Planning, Compliance and Receivers

Balmed Out

A year ago I was outbid on a receivership sale of a property built 8 years ago with several aspects which contravened its planning permission meaning it could not get a certificate of compliance.

That sale has since fallen through.

At the time I had a telephone call with the planner responsible for the area. The planner was familiar with the house but there had been no objections to it.

Most of the issues were likely to not cause problems in getting retention except one which would require some work. However all this was likelihoods they cannot say definitively.

Due to its issues and only being able to be bought by cash buyers (in my case probably with the addition of a personal loan, (bank say no prob)) the property is probably 40% cheaper then what it might otherwise be thence the temptation.

Q. Why would a receiver not remedy the planning situation themselves and thus get a higher sale price?

Q. I presume its not possible to insure a house without compliance?

Q. Other then remedial works, extra surveyor and legal costs etc are there other extra significant costs such as planning contributions(this is in the hundreds not thousands?)?

Q. I wouldn't intend to sell but would want to get retention especially as the one issue needing attention affects a neighbor who I have spoken to and is friendly with me. Am I right that after seven years they cant order for a house to be taken down? does applying for retention affect this?

sydthebeat

Balmed Out wrote: »

Q. Why would a receiver not remedy the planning situation themselves and thus get a higher sale price?

Q. I presume its not possible to insure a house without compliance?

Q. Other then remedial works, extra surveyor and legal costs etc are there other extra significant costs such as planning contributions(this is in the hundreds not thousands?)?

Q. I wouldn't intend to sell but would want to get retention especially as the one issue needing attention affects a neighbor who I have spoken to and is friendly with me. Am I right that after seven years they cant order for a house to be taken down? does applying for retention affect this?

Q1.
Not in their remit... their remit is to realise monies as quickly as possible with as little outlay as possible.

Q2.
It is possible to insure a house without compliance, they 2 are not connected in anyway.

Q3.
Thats for you to do your due diligence on. You need to contact the panning section and see if there is contributions outstanding, or, if planning for remedial works is granted, would there be more financial contributions.
Other than that, the usual connection fess apply if not already connected.

Q4.
Unauthorised development is subject to a 'statute of limitations; of 7 years and 100 odd days. However this statute doesnt kick in until after the expiry of the original planning permission.... so in effect 12 years and 100 odd days from when planning is granted.
The other knock on effects of this is that the property cannot be sold or mortgaged while unauthorised development exists, and no valid planning application can be made until the works are regularised.
Once unauthorised, always unauthorised.

Balmed Out

Thanks for the detailed response sydthebeat.

There is an older application over 10 years with the newer one being 8.5years, I presume the 12 years is taken from the date of the later application?
To satisfy the existing plans you would need to do work involving a new septic tank which I presume would require planning approval? Given the chicken and egg problem I presume it is possible to apply for permission to do work to satisfy the previous permission?

sydthebeat

i cant say for certain what the operative date of the planning is, without being intimately involved. with some applications you could have a "parent" permission and them some subordinate ones ie an application for "change of design" will be tied to the original parent permission and the whole timeline involved with same.

a new septic tank will require a new planning application, and most probably a new percolation test.

and yes, you can apply for permission to rectify the unauthorised works... this could be a retention application, a completion application,new works, or an amalgamation of these

Balmed Out

Thanks Syd, plenty of food for thought.