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An Owner's Guide to Subdividing Land for House Development

As a landowner, subdividing land can be the most profitable and fulfilling means to maximise your resources, whether you have a small or large plot of land available for development. However, it can come with a few hurdles you need to overcome before you can achieve success, especially when you think about the steep competition in the real estate market.


Whether this is your first time doing this or have a few completed projects in your record, land subdivision and its fine details should always be on the top of your mind and revisited when necessary. To ensure you have a solid foundation on this, read this guide and contextualise it to your current situation.


What Are the Benefits of Subdividing My Land for Home Development?


While each land, landowner, and development process is different across the board, you can generally enjoy the following benefits through a proper subdividing process:


Bolsters your land’s total value without having to risk costs for property development


Since you are essentially giving permission for residential development, you don’t have to worry about the implied costs associated with construction, real estate marketing, and other costs. You can simply let an experienced residential developer do so, and they will either give you a cut of the shared profits or even purchase the whole plot. It all boils down to what you think is best for you.


Increases your land asset’s marketability


Even if you don’t sell your land assets right away, you can get them developed little by little to gain attention from tenants, property developers, commercial real estate investors, and more. It is because starting with land subdividing for residential properties creates demand for products and services, and your land’s accessibility to those sustain robust economic growth. As a result, you end up with an established neighbourhood amenable for residence.


What Are the Challenges That I May Experience When Undergoing Land Subdivision?


Before reaping the benefits of selling your land through subdividing, you have to pay attention to the following factors:


Deed restrictions for professional development: Your first order of business before opting for subdividing should always be to check your deed. Even if you have full ownership of the land, some terms and conditions may restrict you from developing certain kinds of properties. Worse, you may be sued by your land developer for breach of contract once they prove that the land cannot be built upon for particular projects due to your lack of oversight.


Homeowners violating local restrictions: Once residential properties are built, they need to be monitored to ensure that they don’t violate the Covenants, Conditions and Restrictions (CCRs), which is a standard for many real estate projects. Land subdivisions may also need to form a consensus if their terms and conditions clash with one another. If you are not well-versed in legalities and negotiations, this can be a challenge and even lead to paying penalties.


Conclusion


Selling land for development comes with its risks, but you can significantly reduce them if you take the time to learn more about subdividing. With the information mentioned above, you have a frame of reference to guide your next steps. However, if you feel you still lack the insights and resources necessary to take out this massive undertaking, consider finding experienced residential land developers like us to ensure peace of mind.


Are you selling your land for development in the UK, particularly in Bournemouth, Dorset, and Hampshire? Consult with us at Magna Property Developments. We specialise in land acquisition, planning, and residential development, allowing you to get the most out of your land assets. Call us today at 01202 022193 or 078687 03356.


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