Buying a holiday home with a river flowing through the property
Insight
Every month the Farrer & Co Residential Property Partners give us a brief insight into their working lives. This month we look back on a second home purchase that led to interesting discussions on riparian ownership (ie ownership of land adjoining a watercourse) and Biodiversity Net Gain.
The Brief
We were recently instructed by a married couple on the purchase of a considerable holiday home comprising 24 acres of idyllic countryside in Devon. The main house is set in a sheltered valley and opens on to a spectacular terrace which leads to a path that winds down the hillside to a river that flows through the property.
Executing the Brief
Our clients were particularly concerned to understand their rights and obligations regarding the river. They had also heard that owning rural land might present an opportunity if it can be offered as a habitat bank to developers who cannot fulfil their requirements under the new Biodiversity Net Gain (BNG) regulations on sites being developed, so they asked us to explore this.
We reviewed the title and raised enquiries of the seller which confirmed the section of river which passes through the property is wholly owned (riverbed and banks). The fishing rights had not been separated from the ownership of the land (or leased or licenced to anyone) so we could confirm to our clients that they had an exclusive right to fish (subject to those fishing who are over the age of 12 obtaining a licence from the Environment Agency).
We explained to our clients that they would be responsible for ensuring the river is not polluted and that it can flow through the property unobstructed and without diversion (so the rights of others are not impacted). This will involve maintaining the banks and the bed of the river to keep them clear of vegetation and debris (even if the debris originated from elsewhere). They will also need to monitor for invasive species (eg Japanese knotweed) and ensure it is removed.
Our searches involved some detailed flood risk assessments which revealed a minimal risk, but our clients have also appointed a flood risk consultant who will work with them (and the local authority) to ensure the flood defences for the property are sufficient (and that they work in harmony with any flood defences put in place by the local authority and the Environment Agency).
In terms of BNG, our clients were keen to promote a positive, wildlife friendly use of the acreage that comes with the house. We explained that there are, broadly, two options: the first involves working with a single developer from the outset, to create a specific habitat to meet the BNG requirements for a specific development. The second option is to create a “habitat bank” – either themselves, or in partnership with one of a number of habitat bank providers – where the “biodiversity units” are created first and then sold to developers at a later date. In all cases, the habitats must be managed by the landowner for the statutory 30 year period. The market for units is new and has yet to settle, but it would be reasonable to expect between £25,000 and £35,000 for a single unit. As a starting point, we instructed an ecologist to carry out a baseline habitat survey to check what habitats were already present and what potential there was to create or enhance more – and how many biodiversity units this might yield.
The debrief
A simultaneous exchange and completion took place within a month of us being instructed and our clients are currently in Devon with their three children enjoying their first summer holiday in their new home.
Our clients were excited to learn that the property could be a suitable site for promoting biodiversity in a way that could realise a financial return, so we put them in contact with an excellent local land agent who is helping them to explore this avenue further. Our article “Biodiversity Net Gain is for Country Houses too” provides some more detail on the options available.
We are always happy to discuss the conveyancing process and how to manage a transaction.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
