Can I sell off part of my land?
As a land owner, whether you have a property with a bit of spare land, or you own acres and acres of the stuff that you’re just not using, you may want to consider selling-off some of the land to your neighbour, or indeed to anyone who wants to buy, via estate agents: however you sell the land, what sort of issues do you need to consider?
Firstly, you need to think about whether or not you should sell with or without planning permission, whether you could team-up with your neighbours to make the plot of land bigger and more desirable, what could happen to the value of the remainder of your property, and whether you’re getting a good price for the land, based on the location and the size.
Why would you only sell part of the land?
Well, as housing is in high demand across the UK, developers are always looking for good plots to develop on. If you have too much garden to look after or more space than you need, you may wish to bring in some cash to invest the money in something more worthwhile, or to pay a chunk of your mortgage off.
You need to think about what it would be like to live next door to a building site, and whether the value of your property could be affected by the development.
Should I get planning permission before I sell?
One benefit of getting planning permission on the land before you sell it, is that you could control what is built on the land once it’s sold. As another major benefit, you could also increase the value of the land, as the buyer will understand the investment they are getting.
However, one negative is that there could be a cost involved with obtaining planning permission in the first place. If you decide not to sell with planning permission, you may want to consider instructing your team of property solicitors to include an uplift clause: i.e. if your buyer gets planning permission on the land once you’ve sold it, they pay you a percentage of the increased value back within so long.
Once you’ve considered the above, the first person you should contact, once you agreed a sale, is your local property solicitor: for example, in Longridge, Lancaster or Garstang, you could speak to our team of property solicitors.
Our team will need to know who your buyer is. A lot of people would argue that one of the biggest risks that you face when you find a buyer to purchase a part of your land, is knowing who your buyer is. A lot of sellers don’t realise that land buyers are quite different to property or home buyers. Generally, with home buyers, they will be looking at property from the prospective of whether they would see themselves living there, or if they could see potential in the property. With land buyers, in the majority of cases, they will be looking for development opportunities. This may seem brilliant: they may pay more money! However, if your property is attached to the piece of land that you’re selling, you may wish to consider the impact this could have on your house.
The best thing to do, before even accepting an offer on your land, or marketing the land for sale, would be to contact our team of property solicitors for some advice and guidance on the best way forward. Our team can be contacted at your local office, or by email to firstname.lastname@example.org.