How much is land with approved planning worth?

[marcus1977]

Hi all...we live in an end of terrace house in Ramsgate, Kent, and applied for and got full planning permission for a 3 bedroom detached house in our garden adjacent to our property. The house and land is up for sale, but several builders are making offers on just the land. What is this land worth? We were told to work on thirds. Third for land, third for building costs, and third for profit. So, if the house was valued at £150,000, then the land was worth £50,000? Is this correct?? Thanks for any help!!

[Kaz]

Hi

I think the 'thirds' rule applies to the potential sale price of the finished property. A detached house is worth more than an EOT so the building plot should be worth more than a third of the value of your current house (I think)

Kaz

[marcus1977]

Thanks Kaz, very helpful...gives me more of an idea on what to ask for the land if we split the property!

[Kaz]

You're welcome Marcus. I also live in Kent and was actually looking at an auction property in Herne Bay on Friday

You say that your house and the land are currently on the market for sale. I think I would have been inclined to separate the house and building plot on the Title Deeds. Then sell the house first and possibly keep hold of the building plot for a while, afterall the planning permission lasts for 5 years doesn't it and the value of the plot will surely increase over the years

[canadarates@hotmail.com]

A third is just a rough estimate. You should check out the property tax records.