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Tag: Garden Land

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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