Selling site with occupany clause

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angela59

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Hi,

We received planning permission 1 year ago with condition of occupany clause on our 3 acres of land. Our house has been up for sale for 1 year and is not selling we have reduced price accordingly. At this stage we feel maybe best to stay put, extend and sell the land. Is it worth trying to get the occupany clause removed? Will potential purchaser of land have to reapply for planning on land even if this clause is removed. Or would it be best to sell the land advertising that there is FFP with occupany clause but individual would have to fullfill local area need? I would like advice please.

angela59
 
i have been looking at sites, and generally most sites with fpp in my area come with a 5 yr occupancy clause, and regardless of having the clause, the purchaser would have to reapply for planning in their own name.

i suppose this is only a problem if the site has planning for more than one house, but even then the local authority will ask that an occupancy clause be applied by the first house only, however i'm not sure if this is always the case.

re: local need, i'm not sure but am assuming that once fpp has been given, it is a relatively small thing to change the name on the planning.

i've been looking up planning permission and have found a few sites for sale with a "local need" aspect to it, yet it is not featured in the details for sale, where the occupancy clause is, and considering market, people are more likely to buy sites for "their" house rather than to develop, small scale development, but i could be wrong?
 
Hi bubbles61999,

Thanks for reply. Received planning with condition of 5 year occupancy clause. Trying to sell our existing house which we built 15 years ago - we've bought 3 acres and trying to build on it. It is hard to come by planning and a good site near town so will try our best to hold on to it maybe and build on it in time. Appreciate your reply - best of luck with trying to find a site - by the way I would recommend the cork plan - it is a great book for information even regarding buying sites - the orentation of the site etc.

angela59
 
bubbles61999 said:
re: local need, i'm not sure but am assuming that once fpp has been given, it is a relatively small thing to change the name on the planning.
Click to expand...

Sadly this is not the case. It is one of the more difficult elements to change on a PP.

I'm not a solicitor but I understand that the occupancy clauses now are referred to on the title documents so if the new purchaser is using a mortgage to fund the purchase then the bank/building society does have a problem with this clause and sometimes will not lend against it.
 
hi again,

i have noticed a property for sale in an area where i was looking only built a year, it had been granted planning with an occupancy clause, when i ran a check on the planning, (i always do this) i found that the occupier had contacted the local co co to get out of the clause, and succesfully managed to do so, although i assume it would probably be hard to do so, if maybe, you can prove financial hardship you can get out?

I stand corrected on the local need thing so! :) thanks, its interesting to know this for my own point of view.
 
Hi Lobby,

Not sure about OC on title deeds. We released equity for our house to purchase site - so no charge on lands - mortgage on our existing house.
 
Angela59,

I'm assuming you have 3 acres with FPP that has an occupancy clause in it?

If you try to sell that, the purchasers solicitor will indicate to the purchaser and their lender that there is an occupancy clause in the PP. If the house is built before the sale then it will be put into the title documents. If its not built than it will be part of the PP being sold with the land. In either event the purchasers solicitor will be aware of the clause. They are obliged to inform the lender (bank/building society) and the lenders may refuse to lend because of that. The purchaser then cannot complete the sale. If the purchaser has their own money then its not a problem, except the CoCo may object to them building - that would be their problem/risk though - not yours.

Proving fianancial difficulty is one way of removing the cluase though I'm not sure what level of evidence the CoCo look for to establish that.
 
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Hi Lobby,

Yes trying to get it removed if we wish to sell it is the best way and as you say proving financial difficulty is a way to get it removed. We may try and hold on to the land for another couple of years and build on it then - we're finding it hard to sell our existing house which we built 15 years ago even tough we reduced by 10%. Thanks for all the information, appreciate it.

angela59
 
Most planning authoritys while having this clause, restrict the occupier from selling but not the lending institution from selling to recoup their loan in the event of default.Thats the clause that is in my planning permission.
 
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