Agricultural clause on property... Any advice?

[chrissyw28]

Just looking for opinions on this situation.

My parents(in their 60’s) had their home built in 1974 in a rural area, and ran their own garden centre (greenhouses etc) on the land until last year when my dad retired.

The house/land was built with an agricultural clause attached to it. They were unable to get a mortgage at the time due to the clause, but were able to get a bank loan and they have now paid this off so the house/land is their own.

They are now looking into what would happen if they wanted to sell.

They have been told by someone that works for their local council that because of the agricultural clause, they would first have to offer the property/land to the agricultural/farming community.

And they would have to offer it at 2/3 of the value (i.e. knock a third off!)

At the moment, due to circumstances, my brother (their son) is living with them, and the council have also told them that if my parents died, then my brother would not be able to live in the property (even though it would be half his!)… all because of this clause.

The council says there is no way to remove the clause either…

My parents didn't know any of this when they had the property built.

Does anyone have any advice or knowledge of this sort of thing?

[pdk]

Has the house been used by non agri tenants at all and if so for how long??

PETER

NOTE: Peter Kyte BSC (Hons) DipTP MRTPI CGeog is an official LandlordZONE Topic Expert… For more information on Peter D Kyte Associates and Enabling Projects please see the websites at http://www.enablinguk.com and http://www.development-seekers.com. Any advice given by Peter Kyte in this Forum is of a general nature only and should not be taken to be a final and binding planning opinion. Based on any initial advice given you are strongly advised to seek a further professional opinion, which may involve a site visit and a detailed analysis of the issues... For information on the sort of work Peter undertakes please see TRACK RECORD (http://www.enablinguk.com/track.html), WORKING WITH INVESTORS (http://www.enablinguk.com/ur-property-investors-planning.html), and PROJECT TYPES (http://www.enablinguk.com/planning-project-permission-appeal-UK.html)...

[jeffrey]

Is this clause in:
a. the title deeds/HMLR registers; or
b. the Planning Permission?

In case "a", the party whose land has the benefit of the covenant could agree to release it (perhaps on receiving £££).

[mountie]

I have valued private garden centres, smallholdings etc which have owners accommodation within the grounds with ties for lending purposes.

Most local authorities are reluctant to release the covenant, mainly in fear that the ground then becomes brownfield and open to potential development.

If your parents want to move then the tie will limit any future occupier to someone who is indeed in farming/rural/forestry employment. The value with the tie will be market value less at least 30% depending on the location and whether there is likely to be any demand.

Would it not be worth trying to dispose of the property as an operational garden centre or at least a 'garden centre site' with living accommodation? You may get someone who wants a garden centre or similar commercial use.

[chrissyw28]

Has the house been used by non agri tenants at all and if so for how long??

PETER

NOTE: Peter Kyte BSC (Hons) DipTP MRTPI CGeog is an official LandlordZONE Topic Expert… For more information on Peter D Kyte Associates and Enabling Projects please see the websites at http://www.enablinguk.com and http://www.development-seekers.com. Any advice given by Peter Kyte in this Forum is of a general nature only and should not be taken to be a final and binding planning opinion. Based on any initial advice given you are strongly advised to seek a further professional opinion, which may involve a site visit and a detailed analysis of the issues... For information on the sort of work Peter undertakes please see TRACK RECORD (http://www.enablinguk.com/track.html), WORKING WITH INVESTORS (http://www.enablinguk.com/ur-property-investors-planning.html), and PROJECT TYPES (http://www.enablinguk.com/planning-project-permission-appeal-UK.html)...

No, my parents have lived there ever since it was built.

[chrissyw28]

Would it not be worth trying to dispose of the property as an operational garden centre or at least a 'garden centre site' with living accommodation? You may get someone who wants a garden centre or similar commercial use.

I don't think this would be possible, as the greenhouses etc, are in a rather poor state now, and I'm doubtful someone would want to take the 'garden centre' on as it stands..

[pdk]

If the house has been used outside the agri condition for 10 years then you may be free of it!! It needs a bit more reseacch...

PETER


NOTE: Peter Kyte BSC (Hons) DipTP MRTPI CGeog is an official LandlordZONE Topic Expert… For more information on Peter D Kyte Associates and Enabling Projects please see the websites at http://www.enablinguk.com and http://www.development-seekers.com. Any advice given by Peter Kyte in this Forum is of a general nature only and should not be taken to be a final and binding planning opinion. Based on any initial advice given you are strongly advised to seek a further professional opinion, which may involve a site visit and a detailed analysis of the issues... For information on the sort of work Peter undertakes please see TRACK RECORD (http://www.enablinguk.com/track.html), WORKING WITH INVESTORS (http://www.enablinguk.com/ur-property-investors-planning.html), and PROJECT TYPES (http://www.enablinguk.com/planning-project-permission-appeal-UK.html)...

[mountie]

I don't think this would be possible, as the greenhouses etc, are in a rather poor state now, and I'm doubtful someone would want to take the 'garden centre' on as it stands..

You need to get some proper advice perhaps from leisure and rural agents.

Although i think it is probable that it will not be marketable at full market value due to the agri clause.