Helping Landowners Sell Development Land
Landowners have two options when selling development property, either before planning permission is granted, with an uplift clause, or selling it once planning permission is granted.
To maximise land prices, selling land with detailed planning permission obtains the best price. However many Landowners cannot afford the costs or risks involved in obtaining planning permission so they will sell it to an investor or builder who can afford the planning costs. In such situations the land is sold for a market price but the vendor will receive an uplift in the future if planning permission is granted. The uplift tends to decrease the higher the purchase price.
The alternative is the Landowner sells the land on a Conditional Contract. This is where the Landowner typically agrees to sell a small development site to a Developer for a fixed price. But the Landowner and the Developer agree that the fixed price will be paid in full within so many days after obtaining planning permission. Typically such agreements are for less than 2 to 3 years in length. The benefit for the Landowner is they know the price the Developer is going to pay as it is fixed in the Conditional Contract. However the Developer can decide not to complete the purchase and the Landowner then has the benefit of planning permission at no cost. In the event that the conditions cannot be satisfied within the timeframe agreed in the contract, the parties are free to walk away.
With WebbPaton’s office strategically placed on the M4 corridor near Junction 16 on the outskirts of Swindon we are well placed to cover the villages and market towns of north Wiltshire, Oxfordshire, Gloucestershire and Berkshire. WebbPaton keep an up to date list of developers and investors looking for both short and long term strategic land and land with full planning consent.
WebbPaton keep up to date with both the National and Local Planning Policies affecting Swindon Borough Council, Wiltshire, Vale of White Horse District Council, West Berkshire District Council, and Cotswold District Council. If you want to invest in the freehold of strategic land or development land in these areas or any of the villages please call our development team to discuss.
WebbPaton also carry out RICS Red Book Valuations to ascertain the value of development land on behalf of our clients.