In order for Landowners to maximise the value of their land they need to be more savvy when negotiating with potential purchasers or their agents, who will be hell bent on ensuring that the gross price paid is the minimum possible. In order for landowners to make their land value attractive to potential purchasers they need to ensure their land is ‘oven ready’.
By oven ready we mean that any title issues which could affect the sale are sorted out prior to their land going to market and in some instances landowners may want to apply for outline/detailed planning permission themselves. However, this may be cost prohibitive as any planning permission obtained may not be suitable for the developer and any costs could be time wasted as the developer may need to re-apply themselves for their preferred scheme.
A developer’s acquisition of a potential development site depends, amongst other things, on whether or not it is financially viable to them, irrespective of the landowners’ own aspirations and the considerations for this will be, for example, Local Authority requirements, under any required planning agreement to be entered into as a pre-requisite of getting the planning permission which the developer will undoubtedly want knocking off the land price as their product price will not, in most cases, stand these additional costs.
The National Planning Policy Framework (NPPF) requires local planning authorities to identify and keep up-to-date a deliverable five year housing land supply. We believe that many local authorities are failing to keep up with demand and that major action is required in order to deliver the number of homes required for the growing population. Add to this, the Government’s targets for the provision of new homes.
If you own some land and are thinking about selling there are a number of matters you should consider. Location is always the key element in any development. Has the land already been developed (Brownfield) or is it land that could be developed (Greenfield). You will then need to consult your local authorities “Local Plan”, most of them have these available on their websites and they indicate what the council has designated the land for, as well as identifying land for future development. If your land falls within the designated area for housing, it is likely to appeal to housebuilders, if it isn’t steps can be taken to have its merits considered and adopted into the plan.
You may be aware of land owned adjacent to your site and be able to combine efforts with other land owners to enhance the attractiveness of the site (to developers). This type of transaction, known as site assembly, requires specialist skills as it creates many complexities in title ownership, boundaries and land valuations and the different personalities of the landowners who most likely will have different aspirations that have to be overcome before such a site can go on the market.
Our development team are pro-active in the marketplace and work with Land Agents and Landowners, including, farmers, businesses and private individuals to assist in matching their land asset to our bank of developers. We work with developers interested in building one-off luxury homes and smaller scale developments of 4-8 units to larger developments with hundreds of plots. With over 20 years experience acting for developers on land acquisitions we are well placed to advise landowners of potential issues when dealing with developers and their agents.
Whatever aspirations you or your proposed purchasers have for your land we can help you make an informed decision as to which route to take, and guide you through the process ensuring a thorough and efficient outcome.