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Tag: Development Site

How do I sell my land?

Posted on by Sophie Winter

If you’ve come into possession of developable land through inheritance or simply are tired of gardening duties, now is an ideal time to consider your selling options. In this blog, we’ll explore the various approaches you can take and the best selling option suited to your needs.

What are the different options?

Typically, there are four methods for selling your land:

  • Outright sale
  • Sale subject to planning
  • Sale with existing planning permission
  • Promotional agreements

Naturally, the choice of sales option will depend on your specific situation. That’s why it’s vital to explore every path with the help from a land expert before committing to any decision.

Unconditional sale

If you’re in a rush to sell, this might be the most suitable choice for you. With an unconditional sale, you’re selling the land in its current state. This means without planning permission and offering no assurance of future development potential.

Should a buyer present an offer, the risk they assume will be reflected in the price they propose. Additionally, the buyer will also factor in the time and financial resources necessary to pursue planning approval when making their offer.

When everything is tallied, depending on factors like size, location, and market demand for your land, the risk element can significantly impact your financial outcome.

Our recommendation? If time isn’t of the essence, it might be wise to consider alternative avenues.

Subject to planning

Also referred to as a ‘conditional contract’ or an ‘option agreement’, the subject-to-planning method is the most common selling approach for good reason.

Under this arrangement, the buyer retains the option to retract from the transaction should the planning application fail. Ultimately, it means that they are willing to offer a slightly higher price for your land, recognising that the financial risk is lower compared to an unconditional sale.

However, before committing to a conditional contract, it’s essential to consider the timeframe involved. Even if a buyer expresses interest in your land, this sales approach can be time-consuming. It can often take months, and sometimes even years, for planning permission to be secured and for funds to be paid out.

Undoubtedly, it’s a slow burner! But, if you have the luxury of time and aren’t in urgent need of cash, this could be the best choice for you.

Selling with planning permission

Selling land with planning permission puts you in a strong financial position. And it allows you to request a premium price for your property.

Often referred to as ‘shovel-ready,’ this type of sale indicates that the site has obtained all necessary approvals and technical assessments, making it highly attractive to potential buyers.

With the reduced risk and enhanced convenience associated with these transactions, buyers have the flexibility to proceed with their development plans, adjusting details like the number and mix of housing units according to their preferences.

As you may have gathered, this option offers a fast-track route for buyers. So make sure that your price reflects having the added value of secured planning permission.

If you’re wondering how much planning permission can affect pricing, land with outline consent to build housing can be worth up to eight times more than land without approved planning.

So, if you’re in no rush, this option undoubtedly has the potential for maximising your profit. But remember, various factors influence land value, including:

  • Demand for land in your area
  • Accessibility
  • Local available services and amenities
  • Market trends – i.e value and property prices
  • Physical attributes and characteristics

Promotional agreements

Commonly associated with larger pieces of land, promotional agreements entail developers leveraging their financial resources, expertise, and industry knowledge to navigate the planning process with the goal of obtaining planning permission.

Once permission is secured, the landowner agrees to sell their land, with the promoter receiving a predetermined share of the sale proceeds. The percentage of the promoter’s share depends on various factors. These can include the size and location of the land and the level of risk involved.

With this arrangement, the landowner is not burdened with any financial risks—the responsibility lies entirely with the developer (promoter). From the outset, the developer is expected to finance the entire process, including legal expenses associated with initiating the agreement.

This approach alleviates financial concerns for the landowner and is certainly worth considering as a viable selling option.

Have you got a piece of land to sell?

If you have a site that may be suitable for a new housing development, you might have a golden opportunity. Given the current high demand for land in the UK, now is an ideal time to explore these methods to sell your land.

For more advice on how to sell your land, get in touch with a our experts at CR Real Estate today.

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How to value garden land

Posted on by Sophie Winter

Thinking of selling your garden land? It’s important to determine its value accurately. While valuing land can be complex, understanding the right method and factors affecting its value can help you estimate its worth effectively.

CR Real Estate are here to help with our land valuation guide, perfect for sellers looking to learn about calculating land prices, choosing the best valuation method for their property type, understanding the benefits of valuing land, and more.

What is garden land?

Garden land, as the name suggests, refers to land associated with a property. In the property context, it is land that homeowners can sell to buyers intending to utilise the space for purposes such as additional development, land assembly, or commercial use.

How do you calculate garden land value?

