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Could you benefits from selling land?

Published: 01 February 2023
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Author: Carl Shave - CEO and co-founder
Last updated: 26May2024

Could you benefits from selling land?

As a landowner, it is worth researching and exploring the potential of selling a portion of your land for residential development. It is beneficial to look for an area on the site that could have a separate access point, as opposed to having a shared access point.

This will help to maintain the integrity of the other parts of the land that are not being developed. It is important to consider the value of the land, the expenses and the potential profit that could be made from development of the land. It’s also essential to be aware of any local guidelines or regulations that may be in place for the development of residential areas.

Are you thinking of selling a piece of your land?

Selling land can be complicated. However, demand for housing development land is high, so councils and developers are always seeking residential plots.

Selling land can be a complex process, especially if you are unfamiliar with the local market and regulations. However, due to the high demand for housing development land, councils and developers are constantly on the lookout for potential residential plots.

This makes now a great time to consider selling your land, as you may be able to get a good price for it. Before you start the process, it’s important to understand the local regulations and market conditions and to check with a qualified professional such as an estate agent or solicitor. They can help you understand the process and guide you through it to ensure you get the best deal for your land.

How much is land worth to developers?

Values depend on location as well as the scale of any property development, and its impact on the existing property.

Considerations when selling land

Speak to your neighbours

Speaking to your neighbours is sensible as they will need to support future planning applications. In some cases, they may even be interested in also selling part of their own land. This could potentially create larger property development sites.

Current mortgages

Before proceeding, obtain written consent from the mortgage lender. Keep them updated throughout the process, especially if extra money is to be used to reduce or pay off the mortgage.

Selling with or without planning permission

Selling land without permission can be risky for developers. This is due to the potential for delays in getting consent and other costs. Land with outline planning permission is more valuable, so it’s wise to create an application and consult a professional for advice. Outlining a plan for the whole site is also helpful.

Identify the area for sale in a separate colour. This can provide clarity for the type and size of new build. Bear in mind that all new-build homes and extensions have to comply with net-zero carbon emissions from 2025.

If planning is successful, obtain an independent valuation of the development plot. This should take into consideration any legal requirements you wish to impose on the purchaser (in consultation with your lender, if appropriate).

Self-build mortgages may also be available for private purchasers, which could be an added attraction for them to investigate.

Moving & selling land

Should you decide to move, secure separate valuations on both your existing property in its entirety and without the potential development site. This is to ensure you maximise the financial benefits. Remember that legal and agents’ fees for disposal will apply on each sale negotiated.

If you are considering selling your land, Just Mortgage Brokers have the experience to provide preliminary advice on the best way forward.