Commercial Property – Residential development
Residential development has become a major sector in the North East in the last few years. Both residential and mixed - residential and commercial developments - are key in providing the housing and other infrastructure necessary to ensure a healthy and thriving economy.
It is really important to get our legal team involved at the very outset of the project. The legal work starts with the site acquisition, both dealing with the purchase itself and also checking the title and local authority records to ensure that there are no likely sticking points. Most acquisitions are conditional, with the main purchase not going through until the planning permission is granted. The local authority’s requirements for a development can be wide ranging, from the installation of a new access road to the provision of large scale infrastructure arrangements and community amenities.
Sometimes, the seller of the land will want to receive additional money if the development goes well. This is generally known as “overage”. Overage agreements are needed to ensure that both parties know how much is to be paid and when. Overage payments can be substantial and so clear wording in the agreements is key.
Once the site is acquired and the work is underway, the sales of the final plots need to be organised. Standard documentation is normally produced by the developer, which will deal with the specific needs of the site, including when completion is to happen and what documentation needs to be provided.
Many purchasers will use the government backed Help to Buy scheme. If this is being used, it will need to be built into the documentation. Right to Buy will also need to be dealt with when the development includes an element of social housing.
At Coles, we specialise in development, and work for a number of developers, both large and small both regionally and nationally from not only our key commercial property locations at York, Harrogate, Northallerton and the Tees Valley but through our entire network of 10 offfices, bringing our experts to your doorstep.