The price of land per square meter in the UK varies depending on the location. A study conducted by The Grass People examined 50 locations across the UK, revealing an average price of £1,526 per square meter. The valuation of garden land considers several factors, including location, size, zoning, topography, and development potential. Various methods are used for land valuation:

  1. Sales comparison method – This involves comparing the property to recent sales of similar properties in the area.
  2. Income method – This estimates the income the land can generate over time.
  3. Cost method – This estimates the cost of replacing the property, minus depreciation.

What is the best method for valuing land?

The approach for valuing land varies based on the property type and the reason behind the valuation. For those involved in the sale or purchase of garden land, the sales comparison method is commonly used. On the other hand, if the land is intended for commercial or investment use, then the income method might be a more suitable.

Factors considered during a land valuation

Various factors can influence the valuation of garden land in the UK, including:

  1. Location: The land’s value is significantly influenced by its location. Properties situated in sought-after areas with excellent transportation links, amenities, and good schools tend to have higher value compared to those in less desirable locations.
  2. Size: In general, larger properties tend to be more valuable than smaller ones. But this can be dependent on the specific area.
  3. Zoning: Properties designated for commercial or residential use typically have higher value than those zoned for agricultural or other purposes.
  4. Development Potential: Land with potential for residential or commercial development is usually more valuable than land with limited development possibilities.
  5. Development Controls: When developing garden land, the construction will be governed by various rules and regulations. These include land use, land tax, premise level, and floor area ratio. These factors are considered in determining the land’s price.
  6. Land Records: Verified records of past purchases and buyers are crucial for establishing ownership and resolving disputes. Land lacking proper verification may be cheaper but comes with the risk of potential disputes.
  7. Topography: The land’s topography, including slope, drainage, and soil quality, can impact its value. For instance, land on a slope or hill may be more expensive due to construction costs.
  8. Access: Accessibility to roads, public transport, and amenities is an essential consideration. Well-accessible properties generally have higher value than those with poor access.
  9. Age of Structure: While more commonly applied to built properties, the age of structures in the vicinity can also affect land value. Land in areas surrounded by older buildings may be considered less valuable compared to land in newer developments.

Benefits of having your land valued

Knowing the value of garden land offers numerous advantages. For sellers, understanding the land’s value can help you set a realistic asking price and negotiate with potential buyers. For buyers, having knowledge of the land’s value will help to avoid you overpaying and making informed decisions regarding the purchase. Additionally, land valuation can also be beneficial for tax-related purposes. These include the calculation of capital gains tax, inheritance tax, or stamp duty land tax.

How do I value my plot of land?

We would always recommend seeking guidance from a professional valuer or an experienced estate agent familiar with conducting land valuations in your area. Their services are crucial for establishing a realistic asking price. If the price is set too high, assistance may be required in finding a buyer, whereas setting it too low could result in missed potential profits. It’s essential to bear in mind that the value of land is subject to fluctuations over time, making it advisable to obtain a fresh valuation if the land remains unsold within a reasonable timeframe.

For those in the process of buying land, a professional valuation can help to determin the fairness of the asking price. They will also help evaluate the land as an investment opportunity. Consider hiring a surveyor to examine the land’s condition and identify any potential issues.

Looking for a land expert?

If you are considering selling your land or want a valuation, why not contact our expert team today to discuss this opportunity and how we can help you. 

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Could you benefit from selling land?

Posted on by Sophie Winter

For landowners, conducting thorough research to explore the possibility of selling a section of their land for residential development is worthwhile. It is advantageous to identify a specific area on the site that could have an independent access point rather than a shared one. This approach preserves the integrity of the remaining land that won’t be developed.

Evaluating the land’s value, associated expenses, and potential profits from its development is crucial. Additionally, being mindful of local guidelines and regulations related to residential area development is essential to ensure compliance and smooth progression of the project.

Are you thinking about selling a section of your land?

Selling land can be intricate, particularly if you are unfamiliar with the local market and regulations. Nevertheless, given the high demand for housing development land, both councils and developers actively search for suitable residential plots.

Considering this demand, the current market presents an excellent opportunity to sell your land, potentially fetching a favourable price. Before initiating the process, it is crucial to familiarise yourself with local regulations and market conditions. Seeking assistance from qualified professionals such as our Land and New Homes experts and partnered solicitors is advisable. We can provide you with valuable guidance, ensuring you understand the process and assist you in securing the best possible deal for your land.

How much is my land worth?

The value of a property is influenced by both its location and the scale of the development, along with its impact on existing properties. For more information on land values read our blog ‘How to value my land‘.

What do you need to consider when selling land?

Speak to your neighbours

Engaging in conversations with your neighbours is wise, as their support will be necessary for future planning applications. In certain instances, they might even be open to selling a portion of their land, which could lead to the formation of more extensive property development sites.

