Applying for PP before sale is closed - risks

[Pablo]

Hi - we are looking for a bigger house and found a property that could be suitable if extended. The property is on probate and the agent suggested that if we went sale agreed they would have no objection to us applying for Planning Permission while waiting for close (which may take a few months due to probate).

My question is - once the planning permission is approved, given the additional value it gives to the property, is there a real risk that the agent / seller decides to relist the property or ask for a higher price to take advantage of the additional value this PP gives it? if so, is there anything we can do to reduce that risk?

Thanks,
Pablo

 

[BlackandBlue]

is there a real risk that the agent / seller decides to relist the property or ask for a higher price to take advantage of the additional value this PP gives it?

Up until both parties sign their respective contracts either party can pull out of the sale.
So its a possibility. Remote possibility but a possibility none the less.

 

[Leo]

This is likely a greater risk in a probate sale as these often don't involve a vendor who is already set on moving to a different property. Where a property is left equally to a number of children, they must all agree for a sale to proceed. It just takes one of them wanting a better price to scuttle a sale.

That said, if this is a property that offers obvious extension potential then that's very likely factored into the price already. Someone might see additional value in any permission you are granted, but they also might prefer to put their own stamp on the design.

 

[NoRegretsCoyote]

is there a real risk that the agent / seller decides to relist the property or ask for a higher price to take advantage of the additional value this PP gives it?

I don't think the risk is very high given that beneficiaries would need to know about the granting of PP it and then conspire to squeeze more out of you.

And if PP is refused it would be a good reason for you not to go through with the purchase.

This is kind of a "heads I win, tails you lose" situation for you so I would go ahead.

 

[Peanuts]

You could prepare the planning application but not actually submit it until sale is complete or at least contracts are signed.

 

[Leo]

I don't think the risk is very high given that beneficiaries would need to know about the granting of PP it and then conspire to squeeze more out of you.

If they live locally they'd likely note the planning notice that has to be erected on site, or some of the neighbours might contact them on seeing it. If they hadn't been informed they may take umbrage.

 

[jpd]

If you apply for planning permission on a site you do not own, you must have the owner's approval

 

[Brendan Burgess]

once the planning permission is approved, given the additional value it gives to the property,

Why do you think it gives additional value?

If you are applying to build a house in the side garden where there is a question mark over whether permission would be granted or not, then it would increase the value.

But, if it's a normal extension which would be routinely approved, it will not increase the value of the property.

Brendan

 

[Peanuts]

If they live locally they'd likely note the planning notice that has to be erected on site, or some of the neighbours might contact them on seeing it. If they hadn't been informed they may take umbrage.

I'd expect that you would also need a letter of consent from the current owners to include in the planning application.