How can I sell my land to a property developer?
Property development is a booming business at the moment, with the UK Government estimating that 300,000 new homes need to be built every year to keep up with rising demand. Unfortunately, the UK has a clear shortage of desirable land for development, which has led to major supply and demand issues across the nation.
Landowners can help remedy this situation and can earn a tidy profit in the process if they are looking to sell their land to a property developer. We are going to take a look at what to consider before selling land so that you are approaching this important prospect wisely.
How much is land worth?
In the UK, desirable land is a limited commodity. As such, the price of land today can earn landowners a pretty penny if they are looking to sell.
An acre of farmland in the UK could be worth between £12,000-£15,000, but this can vary depending on several factors, such as location and nearby infrastructure. An acre of land that is adjacent to your home could cost considerably more, as it will increase your property value too.
How difficult is obtaining planning permission on my land?
Obtaining planning permission is an important aspect to consider when selling land. Although your land will be worth more if it already has planning permission, there are a number of obstacles that could make the process quite arduous.
Unless you are well versed in the laws and regulations surrounding planning permission, you will probably find yourself in a complicated situation quickly. Even with a solid understanding of the rules surrounding planning permission, there are other challenges to overcome, such as the fees, obligations and potential appeals needed to successfully obtain permission.
How to value my land
There are a lot of factors that go into land valuation, and the land itself is only a part of the equation. The general rule of thumb is to use the three-thirds pricing model, using land value, building costs and profits to come up with a solid value for the land. To get an idea of this outline, we have jotted down a formula below:
Land value + building costs x profit margin = final land value
This is only part of the story and is a rough guide price, as there are other aspects to consider when tallying up the value of land. Sites of special interest, conservation areas and rights of way on the land will also need to be considered, as they can all add costs to any development moving forward.
So how can I sell my land to a developer?
Navigating the regulations and legal issues surrounding the sale of land in the UK can be a daunting task. It is always a wise decision to seek the advice of a professional property developer who can help guide you through this process.
If you're currently in possession of land that you'd like to sell, contact us today. We can help you get the best price for your land.