Current mortgages

Before moving forward, secure written consent from your mortgage lender. Maintain regular updates with them throughout the process, especially if additional funds are being utilised to reduce or fully pay off the mortgage. If you need mortgage advice, please contact our partnered mortgage broker, The Residential Mortgage Hub.

Selling with or without planning permission

Selling land without proper consent can pose significant risks for developers. This is because it may lead to delays in obtaining approval and additional costs. Land with outline planning permission holds higher value, making it advisable to submit an application and seek guidance from professionals such as ourselves. Creating a comprehensive plan for the entire site is also beneficial.

In the event of a successful planning approval, it’s crucial to obtain an independent valuation of the development plot. This valuation should consider any specific legal requirements you wish to impose on the purchaser, in consultation with your lender if necessary.

Private purchasers might explore self-build mortgages, which could serve as an additional incentive for them to explore the opportunity.

Want to discuss your lands potential?

If you are considering selling your land, why not contact our expert team today to discuss this opportunity and how we can help you. We have the experience to provide you with advice on the best way forward.

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How much is my garden land worth?

Posted on by Sophie Winter

While there are various methods available for determining the value of your home, if you have received an offer to sell a portion of your garden or are considering purchasing land from your neighbour, you may be curious about how to accurately assess its worth. In this article, we will explore the factors that come into play when dealing with the acquisition of garden land. Plus we will explain two approaches to calculating its price. Additionally, we will examine the potential implications for homeowners, including their mortgages, particularly if the plot is adjacent to their property.

Land values by area

Gov.uk, provide average land values based on local authority areas, but it is essential to note that this data is intended solely for survey purposes and should not be relied upon for commercial transactions’ valuations. The figures are primarily used for assessing public policy related to agricultural and industrial land usage across different local authorities in England. The latest available data, as of writing, is from 2019, published in August 2020.

Moreover, the Gov.uk analysis emphasizes that land value is highly sensitive to specific variations in each plot. Therefore, whether you are selling or buying a plot of land, its true value depends on several critical factors:

  1. Location
  2. Land condition
  3. Size of the existing garden (if any)
  4. Value of adjacent properties
  5. Potential for car parking on the land
  6. Scarcity of land available for sale in the area
  7. Other local competition factors.

How are mortgages affected by buying or selling garden land?

For owner-occupiers who have a mortgage and wish to sell a portion of their property’s surrounding garden land, obtaining consent from their mortgage lender is the first step, and they might need to consider remortgaging. Releasing and discharging the plot of land may require a partial repayment of the initial amount borrowed (capital sum) to the bank, building society, or mortgage lender. Similarly, if you plan to expand the size of your property’s land by purchasing adjacent land, it’s crucial to inform your mortgage provider. Especially if you intend to include the purchase price in your existing mortgage.

Ways to value garden land

When it comes to valuing garden land, there are generally two main approaches. The first method is the comparable method. This involves examining sales of similar plots and adjusting the figure based on factors like scarcity, plot size, and location.

The second approach is the marriage value method. This is where the value of the land is calculated by assessing how much it would enhance the value of any property it merges with. Typically, a fraction of this sum, usually half, is considered as the land’s value. Additionally, it may be prudent to take into account any corresponding reduction in the value of the seller’s property.

Although these valuation concepts seem straightforward, in practice, they can be more complex. One of the challenges lies in finding enough reliable evidence of land sales. While data on house sales is well-reported, land sale agreements are often more private. They tend to involve negotiations between two individuals and without public advertising. As a result, the agreed-upon sums between buyers and sellers may be more influenced by individual affordability rather than broader market factors.

Additional factors

In addition to considering the previously mentioned points when valuing a plot of garden land, it is essential to assess its appeal to potential buyers. For instance, plots surrounded by neighbouring properties might not be as valuable as similarly sized land that benefits from a separate, unobstructed access route.

Furthermore, the circumstances and timelines of the sale could also influence the agreed-upon amount. Executors selling an asset may have different priorities compared to neighbouring landowners who were not actively looking to sell until approached. Thus, their willingness to negotiate could vary.

The potential for planning issues and changes in the intended land use, can also impact the selling price. Notably, garden land typically commands a higher value compared to some farmland, which might be subject to VAT.

As any surveyor or architect would confirm, land with existing planning permission generally fetches higher prices compared to terrain without such pre-approval.

Restrictive covenants on land

To facilitate the transfer of ownership, engaging a solicitor or conveyancer is necessary. During the preparation of the appropriate contract for buying or selling garden land, it is crucial to take into account any restrictive covenants that may apply. These covenants often aim to prevent noise nuisance from the plot or any inconvenience caused by potential future construction work.

