3-lot subdivision on corner block in Heidelberg West, VIC

Discussion in 'Development' started by Nimai Hawkins, 19th Apr, 2020.

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  1. Nimai Hawkins

    Nimai Hawkins Member

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    Melbourne
    Hi everyone,

    First time posting for me, although I've read plenty of the discussions on here over the last few years.

    I'm looking for some assistance and advice with undertaking subdivision of a corner block in Heidelberg West, VIC. The lot is 843m2 and I would like to demolish the existing dwelling and subdivide the block into 3 separate lots with no common property and sell the vacant blocks for future purchasers to build on.

    I understand that Councils are against vacant lot subdivision in existing residential areas, however does anyone know of instances where a Metro Melbourne Council has approved a subdivision based on a restriction on the Plan of Sub that enforces Building Envelopes and design principles included in an MCP, rather than an exact built form outcome (particularly where there is no owners corp)? I know this is common practice in land estates but can't see why it isn't also a sensible approach for existing residential areas.

    The end game is to create subdivided lots with planning approval to construct dwellings. Ideally I would just obtain a subdivision permit, complete the service connections and crossovers and leave the approval to construct detached dwellings to the end purchasers (so they can build exactly what they want). However, given that Councils are against vacant lot subdivision, this forces a design submission for the dwellings.

    Also, is there any foreseeable issues with titling the lots prior to construction of the dwellings commencing? I gather Councils want a s173 in place to secure the built form outcome before they would grant SOC for the subdivision. Again, a restriction on the Plan of Sub seems like a more sensible way to manage this, however I don't personally have experience with doing this.

    I have attached my feaso and layout plan - any advice or critique on the layout or feaso is greatly appreciated!
     

    Attached Files:

  2. lixas4

    lixas4 Well-Known Member

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    You talk about quite few things in your post, you also use quite a few abbreviations that only those in the industry in vic understand, for others, i will elaborate:

    MCP - memorandum of common provisions: a restriction added to subdivisions generally in estates, they are generally a longer document that can allow a lot of restrictions/requirements for the site

    SOC - statement of compliance, final hurdle in a subdivision

    S173 - agreement with council that encumbers the title and becomes enforcable like a restriction

    Starting with your land sub in metro areas query - from a planning perspective council must consider access/ carparking/ overloooking/ ovsrshadowing/ setbacks etc. They want to make sure what is built on the subdivided lots fits with the area and other lots, that is harder for them after you have sold to seperate owners and they each go for approval seperately, hence they get you to go for approval at the beginning. Outside of melb in regional towns you have more luck at just putting building envelopes instead of having to do a design, but unlikely for lots less than 300sqm anywhere unless in growth areas. Some gowth areas have the small lot code which allow small lots to be subdivided with no plans.

    When tying the design plans to the subdivision most councils require a 173 agreement to do this, however, some allow a restriction to be placed on the subdivision plan, just depends on the council, you dont get to choose, its that councils policy.

    Feasibility - didnt look at your numbers, just had a quick look at your timelines, i would add at least 6 months, or aim for what you have got as a best best case, but factor it taking longer.
     
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  3. Tufan Chakir

    Tufan Chakir Well-Known Member

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    As lixas says, it IS possible to achieve a subdivision creating vacant land. Given the lot sizes you will need to include house plans (unless in a growth zone or the planning scheme schedules say otherwise, but unlikely), elevations etc (full assessment). If approved the Council will tie the development plans by a condition that requires the plans to attach to the titles (the Section 173 Agreement). This is not unusual, or difficult.

    If you think your numbers stack up - get some quality town planning advice. There may be some issues with your plans/footprints/selected houses
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    For finance, its pretty important to have pre build sub, so your purchasers can get their own security for a mortgage.

    If building with end subdiv, expect the 3 dwellings OOT to have val haircut of 20 to 25 %

    Resi type finance is available, though limited lenders

    ta
    rolf
     
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  5. Nimai Hawkins

    Nimai Hawkins Member

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    Thanks for the responses everyone! Really appreciate the experienced insight. I'll remember to steer clear of industry acronyms in future posts.

    @lixas4 I am reasonably confident in the timeframe for the actual subdivision works, are you suggesting adding 6 months to the planning timeframe? Is 10 months to receive a planning permit for this type of application about typical?

    @Tufan Chakir Are you able to provide said quality town planning advice or recommend someone? I'm happy to pay obviously. A planner with experience in dealing with the following would be ideal: 1) Banyule City Council; 2) Corner block subdivisions; 3) Development approvals based on detached volume builder product.

    @Rolf Latham Yes, that's the idea. I do not intend to undertake the build, only the subdivision. Hence it would be a pre-build subdivision.
     
  6. lixas4

    lixas4 Well-Known Member

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    @Tufan Chakir is a planner/arch that works vic wide with a heap of experience.
     
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