What is the process of selling land?
If you are considering placing land for sale and think it might have development potential, you may be wondering what the process is? There are a number of factors to consider that will influence how you manage the sale of the land such as how to value land and whether or not you should selling the land with planning permission. In this article, we are going to discuss what the process of selling land entails so that you are better informed when the time comes to sell your own land.
What is the process of selling land?
There are three main routes to selling land in the UK that you should consider. Below is a breakdown of these three routes and a few considerations to help you decide what option is best for you:
1. Selling land without planning permission
Selling land without planning permission can be the easiest way to sell land and as a result, it is also usually the fastest. You might not get the highest price from the sale of land if you don’t have planning permission, but you don’t have to pay for planning permission either. The process for applying for planning permission is known to be laborious, drawn-out and quite expensive. It is very common for planning permission on land to cost anywhere from £100,000 to £300,000 and take a long time to obtain. There are lots of tests and inspections required before planning permission can be obtained, so ideally you would avoid all of that by selling land without planning permission. Unfortunately, many investors and developers prefer to buy land with planning permission because it guarantees their project timelines and eliminates the risk of failing to obtain planning permission. This is not always the case though, with specialist developers such as NFC Homes who focus on land that doesn’t have planning permission.
2. Sell the land on a ‘subject to planning’ basis
You can sell the land to a developer on the condition that the buyer can successfully secure planning permission. The route gives you a higher sales value, whilst letting the developer take the risk of getting planning permission and bear the cost. The developer pays you the price that the land would have, if it had planning permission.
3. Selling land with planning permission
Selling land with planning permission might allow you to get the highest figure for the land you are selling, but in our opinion, it might not offer the best value. As discussed, planning permission can be a difficult thing to obtain on land. It can take years and cost hundreds of thousands of pounds - and there is no guarantee that you will obtain it. It is far better to let a developer take the risk, as discussed in option 2, whilst you still receive the same higher price.
Finding the right buyer when selling land
There are a few different possibilities when looking to find buyers for your land. You could try to sell the property at auction, for example, or work through an estate agent to help you find the right buyer. Alternatively, you could speak with property developers like NFC Homes who will have extensive experience in buying land for the purpose of development. All of these options will have their own merits, but we feel that working with a developer is the most effective approach to selling land with development potential. They will provide a higher sales price and take the risk of getting planning permission.
Get in touch with NFC Homes
If you own land that you're considering selling or would like further advice about land value, planning permission and the buying and selling process, then our experienced team is on hand to answer your questions.
Just contact us our team today for your no-obligation advice.