01825 749721

Top Tips for Selling Land for Development

Guide for Landowners

House building is a priority. There has been a huge demand for new builds in prime locations.

But in many cases, it is obvious to see that the demand is higher than the supply.

This is because there is not enough suitable land in desirable areas to meet these needs.

The land is very valuable – and in particular, farmland. Especially when that same farmland has residential planning permission.

So, it comes as no surprise that numerous landowners are considering selling their farmland for development.

That’s why we’ve collected the top tips that land proprietors should consider when putting their land up for sale…

1. Seek out professional and experienced consultants

The most important point to be aware of is that you should not arrange a deal yourself to avoid any fees.

Professional and experienced advisors like an accountant and a solicitor are essential and should be consulted before any negotiations take place.

What you might not know is that real estate and land developers usually have very strict criteria when it comes to finding land they would like to buy.

So, it is important that you get the right advice from the very beginning to make sure that the way in which you sell your land looks attractive and lucrative for developers.

2. Ask yourself: Do you really want to sell your land?

Yes, farmland can be very valuable. But the best way to maximise your own profits is to develop the land yourself.

But more often than not, we see many first-time developers short of money who cannot develop their own land and many of which, have been rejected by high-street banks and mainstream sellers.

Here, at Hunter Finance we are a private, independent lender who takes chances on first-time and inexperienced property developers who own land and help them develop it. Click here to read how one of our clients became a millionaire in under a year.

It’s important to consider all your options before you sell your land and make sure that you don’t miss out on any further opportunities.

3. Obtaining consent for planning

Remember we said that land with planning permission is even more valuable? Well, if you do not have any planning consent here’s how to solve the problem.

Before any development begins, planning consent will be needed. However, who needs to acquire it is a common question amongst landowners.

Carrying out the planning process can help you achieve big payoffs, however, it does come with risks.

And as it is a gamble, we do recommend that you get in touch with a planning officer from your local authority, or even speak to a surveyor.

Hunter Finance has a team of experienced surveyors who will visit your land very quickly and run you through everything you need to know and help you develop your land.

By speaking to either of these agents, you will gain a better idea if your consent application will be successful or not.


4. Promotion Agreements

Designing-a-home-for-kentBelieve it or not, these agreements are beginning to grow very popular amongst developers rather than the more traditional options.

So, they are something you need to be clued up about.

Promotional Agreements is when promoters (specialists, consultants, developers) at their own cost, apply for planning permission.

Once that planning permission has been approved, the landowner will then have to sell their land and the promoter will walk away with the fee obtained from the proceeds.

It is highly recommended that you seek professional advice in these circumstances, as landowners should undergo effective negotiations to protect their own interests.

5. Overage

To simply put it, the overage is when the landowner obtains the right to receive ongoing future payments once the land has been sold.

This process can be more popularly identified as a clawback.

The right can often be prompted by planning consent being obtained for the development.

Ask yourself:

  • How long should the overage agreement last for?
  • What are the obligations and responsibilities of both parties?
  • How will overage payments be calculated?
  • How overage payments should be obtained and secured?

6. Consider the environmental impact

When it comes to selling your land, making it more appealing to developers should be an ongoing effort.

Make sure the land is not contaminated – this can be identified if the land has been used for contaminative purposes in the past.

Problems like flooding and drainage issues are also considered environmental issues.

This will be very costly for the developer to fix. So, make sure you have any surveys or reports to hand so that the value of the land is not affected.

If you have any questions about either developing your land or need advice when it comes to selling your land to developers get in touch with us on 01825 749721 or use the button below…