I am interested in buying a house with a very large garden which I am thinking of using to build another property to sell. What, if any problems could I be faced with?
Sometimes people see an opportunity to build another property on the land of an existing house. On the face of it, this may look a very tempting proposition, but BEFORE you spend any money on making offers and expensive planning applications you must check the title to ensure there is no covenant on the title which would prevent the construction of another property – regardless of the fact that indemnity insurance may be available.
Even if insurance is available it may prove to be very expensive, or alternatively you may be faced with a substantial payment in order to release the covenant, which could cost anything up to 40 per cent of the potential development value of the land. The message is – see a lawyer right at the outset so he can make all the necessary checks.