Posted on 2nd October 2021
Planning permission can add a lot of value to land. If you consider selling your land, you must get planning permission before putting the property on the market. Planning permission may not be needed for all types of development projects, but it will give buyers peace of mind and show them that you have done everything in your power to protect their investment. This article expounds on the value of planning permission and what it adds.
How to Get Planning Permission First
If you are looking to exploit your land for development purposes, your first step is to find out if you can do this. If you know that you are not permitted to build on your land, it is worth applying for planning permission before putting the land on the market. This shows potential buyers how serious you are about selling the property and may lead them to believe that there is even more development potential for your plot of land.
Some unscrupulous property investors try to skip the planning stage in order to make a quick sale. By putting your land on the market without permission, you effectively create an offer for development open to anyone who makes the total asking price. If local authorities do not approve of your proposal or can’t agree with you within three months, any money received for the land will be returned. This is not good for your reputation or future dealings in the area and may lead to problems down the line when you try to put your land on the market again.
The Benefits of Planning Permission
You can sell your property in any way you want, but having the necessary planning permission in place is a good idea. The following are some of the benefits that it brings.
It Enhances More Security for buyers
If you are considering selling your land regardless of its current zoning status, this could be an issue for potential buyers. They are unlikely to buy the plot without planning permission being granted first, as they won’t know what you intend to build there. If planning permission is granted after the sale, it could lead to complications with them or their mortgage providers, so it’s best to avoid it.
It Shows More Assurance of Your Intentions
Planning permission shows that you have done everything in your power to protect the buyer’s investment. If you haven’t sought any permission, it could show that you are not thinking about these issues or that you do not intend to sell the land. The last thing a buyer wants is to purchase a piece of land without knowing what it will be used for and then find that the land is no longer for sale because it has been approved for a different type of development.
It Will Improve the Price of the Property
Planning law makes it very difficult to build on certain plots of land, increasing the value of the land with planning permission. According to research done by The Royal Institution of Chartered Surveyors, granting planning permission can increase the value of your land dramatically, as much as 20%. This makes sense as getting this sort of consent demonstrates that you are serious about selling the property so that it may be worth more to potential buyers.
It Will Enhance Your Reputation
If you get planning permission for your land before putting it on the market, this shows that you have thought responsibly about future development and what is best for the buyer and community as a whole. By getting planning permission beforehand, you improve your reputation. Although this should happen before any sale, many people will forget to do it if they are not expecting a sale.
You Evade Unforeseen Circumstances
If you put your land on the market without planning permission, there is no guarantee that it will actually be approved by local authorities when you want it to be. There may be circumstances that you had no way of predicting, such as a neighbour’s refusal or a decline in the housing market. This may prevent you from selling your property for a long time and can be an embarrassing situation.
The more you know about how to protect your land, the less likely it is that someone will be able to come in and take what’s rightfully yours. By understanding planning permission, you get the proof and certainty of your investment at any time. You can rest assured knowing that you won’t be caught out by any planning problems in future; you can comfortably secure a sale.
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