Finding

Identifying a viable building site is the first step in your self build journey. Get ahead of the competition with these plot hunting tips

as giving you the chance to find a good plot, this resource helps you get a feel for land prices and availability in different areas. You can also see which estate agents are active in your region. Turn to page 111 for a taster of what’s on offer.

Check out property auctions Many good quality plots change hands this way. Auction houses such as Clive Emson, Allsop and Savills sell a variety of sites, so get on their mailing lists for catalogues. Remember that you will need to have finance in place – once the hammer goes down, the contract is triggered and a deposit is due. FURTHER READING www.self-build.co.uk/auctions

Register with agents Many building plots are still sold through traditional estate and land agents. Monitor the books of both types, as some may have overlooked the planning potential of properties they’re selling (eg for a demolish and rebuild opportunity). The personal approach can pay dividends with this route, too – if they know you, they’re much more likely to give you a heads up when something’s coming onto the market.

WHAT MAKES A GOOD PLOT?

Picture the perfect piece of land and it will probably be in a pleasant area, affordable, completely level, easy to access and have good ground conditions, no obstructions and no planning issues that might hamper your plans. Trouble is, that plot doesn’t exist (or at least if it did, a big developer probably snapped it up ages ago). In practice, even the best site will require you to make a few compromises. So it’s crucial to assess contenders properly to check you can get as close as possible to your goals at a cost that stacks up.

Plots generally come with planning permission in place: either outline (which is a fairly loose affirmation that the site can be developed); or full (consent for a particular design). Beware any site that doesn’t have a current approval. Land is worth considerably more once consent has been granted, so if the deal looks too good to be true, it probably is.

Basic potential

Once you’ve spotted a likely-looking opportunity, there are two key questions to ask before delving in further. Can the house you want to build be comfortably accommodated on the plot (eg in terms of size, local property values and the like)? And does the existing planning consent allow for that house, or could it be amended to suit? If you can say yes to both of those, then it’s worth a bit more research.

In terms of site suitability, you need to check for issues that could increase construction costs (which should be factored into any offer for the land), make it difficult to get the right kind of design for your household, or affect the viability of a project. Some of the most notorious budgetbusters include steep slopes, difficult access to services (electricity, gas, water etc) or obstacles such as trees, existing structures and overhead cables. But these issues may not be insurmountable, and with good design some can even be turned to your advantage. A sloping plot is likely to offer great views and the potential for a basement, for instance, and you won’t face much competition from developers.

From a planning perspective, check how long is left on the consent. If it’s less than about six months and you need to redesign the house or sort out any conditions the planners have put on the permission (such as approval for materials), this could be problematic. It might sound obvious, but you should also scrutinise the plot boundaries to ensure you’re buying all of the land included in the approved plans.

Detailed assessment

If early-stage investigations seem positive, you can move on to a more in-depth appraisal of exactly how suitable the site is in terms of planning potential and build costs. This will take in things like access, trees, ground conditions, drainage and legal considerations. Build It’s invaluable resource at www.self-build.co.uk/plot-checklist can help structure this part of the process. If you come up against anything you’re unsure about, seek advice from suitable professionals. That might mean speaking to your local council about planning matters or engaging a solicitor on the legals.

A planning consultant, architect or specialist design-andbuild company may also be able to point you in the right direction or help you undertake a full viability assessment.

The value arising from planning consent is temporary, and only becomes tangible once a material start has been made on site (eg foundations installed). But that value is significant: agricultural land with no building potential might have a notional value of £5,000 to £10,000 per acre, while a quarter acre plot (with planning) might be worth £100,000 to £300,000 depending on location. So if the price looks cheap, it’s important to ask yourself why before you buy.

While some might be able to finance a land purchase from savings and investments, most of us require a mortgage. A lender might be prepared to loan you 60% to 80% of the plot’s value, but they’ll either want this repaid before the consent expires (usually with a 12 month safety margin) or a guarantee the project will start by a certain date. Some might seek a charge on another sizeable asset, or possibly a personal guarantee or a third party guarantor. Specialist self build mortgage lenders are much more comfortable with land acquisition than the high street banks, though some specifically preclude this aspect. For this reason, dedicated brokers are vital, as they will help you navigate the market and direct you to the most appropriate product and, crucially, help you to prepare for the application properly.

Providers who lend on land will expect the some detailed information with your application, covering aspects such as build route, materials, detailed costings, cashflow forecasts and a demonstration of affordability. Once you have their offer, you can proceed to completion on your plot.

Agreeing the plot price

Some vendors will sell to the first cash-rich developer they come across, while others hold out for best price. Many are keen to work with self builders, especially when the plot is next door to their own house, so they have some idea of who their new neighbours are going to be.

You can reach a reasonable land valuation by subtracting indicative design and build costs from an anticipated final market value. What’s left would be the very maximum that anyone should pay for the plot – and speculative developers will want to secure land at much lower costs than this as they will be seeking a healthy profit from the project. There will be a guide price, but you need to be thorough with due diligence to be sure about your maximum offer.

Negotiations with a vendor can take anything from two to 20 weeks, depending on whether you need a mortgage (longer if you need a new planning consent). If there’s a lot of competitive interest, you may find it difficult to move quickly enough if you’re reliant on a mortgage – unless you can find the cash from another source. Some sellers might request a holding fee (known as an ‘option’) in return for giving you time.

If competition is very high, the selling agent may run a sealed bid, where you get one chance to put in an offer by a set date. The vendor then compares offers and chooses their preferred bidder, based on the price and purchaser profile.

Conveyancing (buying the plot)

This is the bit where you need a lawyer. They’ll treat your plot purchase just like any other property transaction, usually following the Conveyancing Protocol guidelines. If you have a mortgage, they’ll be acting for both you and the lender.

Your lawyer will carry out searches on your behalf, usually including drainage and an environmental assessment. These are standard documents based on information taken from databases/maps from utility companies (water, drainage, power and gas) as well as the Environment Agency, British Geological Survey, Radon UK etc. They are not absolute and are full of caveats, but are nonetheless a good place to start.

Sometimes, physical site inspections will be required (at a cost) to obtain evidence of where services may be located. You’ll need to study these in detail yourself, as your lawyer will expect you to rely on the information contained within these reports and not their interpretation of them.

Then there is the thorny issue of title. Most land, but not all, is registered with the Land Registry. Sensible vendors who secure planning consent in their gardens will have registered the plot they want to sell under a separate title. But title plans and the deed narrative are often difficult to interpret.

On the title plan, the red line around the site shows your boundary positions and plot dimensions. This is usually at a scale of 1: 2500 or 1:1250 for the location plan, with a site plan at 1: 500. Older versions may simply be at a 1: 2500 scale. Always check it matches the planning consent.

The deed narrative is designed to tell the story of who sold what to who and when, and who may be the beneficiary of any legal covenants. Understanding this takes experience, and your lawyer will advise you of anything that appears to be a problem (ie if they might block development or require you to come to a financial arrangement with the beneficiary). In some cases, insurance can be used to cover the risk of old covenants where the current beneficiaries are not traceable.

Contracts will be exchanged and completed when both sides are ready, just like any other property purchase, and your lawyer will handle all aspects of this transaction for you.