Planning for an extension - does it add value?


#1

I am thinking about applying for planning permission for an extension for my house which is a protected structure in need of work.

My plan was to get the planning permission, price the works, and then build it or flog it. The theory was that the planning permission would add value. However, it is not a very good plan if planning permission does not add materially to the price, in which case I should make up my mind to sell of build now.

Does anybody have a view as to whether having planning permission for an extension would make much of a difference to the sale price if the planning permission is not acted upon?


#2

Purely anecdotally – I believe it adds value. Even if the buyers don’t want to build it straight away, or don’t want to build that exact structure, it gives an assurance that such a structure will be allowed. I know people who bought recently for example and they factored in the planning that came with the place, even though they will not be able to afford to build the extension before the planning lapses.

I couldn’t put a number on it mind you.


#3

Personally a property for sale with the ‘added benefit’ of planning persmission is a massive turn-off for me. I know I could go and get that myself at very little cost. Asking for more money because of it’s development potential reeks of cowboy estate agents. Many of these cowboys have crawled back out of the woodwork in recent years and now every side garden is a site with FPP. I sigh and move on.


#4

I think OP is talking about an extension though, not FPP for a new dwelling.


#5

i think it can’t but help the value, houses in walk-in condition go for a premium over fixer uppers because some people can’t see the potential or don’t want to undertake a project

when i bought my place, i looked at the planning approvals for the houses on the road which helped my decision as it confirmed what type of extension was possible and permissable in that area. I don’t think you need to price the works, that’s someone else’s problem and your EA can sell that aspect of it


#6

Ah OK, well regardless my opinion still sticks. I’d rather plan that myself. Just thought Id use the opportunity to take another pop at cowboy EAs - you know who you are …cough CASTLE …cough CHURCHES …cough cough.


#7

One more consideration, you mention it’s a protected structure - what if the planning application fails? Will that remove value from the house, or is there precedent?


#8

:smiley: I’ve seen Castle working on that sort of bolt-on house in my area. Are they well known for that?

Personally I would also like to plan my own build, but I would (possibly erroneously) assume that a pre-existing grant would make it much more likely that I’d get permission and so would place some value on it.


#9

That is a concern. On the plus side, there is precedent for extensions and there would be pre-planning consultation. On the downside, the neighbours object to and appeal everything and the planner who deals with protected structures is said to be difficult.


#10

It would be a concern alright- On the face of it you would need to play it very safe and go for PP for a modest cuboid extension connected to the existing house by a glass atrium, faithful reinstatement of the existing structure and then do the maths. Anything else would be a risk- especially if you hire an architect that turns out to be a bit pig headed who butts heads with the planners…


#11

Again a digression from the original question. A lot of people stick a box on the back of the house with a view to adding more space, fill the extension with light, but then give very little thought to space that is left behind. Very often this will be a dark space where once there was light. Sometimes less is more.


#12

Architect is experienced and sound. I can spot an Architect with no cop on from miles away.


#13

Beware beware.

Rejected planning applications also stay on the public record too.

This could potentially reduce the value of your property on the open market.