In some instances, additional clauses might come into play. For example, overage provisions could entitle the land seller to receive a payment if the buyer secures planning permission for the land after the transfer, within a predetermined period.

Furthermore, depending on the location, the seller might wish to retain mineral and subsoil rights or include clauses concerning sporting rights and even airspace. These factors should be addressed and outlined in the contract to ensure a clear and comprehensive agreement.

In summary, there are numerous factors that influence garden land prices, making the valuation process complex and diverse. To ensure arriving at a fair and accurate price, seeking guidance from an experienced professional is often beneficial. Why not contact our expert team today to discuss this opportunity and how we can help you.

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Are new build homes more energy efficient?

Posted on by Sophie Winter

At CR Real Estate, we possess a deep passion for promoting new build properties, and it’s our desire for our clients to share this enthusiasm when they embark on purchasing a new home. In this blog we aim to delve into the numerous energy saving advantages associated with purchasing a newly constructed property.

New build energy savings

When considering the environmental efficiency of new homes versus second-hand ones, the primary distinguishing factor is the Energy Performance Certificate (EPC). In 2022, a noteworthy 85% of newly constructed homes received an exceptional EPC rating of A or B. This represents the highest level of efficiency. In contrast, out of the entire housing stock in the UK, only 41% of homes manage to achieve an EPC rating higher than C. This stark difference highlights the significant disparity in efficiency standards between new builds and the majority of second-hand homes.

Keeping you warmer

Enhanced insulation is a fundamental factor contributing to the improved Energy Performance Certificate (EPC) ratings of new homes compared to those built several decades ago. New homes are built with higher insulation standards, which effectively retain heat and reduce the frequency and duration of central heating usage. This results in lower carbon dioxide emissions and significant energy savings. In fact, recent research suggests that buyers of new homes can potentially save an average of over £3,000* annually on energy costs.

Energy and technology

In addition to insulation and triple glazing, EPC ratings also consider the energy generation methods employed in a home. New homes are increasingly achieving favourable EPC ratings by incorporating technologies such as solar panels and air source heat pumps into entire developments. Even more modest technologies, such as the inclusion of smart thermostats, contribute to energy conservation by facilitating easier control of energy usage. Government policy is further promoting the construction of energy-efficient homes through the 2025 Future Homes Standard, which mandates insulation standards and the installation of more efficient boilers in new homes.

Don’t overlook the letters

It may be tempting to overlook the seemingly arbitrary letters associated with homes, but the practical implications of energy ratings have become increasingly apparent in the past year. Energy Performance Certificate (EPC) ratings are determined by calculating the annual carbon dioxide emissions resulting from a home’s energy usage. To illustrate, consider two standard 3-bedroom homes of identical size: one with a D rating would emit approximately 4 tonnes of CO2 per year, while the home with a B rating emits less than half of that, just under 2 tonnes of CO2. Discovering the EPC rating and corresponding CO2 emissions of your home is a simple process. Visit the government website, enter your address, and you may realize the potential savings a new build home could offer.

Final thoughts

In the past year, energy bills have emerged as a significant concern for many individuals, making cost savings a highly desirable outcome. This leads us to the question: Why consider purchasing a new build home? The answer lies in the potential for substantial savings and the opportunity to make a positive impact on the environment. Opting for a new build home allows you to save money while actively contributing to planet conservation—a truly advantageous and mutually beneficial choice. Looking for a new build home? Contact our expert land and new homes team today to discuss your property requirements and how we can help you.

*Statistics correct at time of writing, CR Real Estate can not guarantee energy savings.

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What’s happening with minimum energy efficiency standards and EPC ratings?

Posted on by Sophie Winter

In 2020, the government revealed its intentions to raise the Minimum Energy Efficiency Standards (MEES) for the Private Rented Sector. The plans specified that private rented properties would be required to achieve an Energy Performance Certificate (EPC) rating of C or higher by 2025 for new tenancies, and by 2028 for existing tenancies.

Are landlords ready for changing Minimum Energy Efficiency Standards?

Recent data indicates a gradual enhancement in the energy efficiency of properties available for rent. As the number of properties with an EPC rating of C or higher has increased by 16% since January 2019.

Meanwhile, the number of rental properties with EPC ratings D to G dipped by 11%. These figures suggest that landlords are taking steps to either improve the energy efficiency of their properties; or becoming more selective with their investment choices.

