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SELF-BUILD
The Legalities of Self-build
Before you think about buying a plot of land to build on, before you even start eyeing up architect’s websites, find out all you need to know about the basic legal issues surrounding self-build.
Buying Land
Purchasing a plot of land may sound simple enough but the potential pitfalls can be even more expensive than house buying. So, before you even start to look at plots, find a local solicitor who is able to take care of the legal issues. Once you’ve found a promising site for your dream home, your solicitor will conduct searches to check the ownership of the plot and any rights of way or other issues that may affect the land.
For instance, the plot of land could have been used as security against a loan. A Land Certificate is a document issued by the Land Registry giving details of who owns the land but further checks also have to be made. One of the other important aspects of this initial research is to check for any planned developments of the area around your plot, such as a new housing estate or industrial use. Your solicitor will be able to find out about future plans from the local authority planning and highways department. Now’s also a good time to do some local networking. Ask around at local shops or with neighbours to gather as much information as possible – from rumoured changes in school catchment areas to campaigns by the local residents’ association.
You should also check that there’s no ransom strip. This is the term for an adjacent area to your plot that must be crossed to access the land or to run services. You don’t want to end up paying out an exorbitant amount to the owner of this land just to reach your property. With all this information gathered and assuming no nasty surprises, you can ask your solicitor to draw up a contract between you and the landowner.
Making An Offer
Your solicitor will advise you how to make an initial offer, subject to contract, in writing to the vendor. This offer can include a timescale, giving you some breathing space to check any potential difficulties such as sloping sites or drainage problems as well as the planning consent.
A plot sold with Outline Planning Permission (OPP) only means that the land could be developed, while Detailed Planning Permission (DPP) deals with the actual design of the proposed dwelling, ie, ‘DPP for three-bed single storey building’.
The solicitor’s offer means that you can still back out if there are planning problems or if building on the land would be beyond your budget. This is especially relevant in more remote areas where the cost of delivering services to the plot may make the plot uneconomical to develop. In England, an offer can still be made on a plot that’s already under offer. In Scotland, once a plot is under offer, no further offers can be accepted unless the sale falls through.
Buying Land At Auction
If you buy a plot through an auction, all your research must be carried out before you turn up to do your bidding. Once the gavel comes down, you’ve entered into a contract to buy. As well as preparing to finance the purchase, you must have the surveys and land searches complete. You can submit an offer to the auctioneer before the sale date and this may save you a stressful day’s bidding. Again, you should have all the finance, searches and site research complete before making the bid.
