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INC Law
INC Law, Solicitor-Advocate
Category: Property Law
Satisfied Customers: 15894
Experience:  LL.B, LPC, LL.M, Pg.Dip, Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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We have client who has purchased a plot of development land,

Customer Question

We have client who has purchased a plot of development land , which held a planning permission that has now expired . The land was purchased from the previous owner who gained the planning permission. The plot of land has a ransom strip for which the council are seeking a 30% uplift from our clients? They claim the land only has agricultural value and so the 30% they require is now from agricultural value to development value?
If the previous owner has already benefited from the uplift , surely it should be down to them to pay the 30% , not our client?, as he has already paid ‘market value’ to the previous owner for the land?
Submitted: 13 days ago.
Category: Property Law
Expert:  INC Law replied 13 days ago.

Hi,

Thank you for your query. I am a Solicitor-Advocate in the UK and will be assisting you with your question today.

If the planning permission has expired, effectively, it is no longer development land and the council would be correct in stating that it would be agricultural land.  Therefore, potentially there could be an uplift value which needs to be factored in.

Had the planning not expired, you would not have this issue.

I hope this answers your question. If you have any further questions, please do not hesitate to ask.

Many thanks,

Customer: replied 13 days ago.
Hi , thanks for answering. The plot in question is marked for development within a business park setting , so planning is a given . The land was purchased after the original planning had been obtained , and even though it wasn’t acted upon , the land cannot go back to being agricultural... or can be guaranteed to be granted planning (however you want to look at it) , so as such , how can it’s value simply be agricultural? The land was actually purchased at a online auction and was actually valued at full development value, although the client did purchase it for under that value, but if it has been auctioned on the www, then surely that is the value of the land?
Expert:  INC Law replied 13 days ago.

Hi,

I note your comments. Unfortunately, this requires further investigation and is not something that can be Nswreed on this forum.

I would suggest engaging a local lawyer to pursue this with the council.

Customer: replied 13 days ago.
Thanks for your assistance
Expert:  INC Law replied 13 days ago.

It's a pleasure.

Good luck