How to sell land for development
Updated: Jul 30, 2022
Are you thinking about selling your land for development? It can be a great way to make some money, but it's important to understand the process first. In this blog post, we'll discuss how to find out how much your land is worth, and what factors influence the valuation. We'll also look at the pros and cons of selling land with planning permission on it already, and why you may choose not to do that.
If you're ready to sell, we'll show you how to go about doing it!
Land valuation: How much is my land worth?
If you want to sell land to a developer, the first thing you'll need to do is assess how much that land is worth. This is called a land valuation. There are a few factors that can influence the value of your land, including:
- The location of the land
- The size of the land
- Whether or not there is planning permission on the land already
- The condition of the land
Selling Land to a Developer
Once you've decided that you want to sell your land for development, the next step is finding a buyer. This can be a bit tricky, as there are lots of developers out there and not all of them are interested in small parcels of land.
One way to find a buyer is to go through an agent. An agent can have connections with many different developers, and they will know who is looking for land in your area.
When you're choosing an agent, make sure to ask them about their experience in selling land for development. They should be able to provide you with case studies or examples of recent sales they've made. Not many agents have experience selling land.
What are the pros and cons of selling land with planning permission?
There are pros and cons to selling land with planning permission on it already. The pros are that you can get a higher price for your land, as the developer knows that they won't have to go through the process of getting planning permission. This can save them a lot of time and money. However, the cons can outnumber the pros when it comes to selling land with planning permission. This is largely due to the expense and time cost you'll incur in getting it, and the uncertainty of a return - planning permission takes a long time to obtain and is often quite expensive and is very risky; you may spend a lot of money trying to get planning permission, but then not get it.
At the end of all that additional work, you may find it harder to sell land with planning permission, as you may have planning permission for certain types of houses and flats which a developer doesn’t want.
If you do want to obtain planning permission for your land, here's what that process will look like:
- You'll need to hire a planning consultant to help you with the application
- You will need to submit a detailed planning proposal
- There will be a public consultation, and your neighbours will have the opportunity to object
- If there are no objections, the council may approve the proposal
It can take six months to a year to get planning permission, and the costs can vary depending on the size and location of your land.
Why you may choose not to sell land with planning permission
There are a few reasons why you may choose not to sell land with planning permission. Firstly, as we mentioned, it can be quite expensive and time-consuming to obtain planning permission.
Secondly, there is always the risk that your application will be rejected. This can happen for many reasons - perhaps the council doesn't think your proposal is appropriate for the area, or there are objections from your neighbours.
Consult NFC Homes
As you can see, there are many factors that contribute to the value of the land and how much a developer will need to build on your land. Only experts should be hired to carry out a professional land valuation, but it doesn't hurt to have a piece of insider knowledge on the land valuation process. Especially important when it comes to planning permission. Here at NFC Homes, we are always looking for new sites for development, so if you own land that you'd like to sell, contact us today and our team of experts will be more than happy to assist you.