Research carried out by FPDSavills, the international property group, and parent to one of the leading independent mortgage brokers Savills Private Finance, has highlighted that in low density suburbia we are now seeing instances where the actual value of a house is lower than the value of the plot it stands on.

Significantly, in areas where there are low density housing types, such as 1930’s bungalows or post-war semis, homeowners are being offered considerable sums by developers to buy the property for them to then demolish and build high density housing on the land. Homeowners themselves are also taking advantage of land values and plot sizes in order to build larger homes on the same plot, at a fraction of what it would cost to buy a property of the same size in the vicinity.

Simon Jones, Director at Savills Private Finance, comments:

‘’ We are seeing an increasing number of clients adding value to housing plots by adding additional living space or indeed demolishing their existing property in order to build a larger one. A number of lenders now offer mortgage products specifically designed for those clients looking to build a new home.’’

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

(25 November 2003)