Selling land for development?
Published by Property Saviour
The UK's No.1 Fast House Sale Company
July 25, 2015 - Read time: 3 minutes
Selling land for development is a risky game. You have to be prepared to sell your land. Developers can be vultures.
Our tips for selling land for development will be a useful guide for you when looking to sell your land:
Your agenda may not be a priority for your developer – this will affect your negotiations!
You will want as much as you possible can get. But developers will play a long game. The land that you are looking to sell will form part of a small scheme within developers’ land bank. If you sign the wrong deal, you will find that developer may not apply for planning permission for some time. This is because the developer will have other local sites that are much easier to gain planning permission for.
We at Property Saviour are specialist land buyers looking to buy and apply for parcels of land across England and Wales. We buy with cash and often can complete quickly. We will also apply for planning permission quickly – and keep you posted throughout the process! To sell your plot of land click here.
Be prepared for price negotiations – do not let the developer dictate terms!
Following planning permision, the developer would want to buy your land. They will issue you with a “Price Notice”. The final price, a developer would offer you will depends on:
- The actual size of the site, gross and net size. The “net” size is the bit where developer is allowed to build houses and will often be much smaller than “gross” size. The developer will tell you that this area can nt be developed because it is required for access to site or community facilities i.e. a childrens’ play area.
- Up to 50% of land may be deemed as “undevelopable” so the developer would want 50% off the agreed price!
- Watch out for the “headline price”. This is the gross value figure per acre for the land once planning permission has been granted in your locality. It is very rare for a developer to offer you 100% of the land headline price. Developers general make deductions from the headline price to cover for their costs such as:
- ‘Extraordinary’ costs include site inhabited by rare animals such as newts. Developer may be required to provide a new habitat for newts and may even require ‘newt crossings’ to encourage them to move into their new home.
- Finally they will take into consideration type of development that already has planning consent granted. Value of land intended for sizeable plots for larger detached properties will be less than for a site with larger number of smaller houses, more easier to market and quicker to sell.
Is selling land for development right for YOU?
Selling land for development purposes can be rewarding. However, be careful when dealing with developers. We are looking for plots of land to develop and if you are looking for a fair price, we may just be able to offer you that. We will not offer you a “headline price” and then make deductions or reduce the price by 50% once planning permission has been granted.
We have seen many landowners being treated unfairly by the developers. Do not be one of them. Call us now on 0113 320 6700 or make an enquiry to see how we can help you sell your land.