Selling Land - Frequently Asked Questions
A frequently asked question I hear is "How much is my land worth?" or "How do I go about marketing my land for sale?"
Without doubt, selling land or property has often had a stigmatic impression of worry and stress, yet, it need not be a troublesome process if done correctly. Here are some helpful pointers to make selling land a smoother process for all parties involved.
How much is my land worth?
Q: How much is my land for sale worth?
A: The most important factor in deciding land value is whether the land has planning permission or not. As a rough guide, a plot of land for sale with planning permission, on average, would be worth around eight to ten times the value of land for sale without approved planning. If the land is residential - an approximate rule of thumb is that land is accountable for one third to one half of your property value.
Other factors that will determine the value of land are - location, size and future development potential.
Agricultural land of 10 acres and above
In theory it should be quite simple to answer this question for land that does not have planning permission as the Land Registry regularly produces figures showing the acreage value of "agricultural" land. However expertise is required when the land is close to existing development, is in an area targeted for future development, has good access to the road network etc.
When valuing land that stands a chance of gaining future planning permission because of its location we have to include "hope value". The "hope value" is what a purchaser is prepared to pay over and above the agricultural value because he or she believes that the land may have a chance of being developed at some time in the future.
Quantifying this "hope value" is an inexact science and is difficult to value even for people with many years of experience in the industry. The only true way if for sellers to advertise the land on the open market. However I appreciate that, for many reasons, sometimes people are unwilling to openly advertise their land for sale.
Pony Paddocks
The value of "Pony Paddocks" is mainly dependent on the location, the road access, the gradient of the land (level), running water and the shelter available.
Woodlands
The value of "Woodlands" is mainly dependent on the location and the road access.
Brownfield Land
Every piece of brownfield land is unique depending what development the land previously contained. The price of the land will need to take account of clearing and decontaminating the land. Decontamination charges vary widely but can easily escalate should substances such as diesel or asbestos be found on the land.
As such a visit to the site is essential to value brownfield land.
Plots with planning permission
The value of plots of land with planning permission is highly dependent on the planning permission and so sight of the approved planning details are essential.
The only way to find out the true open market value of your land is to offer it for sale on the open market.
Q: Who would in be interested in purchasing my land for sale?
A: Parties interested in buying land would include land investors, property developers, horse and pony owners, farmers and self builders.
Q: Where should I sell my land?
A: There are many places where you can advertise your land for sale; we, of course, would recommend that you use UK Land Directory. We have tens of thousands of buyers who view the site each month and we allow you to advertise your land for sale at no cost. We can also forward your details to our panel of land buyers. The land buyers who have interest in your land will independently contact you to advise you of its value and of its salability.
Alternatively, you could visit your local estate agent or land agent. The UK Land Directory lists estate agents who regularly market land.
Q: What is involved in selling land?
A: Having found a buyer, you should use your own independent solicitor to act on your behalf. I make no exceptions to this advice. This will ensure that the sale is carried out with all legal documentation in place and that both vendor and purchaser fully understand the agreement and that all aspects of the agreement are transparent.
Your solicitor may draw up a contract of sale and forward it to the buyer or their solicitor. You may wish to ask for a deposit while the legal documents are processed. A full explanation on why to use a solicitor can be found here.
Further Reading:
Nov 2005