premises or land available?

[Esk247]

just a random question that was thrown up by a website customer this week. they don't have the money to buy property outright having been quoted ridiculous prices on property they were looking at e.g. full market value of £500,000 even though the site is derelict and half burnt down!

the idea is that they take over a derelict building for free and carry out the renovations/repairs to good standard for the business they want to use it for...in return..the owner gets to charge a ground rent once the work is done or they retain ownership of 60% of the land subject to lots of paperwork ofcourse.

is this a bad idea? we just keep getting quoted full prices for property as if the building was ready to move in to.

alternatively what about re-using derelict council buildings e.g. theatres/cinemas? they just need a big building effectively.

 

[i234i]

whatever the building you'll have to pay.
and usually with derelict buildings its the land that holds the value.. same for council.

so you'll still need to pay out!

 

[Esk247]

thought so..thats darn annoying! One of the places they were looking at is totally derelict but the owner wants in excess of £750,000 for the building plus land even though its been empty for 20 years and he has no intention of ever doing anything with it.

 

[oldeagleeye]

ESK. These people will hold on forever till the right price is offered. It is called a 'Land Bank' and safer than any other type bank too. The only hope I think that you have is go to the council within what has been designated an Enterprise Zone. They are enormous grants for redevelpment especially if your venture provides employment for more than 5 people. Rob

 

[Esk247]

oh thanks rob!

the aim would be to employ people and provide teaching facilities for certain subjects so it kind of fills every criteria!

isn't there a case for the council taking over a building thats derelict if we say that we want to convert it in to a useful building and prevent it from further vandalism/possible destruction?

 

[altyfc]

isn't there a case for the council taking over a building thats derelict if we say that we want to convert it in to a useful building and prevent it from further vandalism/possible destruction?

Why should they take over a building they have no legal right to?

 

[oldeagleeye]

Talk to the Council. They do take over buildings that they have no right to. It's called "compulsary purchase" and happens when the planners have projects in mind like a ring road etc. The Council may well have peoperty already on the books then and as they are cutting back on capital investment or a scheme cancelled be prepared to dispose of.. They are also into developing brown field sites. Old factories etc where the company has gone bust and they are not getting any rates. Talk to the council then and involve your local MP. He or she would love to take some of the credit for creating jobs and can provide a fast track to the decission making Councillors.

I think however that you are looking at this the wrong way ESK. What you should be looking at is leasing the land from the council and with the aid of grants bringing the site to life. In some enterprise Zones you can also get 5 even 10 years rent and rates free.

Think major car manufacturer then bringing jobs to hard hit mining areas - only on a smaller scale. That is the sort of deal that they get. That anyone can get. Don't forget. Adding admin costs and the loss of tax revenue it costs the government over £100,000 a year for 5 people claiming dole. If they are claimng housing benefit too the council lose another £25K on top of £25 rent loss. Total £150,000 in one year. The governments own figures are actually that is is worth paying out £50K per job created - hence the huge grants. Rob

 

[tony84]

How big a property are you looking for?

With times like they are now, ive seen retail premises in busy villages for around £150k, very easy to turn into something profitable.

If you looking for something out of town a little then you should be able to find somehing less than that. But if your looking for something in acres of land with a huge property then you obviously dont need planning permisiion etc which is why you would be paying more than an empty plot of land.

Have you trie dproperty auctions? Its all about supply and demand, if someone came upto me asking me to buy something i would ask for a higher amount than if i was wanting to sell it.

 

[Esk247]

thanks tony! got your pm about that website too! very handy as there are lots of websites but all with different locations.

there are a few empty properties and unfortunately a listed building that has been burnt down by 'vandals' apparently! but hey ho

i don't mind if someone else owns the building though..they own it..we restore it and put it back in to use!

just very hard getting agreement even for that..they just want to own the land and don't want any development or restoration on the site!

quite frustrating