Advice on Finding a Plot

Finding the right plot is the most difficult hurdle facing the first-time self-builder, says Jason Orme, but a mix of persistence, luck and application is the recipe for success.

When you begin to look for a plot, the first trip you should make is straight to the bank. Establish your total project budget and work backwards from there. Make a rough estimate of your new home’s build costs using the H&R Build Cost Table. Subtract this from your total budget, along with another 10% of the build costs as a contingency fund, and you’re left with your plot budget.

It’s at this early stage when you need to decide if you’re really serious about finding a plot. Getting the finance in place is critical as vendors won’t be prepared to wait around until you’ve sold your existing house. Either sell up and move into rented accommodation, or get an agreement from your bank to release any equity in your current house to buy the plot.

Next, decide upon a location. Common sense suggests that giving yourself as much flexibility as possible within a commutable radius of both your workplaces would help your chances; however, many experts believe that it’s best to concentrate on a handful of very specific areas in order to really make the efforts necessary in securing your plot.

In general terms, looking for a plot involves the same principles as looking for a house. The majority of plots do at some stage go on the open market through agencies — identify the agents in your area that specialise in plots, as in most areas only two or three agencies sell land. If you do come across a plot for sale on the open market, the chances are that it will be on sale by auction or Dutch auction (see below). Regardless of the sale process, your work begins now.

If you are finding it impossible to find plots on the open market in your area, you’ll need to change your approach — and concentrate your efforts. Plots still exist in every town, village or hamlet — the skill is in identifying them. Once you’ve identified them, then you should approach the owners and sell yourself to them. Present yourself as a local family looking to establish a nice home in the area, willing to take on board their ideas for the design of the new home and build something sensitive to the homes around it. Many homeowners with large gardens are afraid to sell them for fear of them falling into the hands of developers and ending up living next to an apartment block. If you can establish a relationship of this sort, then make an offer – called an ‘option agreement’, which needs to be drawn up by a solicitor – that enables you to buy the plot at a pre-agreed price pending the granting of satisfactory planning permission.

Things to ask

On seeing a plot for sale, you should contact the agents with the following questions:

• Does the plot come with planning permission and can I see the details? (You need to check that the planning permission that comes with the plot meets your requirements in general terms, although don’t forget that you can always re-apply for approval for your own plans at a later date. Also, planning consents only last three years now — ensure that the current consent on the site is still in date.)
• What are your estimates of the end value of the house that can be built on the plot? (This will give you an idea of how the finances will work out. Ideally, the end value of the new home should be around 10-30% more than your total outlay. It pays to get a couple of other estimates from other agents at this stage.)
• Is there anything else I need to know about? (The agent might be able to make you aware of any restrictions on the site, any previous issues with building, problems with neighbours and so forth. At the very least, establishing a relationship at this stage might mean they can reveal some hints as to the level of interest.)

Buying at Auction

Auctions fill most ordinary plothunters with dread. In reality, with a bit of preparation, they can be a great way to find a bargain. Get hold of the legal pack as early as possible in the process – ideally, a couple of days before the auction – and get a solicitor to check through the key issues and look out for covenants, relevant planning permissions, wayleaves and so on. The key to success in the auction room is to have a limit and stick to it — within reason. Don’t be the first to put up your hand — and don’t get carried away. If you know the maximum you can bid to ensure the project remains financially viable, don’t be afraid to walk away. Upon the hammer going down, be prepared to pay a deposit immediately and complete the transaction within 28 days.

Read the rest of the 30 MInute Guide to Self-Build:

• Advice for the First-Time Self-Builder
• Advice on Labour
• Advice on Projects
• Advice on Planning
• Advice on House Design
• Advice on Finance