A notable 61% of landlords say that they would not consider investing in a property with a rating below C. This shift in mindset demonstrates a change in priorities and an acknowledgement of tenants’ preference for higher-rated properties.

Will the new minimum standards be included in the Decent Homes Standard?

The A Decent Homes Standard in the private rented sector consultation outlined the suggested measures to implement the Decent Homes Standard in the private rented sector.

This standard is anticipated to be implemented in conjunction with the Renters (Reform) Bill. According to the consultation proposals, one of the criteria, criterion D, requires homes to offer “a reasonable degree of thermal comfort.”

In the House of Commons Committee report on Reforming the Private Rented Sector, a recommendation was made to incorporate the Minimum Energy Efficiency Standards (MEES) into criterion D of the Decent Homes Standard. This suggestion is regarded as a simple and modest simplification of the complex regulatory framework.

Currently, the Minimum Energy Efficiency Standard is not applicable to the social housing sector. Thus there is no necessity for it to be aligned within the Decent Homes Standard.

When will the increased standards be formalised?

The industry is still anticipating the outcome of the 2020 Energy Performance consultation. This will provide additional information regarding the requirements. Energy minister Andrew Bowie recently mentioned that the initial update for this year will merely consist of a summary of the responses received.

Earlier, the Telegraph reported that landlords would be granted until 2028 to comply with the updated energy efficiency requirements. However, there has been no official announcement to confirm this specific date.

What should landlords and agents be doing to prepare?

The present government guidelines for complying with the current MeeS regulations provide a list of recommended upgrades for landlords, along with their average costs. These upgrades encompass options such as internal or external wall insulation, draught proofing, solar panels, among others.

It is anticipated that the government will officially establish a cap of £10,000 on upgrade expenses. Allowing landlords to seek exemptions if the costs exceed this limit. Various sources of funding are available for these types of upgrades.

How can we help?

Contact our expert lettings team today to discuss your property and how we can help you with these changes.

This article is intended as a guide only and does not constitute legal advice. For more information, visit gov.uk.

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How to value my land

Posted on by Sophie Winter

If you already own a plot of land and would like to sell it on; you might be wondering how you value land. This guide will provide you with some useful tips when it comes to how land is typically valued. Although you may find it more beneficial to get in touch with us for a free appraisal of your land for development.

Land is valued depending on the market

Similarly to how properties are valued at different rates depending on where they are in the country; land is valued according to market value (as opposed to the actual land value).

Put simply, this means that a plot of land in Central London, will cost a lot more than a plot of land in the southwest countryside. This is an important thing to consider when you are valuing your land.

Land value calculations

There are multiple variables that go into assessing the value of land, but there’s a simple equation that most use.

Value of land = Price of new homes – cost of building the new homes

While the above is very formulaic, the actual value of the land can be extremely subjective depending on the land itself. Here are some important pointers and things to consider about valuing land:

Other factors that can affect the value of land

There are quite a few additional factors that can affect the value of your land. These include:

Connection to services

A plot of land that has a good connection to water, gas and electricity, will be much more favourable than a plot of land without these services. Valuers will consider both the cost of bringing these services to any dwellings built on the land. Along with the price people will be prepared to pay for the ease of having the services pre-connected.

Developments in the area

A land valuer will consider all of the prospective developments in the area. This will be to assess what may change before a dwelling is built and completed. For example, a new school opening nearby would increase the value of the property. But a block of flats built on neighbouring land would reduce the value of the property. An experienced valuer will have a clear idea of the council’s and neighbours’ plans for the future.

The site itself

It may seem obvious but a valuer will assess all parts of the land, including its topography. If it is located on a hill, then the value may reduce. This may be because properties built on the site will need extra work, and will most likely cost more.

Location to nearby services

Similarly to when buying property, factors such as local schools, links to public transport, and accessibility to amenities; are all considered when purchasing a plot of land. The value of land with these amenities close by can be significantly higher than exactly the same plot of land without them.

Size

The size of the land is one of the main factors that go into its valuation. Most think that the bigger the land, the higher the price. However, as listed above, there are many other factors to consider when valuing land. So much so that a smaller plot of land may be more valuable than a larger one elsewhere.

Legalities

There may be legal documents that mean a certain plot of land cannot be developed on in a specific way. Whilst these can often be overturned, it can be a lengthy and costly process.

Want a free valuation on your land?

As you can see, all of these factors consider both the value of the land itself; and how much it would cost to build upon the land. Although we’re firm believers that knowledge is invaluable; a full land valuation should be done by an expert. But having some insider knowledge about how to value land will help you feel reassured that you are getting a good price.

Get in touch with us today for a free assessment of your land for development.

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