There’s no denying that there is so much demand for real estate in various prime locations in the UK. Unfortunately, the demand for these is much higher than the supply because lots of land pieces are underutilised and undeveloped. But with rural developments and city expansions, many property developers are targeting prospective locations for land development. For this reason, many landowners are considering selling their lots to these developers to make a good profit.
If you’re looking to sell your land for development, here’s our guide on how to proceed:
1. Know your main reason for selling the land
The chances are that you have farmland that is such a valuable resource. However, if it has remained underutilised or you’re still using this farm for less profit, it’s a good idea to sell this land and have it developed to gain and maximise your profit.
The idea above is particularly ideal if you have a high land value and notice your land location is targeted for progress and development. But before you take the plunge, know your primary reason for selling your land and determine if it will be the best choice!
2. Ask for help from professional consultants
If you aren’t an expert in real estate, particularly when it comes to land sale and acquisition, you may need to consult with professional experts. In this case, you should get in touch with an experienced advisor, such as a solicitor or an accountant, who can assist you with your land-selling journey and help you gain some profit.
Here at Magna Property Developments, we endeavour to develop modern homes across Dorset and Hampshire. Our land acquisition team is dedicated and committed to helping you in selling your land for development.
3. Seek planning permission for your land
For the uninitiated, planning permission refers to seeking consent for the construction and development of land from the proper authority, which is subject to approval or denial. This means that you must have planning consent once you sell your lot and before any development project begins.
It’s highly recommended that you speak with a planning officer in your local authority or even a surveyor. However, one route to take is to have a Promotional Agreement, an agreement where your promoter (such as specialist, consultant, or developer) will apply for planning permission at their own cost.
4. Be highly critical of the overage
An overage refers to how the landowner obtains the right to receive future payments once the land is sold. As the landowner looking to sell your lot, this aspect is the most crucial part of the process as this is how you’re going to earn in the future.
For this reason, you have to be highly critical of the terms and agreements involved in the overage. Be sure to consider the agreement term, the obligations and responsibilities of both parties, the overage calculations, and the payment method.
Selling your piece of land for progress and development is such an excellent investment. However, be sure to consider the practical steps discussed above, so you’ll be steered in the right direction. In the end, not only will you get a good profit out of your land for sale, but you’ll also help contribute to the growth and development of the community!
As a property developer, we offer land acquisition, planning, residential development, house renovation, house extension, internal alteration, and loft and garage conversion services. If you’re selling land for development in the UK, get a free land value assessment or schedule a callback with us today!