Hi. I am new to this forum, and seeking a little advice. I will try to keep this short as possible. I come from a farming background but have spent last 22 years working in construction, and have over that time built a small business with 12 employees. I rent a very cheap shed and yard space (about 5000ft shed) and about 5000ft external yard space from a local retired chicken farmer and another neighbour. Been there for 7 years and its very cheap, very discreet and perfect apart from the lack of lease or permanency. I need to have a plan B in case this site ever becomes unavailable, although hopefully we will be here as long as we need. My family still own and run a small farm within my work area (where I grew up) and parents are reaching retirement age and thinking about the future. My sibling is partner in the farm and I have no interest in the farming business. I have been given the opportunity of building an Agricultural Storage shed on an outlying field with lane and road access and services nearby. I have circa 60K available personally to fund the project (which I know isn't enough!)
Have been through it with accountant and this would be my personal project and nothing to do with my LTD business at this stage. I would loan the money to the farm for them to build the shed and get the VAT relief. After 3 years the 2 acre plot and shed it would be transferred to me FOC. I would need to have legal agreements in place to protect myself in case of death or disagreement etc, and there are a couple of capital gains issues etc, but that is mostly in hand and discussed.
The shed would obviously only have consent for Ag storage, but would provide potentially the chance for a back up location for my business. I am reasonably aware of the planning limitations etc, but anything I did would be fairly slow and discreet and subtle, and I have seen plenty of similar local set ups not have a problem with change of use from storage if challenged. I hope I would never need it, and be mainly treating this as an investment for the future and my retirement (currently only 41 years old) and likely be letting most of it as storage space to local farmers/contractors/family just to keep it from sitting empty and provide some income to allow the building and access to be gradually improved over the years, thus increasing its value and usability. If life goes to plan then I don't need it to provide me with any income for the next 25 years.
My biggest dilemma is that as far as I am aware, this is a one shot chance to get a shed up-to 10000 sq ft with only permitted development rights as once the site is split off from the farm it will be too small to qualify again for further building under permitted development rights and require planning permissions.
Obviously material prices are chaotic, but I have recently seen £12 a square foot quoted for complete job, which with my £60K budget would only maybe buy me a basic 5000ft shed with roof/floor/walls/door etc (groundworks and access track and services all additional cost) I hope I am being semi realistic with prices, I wouldn't build till spring/summer 2023, but would get groundworks sorted this year.
My main question is... What needs to be built to qualify as completed? Can I build a 5000 sq ft shed with roof and cladding, and then just have another 5000 sq ft of 2 x lean to space with galvanised steel framework only erected ready for completion at a future time when desired/ affordable etc?
Thanks for reading this and look forward to your opinions.
Ben
Have been through it with accountant and this would be my personal project and nothing to do with my LTD business at this stage. I would loan the money to the farm for them to build the shed and get the VAT relief. After 3 years the 2 acre plot and shed it would be transferred to me FOC. I would need to have legal agreements in place to protect myself in case of death or disagreement etc, and there are a couple of capital gains issues etc, but that is mostly in hand and discussed.
The shed would obviously only have consent for Ag storage, but would provide potentially the chance for a back up location for my business. I am reasonably aware of the planning limitations etc, but anything I did would be fairly slow and discreet and subtle, and I have seen plenty of similar local set ups not have a problem with change of use from storage if challenged. I hope I would never need it, and be mainly treating this as an investment for the future and my retirement (currently only 41 years old) and likely be letting most of it as storage space to local farmers/contractors/family just to keep it from sitting empty and provide some income to allow the building and access to be gradually improved over the years, thus increasing its value and usability. If life goes to plan then I don't need it to provide me with any income for the next 25 years.
My biggest dilemma is that as far as I am aware, this is a one shot chance to get a shed up-to 10000 sq ft with only permitted development rights as once the site is split off from the farm it will be too small to qualify again for further building under permitted development rights and require planning permissions.
Obviously material prices are chaotic, but I have recently seen £12 a square foot quoted for complete job, which with my £60K budget would only maybe buy me a basic 5000ft shed with roof/floor/walls/door etc (groundworks and access track and services all additional cost) I hope I am being semi realistic with prices, I wouldn't build till spring/summer 2023, but would get groundworks sorted this year.
My main question is... What needs to be built to qualify as completed? Can I build a 5000 sq ft shed with roof and cladding, and then just have another 5000 sq ft of 2 x lean to space with galvanised steel framework only erected ready for completion at a future time when desired/ affordable etc?
Thanks for reading this and look forward to your opinions.
Ben