Background:
One of our clients was offered a property to purchase in South Leicestershire which was a 3000 sq ft, five bedroom detached family home situated on a 1 acre plot. Our client agreed to purchase this property for £850,000 with a view to obtaining planning permission on 0.75 acres of land and to re-sell the existing property with a smaller, 0.25 acre plot.
Our Involvement:
Along with our client, and following the advice of planning consultants, we determined that it could be feasible to obtain planning permission for three detached dwellings of circa 3000 sq ft each on the remaining 0.75 acre plot. With this in mind, we appraised the site (subject to planning) and presented the development land opportunity, exclusively to our Investor Club members. A buyer quickly secured the site (subject to full planning permission) at the price of £790,000 via The Investors Club. As we progressed through the planning process, designs, sizes, style, access amoungst other points were agreed allowing full planning permission to be granted. The conveyancing process then progressed through to completion whilst the original property was re-marketed for circa £650,000.
Upon completion of the new development, the new properties have a GDV of circa £2.9m whilst build costs are expected to be circa £1.2m. This resulted in the original buyer generating over £550,000 gross profit, by splitting the land and obtaining planning permission. The developer who purchased the land (STP) is set to make in excess of £850,000 gross profit upon completion of the development site.