Buying development land from a council – some pitfalls
An intended development includes the acquisition of land from a local authority. The price is keen because the developer is prepared to submit to certain terms. A possible snag lies in the statutory requirement for the Secretary of State’s consent to be obtained if the disposal is to be for a consideration less than the best that can be reasonably achieved. How does this affect the developer?
As explained by Keith Wilkinson, of Eversheds, in
Finding inconsistent case law authority as to which non-monetary benefits can be included in the required consideration, Keith suggests some useful ways to nip the problem in the bud.
Buying development land from a council – some pitfalls
An intended development includes the acquisition of land from a local authority. The price is keen because the developer is prepared to submit to certain terms. A possible snag lies in the statutory requirement for the Secretary of State’s consent to be obtained if the disposal is to be for a consideration less than the best that can be reasonably achieved. How does this affect the developer?
As explained by Keith Wilkinson, of Eversheds, in All things considered Estates Gazette 14 September 2002, p152 (continued in First considerations Estates Gazette 21 September 2002, p202), the developer can, thanks to section 128 of the Local Government Act 1972, stop worrying once his contract has been completed. At any other time (even after exchange of contracts), there is a risk of the deal falling apart, particularly if an eleventh-hour bid is received from another quarter.
Finding inconsistent case law authority as to which non-monetary benefits can be included in the required consideration, Keith suggests some useful ways to nip the problem in the bud.