Selling site with planning permission?

D

Dustyman

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Moderator please feel free to move.

Hi all,

We have a site in the country, my wife has, inherited from family all local to area.
It's a 5 acre site.
Yes, we are very fortunate and thankful to have same.
We are planning to build a house there however have found a house we love, although it is somewhat outside our budget.

Question is; If we got planning on our site could we put it up for sale with the planning?
We have some cash (again thankful for same) but would need to raise a fair bit more. The cash we have and the 5 acres (agricultural land currently) just wouldn't be enough to buy the house we have found.
We feel the site with planning would be worth considerably more.
Question is; Can we sell the site with planning? I thought I heard about some stipulation about not been able to sell for 5 years? But am unsure.
We are in Carlow (county).

Thanks in advance for replies/info./advice.

Kind regard's,

Dm
 
AFAIK you need Outline Planning Permission (OPP) to sell a site under those circumstances.

Back in 2005 I needed extra money to buy a house in Dublin so I sold a 0.5 acre site in Cork.
Application for OPP was the first official step I had to take on advice from an engineer.
That was Cork 15 years ago, though, may be different now.
 
If your planning permission has a "Local Needs" clause then it will be specific to you or to a purchaser who would also qualify, thereby reducing the pool of potential buyers considerably.

Also, if it increased the value of the site then you would be subject to CGT on the increase.

If you availed of the tax reliefs available for transfer of site to a child to build their PPR on that would be clawed back as well.
 
Dustyman said:
Moderator please feel free to move.

Hi all,

We have a site in the country, my wife has, inherited from family all local to area.
It's a 5 acre site.
Yes, we are very fortunate and thankful to have same.
We are planning to build a house there however have found a house we love, although it is somewhat outside our budget.

Question is; If we got planning on our site could we put it up for sale with the planning?
We have some cash (again thankful for same) but would need to raise a fair bit more. The cash we have and the 5 acres (agricultural land currently) just wouldn't be enough to buy the house we have found.
We feel the site with planning would be worth considerably more.
Question is; Can we sell the site with planning? I thought I heard about some stipulation about not been able to sell for 5 years? But am unsure.
We are in Carlow (county).

Thanks in advance for replies/info./advice.

Kind regard's,

Dm
Click to expand...

As per Mrs Vimes,
You might secure planning. A pre planning meeting when ever they start back up should give you a fair indication of where your at. I would also think there will be a local needs attachment to the planning if secured. In other words a local showing a need to build a house would only secure planning and should they secure planning it would have to be used as main residence and could not be sold for a number of years. It certainly does narrow down the pool of buyers out there.
Exactly what the councils are trying to do.
 
Firstly thank you all for your replies.

I guess we should apply for outline planning first?

Will OPP significantly increase the value of the site?

Would it usually be specific to the the owner (us) living there (we are locals)? Could we sell it on to another local with the OPP?
I do feel there will be a lot of local interest but I guess it is a gamble or is it?

In regard's to Capital Gains Tax anyone have any idea what % that would be?
 
I think the OPP will make it viable as a site. Any buyer will know that it has the basics for a house build, like sight lines. So in effect it’ll increase the value.
I don’t think the OPP application is expensive.

I went to a pre-planning meeting once (different house, different site). The guys from the council sounded very happy and congratulated us on our imagination and design.
Then there report came back with about a dozen “recommendations”.
Long story short, never got built.
 
Mrs Vimes said:
If your planning permission has a "Local Needs" clause then it will be specific to you or to a purchaser who would also qualify, thereby reducing the pool of potential buyers considerably.

Also, if it increased the value of the site then you would be subject to CGT on the increase.

If you availed of the tax reliefs available for transfer of site to a child to build their PPR on that would be clawed back as well.
Click to expand...
My wife purchased the site (didn't inherit the site) many years back so I guess we (she) wouldn't be able for CGT if the site went up in value with OPP.
 
Dustyman said:
My wife purchased the site (didn't inherit the site) many years back so I guess we (she) wouldn't be able for CGT if the site went up in value with OPP.
Click to expand...
She will. CGT will be calculated on the difference between what it was bought for and what it's sold for.

To answer your original question, you'd be best to talk to a few estate agents that might handle the sale for you, and get their advice.
Approaches vary by council, so you need someone familiar with the area, and what potential buyers look for.

Down my neck of the woods, where local needs apply, outline planning is worthless nowadays. I no longer see applications for OPP, or sites being advertised with it. Typically, here, sites are sold subject to planning permission. It makes for a long process in selling if you're trying to raise cash.

However, you could do the pre application assessment, and percolation tests, so at least a potential purchaser knows what kind of septic tank / percolation area they would need before they go to the cost of applying. Similar to OPP, the purchaser would know that the council are theoretically open to the idea of a house being built in the area, maybe; if they don't change their mind again...
 
RedOnion said:
She will. CGT will be calculated on the difference between what it was bought for and what it's sold for.

To answer your original question, you'd be best to talk to a few estate agents that might handle the sale for you, and get their advice.
Approaches vary by council, so you need someone familiar with the area, and what potential buyers look for.

Down my neck of the woods, where local needs apply, outline planning is worthless nowadays. I no longer see applications for OPP, or sites being advertised with it. Typically, here, sites are sold subject to planning permission. It makes for a long process in selling if you're trying to raise cash.

However, you could do the pre application assessment, and percolation tests, so at least a potential purchaser knows what kind of septic tank / percolation area they would need before they go to the cost of applying. Similar to OPP, the purchaser would know that the council are theoretically open to the idea of a house being built in the area, maybe; if they don't change their mind again...
Click to expand...

Great advice/info. and thank you. Much appreciated.
 
Dustyman said:
My wife purchased the site (didn't inherit the site) many years back so I guess we (she) wouldn't be able for CGT if the site went up in value with OPP.
Click to expand...
I thought you said she inherited it in your original post? In any case, it's now 2021 and I'm guessing with Covid and everything else you haven't done much about it. Would that be correct? I do hope that with 5 acres you're not thinking of just one house when talking about planning permission? An update, as Homeland says ,would be good to know.
 
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