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Tag: Garden

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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