBA registered Architect who will guide you thro the process!

matchmade

11:00 AM, 14th October 2015
About 5 years ago

Reply to the comment left by "Matt Wardman" at "14/10/2015 - 09:39":

Matt - point 3: you're right. The 100m2 limit only applies to extensions, not a new separate property. Page 7 of Enfield's draft charging structure says there is an exemption from CIL with "Developments where the gross internal area of new build on the relevant land will be less than 100 square metres (does not apply where development will comprise one or more dwellings)".

Matt Wardman

12:27 PM, 14th October 2015
About 5 years ago

Personally I tend to prefer Chartered Surveyors or Architectural Draftsmen to Architects as they are a little less likely to view themselves as artists and therefore be more attentive to my requirements over their own vision.

But I have done my share of this.

Angela Cooper

14:02 PM, 14th October 2015
About 5 years ago

Matt As with all professions some are better than others but neither a surveyor or a draft person have the same qualifications, training or insurance as an Architect so can`t really be compared. I run my own Chartered practice in Aberdeen and have just recently saved a client money on the Scottish version of these charges. My advice to Pete would be to go to an Architect and obtain the correct guidance from the start. Pete may find that the local authority already have guidelines in place for splitting residential gardens.

Evan Owen

14:34 PM, 14th October 2015
About 5 years ago

Stop fighting you lot 😉

I have worked for and with RIBA architects and surveyors since 1971, they are as inconsistent as planners and the LPAs who pluck figures out of thin air.

Personally I would wait until the English government has to take action against these "taxes" because they are holding up development. If they are Section 106 planning obligations you can negotiate using a viability assessment.

Pete Moore

17:06 PM, 14th October 2015
About 5 years ago

I would like to say BIG thank you to everyone for your valued comments and advice. All points have been taken and noted as I am relatively a newbie to new builds.

Much Appreciated.

Pete

Angela Cooper

17:10 PM, 14th October 2015
About 5 years ago

Matt/Evan, Your personal views or experience don't cover all the Architects in the UK and its quite insulting that you both find it necessary to pass comments on another members point of view whilst slandering a highly regulated profession. The property forum on this site is where members can share and discuss best practice and I would expect the information given by members to fall under best practice. Not employing the most appropriate person to carry out any work is beyond me!

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