A Guide to Selling Land: Frequently Asked Questions
Due to the UK’s ongoing housing crisis, land demand is currently high. Councils and developers are actively looking for essential developments, which may put you in a lucrative position to take advantage of the commercial opportunities.
Our land development experts have put together some of the most frequently asked questions when it comes to selling land, to help you get started on your journey.
How much is my land worth?
With so many factors affecting the value of a piece of land, it can be difficult to say exactly. However, the single most important of these is whether or not the land has planning permission. Land with planning permission is worth approximately 8x the value of land without.
If the land is residential, you could estimate the land being worth about 1/3 to 1/2 of your property value. Other important factors are location, size, and future development potential. To understand exactly how valuable your land is, ask yourself the following questions:
- What can be built on the land? This will depend on the size, shape, slope and location.
- How much will the land be worth once the development is complete?
- What will the build cost? Including demolition costs, construction materials and labour, skilled trades and other overheads.
- What is the profit margin?
The value of any land is the amount the buyer is willing to pay, and the financial return that the buyer can achieve themselves.
How do I sell my land?
There is a range of places where you can advertise your land for sale, including online directories. You may also want to research local and national development companies. For example, Bruckland Developments is looking to acquire land in southeast England. Alternatively, there are local land agents or estate agents that will be able to help you get started in the process.
What is involved in selling land?
Once you have found a buyer, you should use your own independent solicitor to act on your behalf. This will ensure the sale is carried out with the correct legal documentation and that both buyer and seller fully understand all aspects of the agreement. Your solicitor will draw up a contract of sale and deliver it to the buyer.
How much do developers pay for land in the UK?
The published figures for land in the United Kingdom can be found on the Government website, but many suggest they are over-exaggerated and not a true reflection of reality.
In the prime parts of southeast England, residential land with planning permission can be worth upwards of £1 million, and close to £2 million if located in a valuable area or close to London. In the midlands, land prices can vary upwards of £350,000 per acre.
How long will it take to sell my land?
The amount of time it will take to sell your land largely depends on the planning process. It takes at least 13 weeks to decide on each major planning application and usually a lot longer (upwards of 6 months) for larger sites. Overall, you should expect the journey from absolute start to finish to take 12-18 months.
Bruckland Developments is looking to acquire land in the southeast of England. If you want to sell your land, contact us and we will help you along the way.