This week we have agreed the deal in principle, now we just need to get the solicitors working on it.
The outline of the deal:
We have secured a 24-month option for a nominal figure of £1, at the agreed price of £900,000. This means we have 2 years to obtain planning permission, and then we will have the right, but not the obligation, to purchase the site for the agreed-upon figure of £900k.
Planning will be a two-stage process, first involving an application under Class Q, where we will obtain a change of use from agriculture to residential under permitted development. This will enable us to establish residential use for the site and set out the number of units and total square footage of the site. Under Class Q, we will achieve 8 units, with a total area of 1,000 m².
Once we achieve approval for this, we will revise the scheme, based on the understanding that converting the existing barns would not create quality living accommodation (these are not well-maintained existing barns), and submit a new planning application. Having the Class Q in place will create a fallback position for the site, in terms of planning, giving great weight to any new application.
The new application will then look to slightly reduce the approved built area to 950m2 and reduce the number of units from 8 to 6. Both of which will make it appealing to the planners, as the revised scheme reduces the built area and number of units from that already approved.
We have appointed our solicitor to conclude this, who is experienced in options and promotion agreements, and we hope for a swift conclusion of the matter.
To summarise this opportunity and how it came about:
1. We initially worked on a numbers game by sending out over 100 letters to prospective landowners.
2. We received a reasonable response rate, with around fifteen responses, which broke down into three solid leads.
3. Out of the three leads, we focused on the one we felt had the greatest chance of success and the one where we managed to establish rapport with the owner.
4. Having established a good relationship through several meetings with the landowner, we were able to discuss the price and agree on a figure that worked for both parties.
Once we get it through the solicitors, we will start the challenge of trying to achieve planning permission, which, even with the Class Q rules being beneficial to us, will still be a challenge.
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