Defining your requirements
People buy land for a multitude of reasons. A growing number see
it as an alternative investment to property - something that is certainly safer
in the medium to long-term than plunging one's finances into shares or the
volatility of the property market.
Empty nesters, having built up sufficient equity in a family
home that is perhaps now too big may look to acquire land for a bespoke
self-build project constructed to their own specifications and lifestyle needs.
Others buy land as a gift, maybe to assist their adult children realise the
dream of building their own first home - while developers will always be
interested in plots to redevelop into flats or houses for a quick profit.
Whatever purpose the land is needed for and whoever buys it, the
rule caveat emptor ('let the buyer beware') still applies. The key to
successful land acquisition is thorough research to mitigate the risks, and
asking yourself four important questions:
·
Purpose - why do you want to
buy land?
·
Use - is the land suitable
for your plans?
·
Cost - does your budget
cover the cost of the land, building, legal and survey costs, plus a
contingency for the unforeseen?
·
Resale. - will your project
realise a profit?
Budget
Exactly how much a plot of land will cost depends on several
factors, notwithstanding its location, size, proximity to transport links and
whether it benefits from any type of planning permission. Land sold with
planning permission is always more expensive than that without.
Land values are also relative to the general state of the
property market, so currently prices are more competitive than, say, a year
ago. That said, land experts Strutt & Parker say that rural Greenfield land
values actually doubled over 2006-08, bucking the trend of the general
downturn.
Finding the right plot
Land for sale is generally categorised as follows:
Brownfield - land that is or was occupied by a permanent structure that has
become vacant or derelict and has redevelopment potential.
Greenfield - undeveloped land, such as parks, forest and
countryside.
The first port of call for most people wanting to purchase land
is a specialist land agent or estate agent. However, agents are only one option
and it is always worth looking around and asking local developers if they have
any individual plots for sale. In today's property market where new home sales
are significantly weaker than last year, many smaller developers who have
over-committed themselves to projects and now unable to complete them are
looking to offload parcels of land at competitive prices, just to free up cash.
The internet also provides a rich source of land-buying opportunities.
Other land buying opportunities
·
Auctions - Land auctions are a
good way to find suitable plots but transactions are conducted on a 'sold as
seen' basis and therefore require a quick sale, leaving little time for
research.
·
Local authorities - Cash-strapped councils often have parcels of land they are
willing to sell.
·
Utility companies - Some utility organisations such as water, gas and electricity
companies have surplus land available to buy.
·
Private enquiries - Many private residential homes have large gardens with
building potential.
Location
The time-honoured mantra of location, location, location applies
equally to land acquisition as it does to property. Whether using the land for
a self-build project for personal use or redeveloping it for profit, one should
always have an eye on resale.
You are far more likely to achieve a higher resale value if the
location of the plot/development is convenient to transport links, shops and
amenities. If the land is for residential redevelopment in a rural location,
the property usually has to have exclusivity and uniqueness to realise its full
value potential.
Surveying the land
A proper survey of the land carried out by a qualified land
surveyor is essential and will highlight all boundaries, services, overhead
power lines, public or other rights of ways, flood risk etc. Land surveyors
also perform a vital function in carrying out feasibility studies, or
environmental impact assessments on potential sites to assess whether plans are
workable.
One key advantage of having land properly surveyed is that Title
Deeds are often outdated and boundaries have a habit of changing over the
years. A clear, unequivocal land survey will define the lay of the land for the
avoidance of any doubt, negating potentially costly neighbour disputes down the
line. When choosing a surveyor, look for those who are fully qualified and who
are ideally members of The Royal Institution for Chartered Surveyors (RICS).
Planning Permission
There are three basic scenarios when buying land insofar as
planning permission is concerned:
1.
The land has no
planning permission.
2.
It has outline
planning permission (OPP).
3.
It has detailed or
'full' planning permission (DPP) for a building for which a set of plans has
been submitted and approved.
Before proceeding to purchase land, it is vital to establish
with the local authority that they will ultimately allow you permission to
bring your plans to fruition. Otherwise there is no purpose in buying it in the
first place.
This said, acquiring land with planning permission already
granted doesn't necessarily guarantee that you will be able to build on it.
There may be restrictive covenants attached which preclude you. This is an area
your lawyer should carefully check.
Buying land with an existing property standing on it provides an
easier solution as it benefits from what is referred to as 'past precedent'. In
such situations, it is usually easier to get full planning permission if either
redeveloping an existing property or demolishing it and rebuilding a new one as
per the original style or footprint - in the case of the latter, only of course
if your plans are reasonable and in keeping with the neighbourhood.
Dealing with planning officials
In all situations, it is vital to establish a good relationship
with your local council's planning office. Planning officers are generally fair
people and if you can build a rapport with them and your proposals are not too
ostentatious, you are far more likely to receive a favourable response to any reasonable
planning request.
The best way to garner support from your planning office is to
involve them in the process from the outset, holding early site meetings to
discuss your intentions on an informal basis and without cost to yourself.
Planning officers usually offer constructive advice and suggestions, which will
assist you in drawing up detailed plans that are far more likely to get
approved at the first hurdle.
The legal process
The legal procedure for buying land is generally a lot less
complicated than buying and selling property, and should always be conducted by
a qualified solicitor specialising in land transactions. As land is a valuable
commodity often quickly snapped up by other buyers, you should be looking for a
lawyer who is energetic and enthusiastic to your cause. Use the lawyer's
knowledge and expertise to answer important questions relating to issues such
as permitted use, boundaries, footpath or other public access/rights over the
land issues, to satisfy yourself that the purchase is a sound one.
Availing your lawyer at an early stage with as much detail about
the plot as possible is crucial. This could be in the form of site photographs
and your intended plans for its development. You can establish whether an
aerial photo of the plot exists by visiting the site www1.getmapping.com.
The lawyer's function will essentially be to check that the land
has 'clear title' - i.e. is legitimately for sale - and to initiate searches to
see if there is, or has been anything which could affect the stability of the
land such as previous mining, flooding etc. They will also check the legal
documentation relating to the size, scale and dimensions of the site to ensure
that you are buying what is being sold.
Once your lawyer is satisfied that all is in order and you are
sure that you have, or will get the necessary approval for your intended use,
then it is usually safe to proceed to purchase. Obviously, if buying land at
auction, one only has a limited amount of time to conduct the research and
legal work and therefore buying land this way carries significantly more risk.
Further information
Further information about both land and property can be found on
the Land Registry website. For £2 you can search the detailed history and
ownership of property in
