If you are considering selling land with development potential, there are three main options to choose from. Each route comes with its own set of pros and cons, and it is important to weigh them carefully before making a decision:
1. Selling land without planning permission
One way to sell land is without planning permission. While this can be a quick and easy option, it may not fetch the highest price for your land. On the other hand, you won’t need to spend money on obtaining planning permission, a process that can be time-consuming and expensive. There will however be commission to pay to an estate agent or land agent if you sell through one, and legal fees to deduct from the sale proceeds.
Developers usually prefer to buy land with planning permission to avoid the risks of not obtaining it. However, at PNT Property we have bought sites without planning permission where there is a good chance of the land being granted planning for instance if there are clear ‘permitted development’ (PD) rights that can benefit an existing building.
2. Sell land “subject to planning”
Another option is to sell the land “subject to planning,” meaning that the buyer will be responsible for securing planning permission. This generally results in a higher sales price, and it transfers the risk and cost of obtaining planning to the buyer. PNT Property specialises in this type of arrangement whereby we obtain planning as part of the sale process. This type of arrangement tends to work best for sellers who are not time pressured so are happy for the developer to spend the time optimising the planning permission in return for a better price for their land.
3. Selling land with planning permission
Selling land with planning permission is likely to fetch the highest price, but will also requires the time, effort and expense involved in obtaining planning permission. It also takes considerable experience to optimise a scheme, and money can be left on the table if, for instance an additional dwelling can be fitted into a scheme or an additional storey can be accommodated, increasing GDV (gross development value). PNT Property have bought and developed sites with planning but will generally look to add value by optimising the scheme further post or during purchase.
Finding the right buyer
When selling land, there are several ways to find buyers, including selling at auction, working with an estate agent, or approaching property developers directly. Each route has it’s pros and cons and choosing the right one comes down to your motivation and circumstances.
If you have land that you wish to sell and want to ensure you receive the best offer for your land , don’t hesitate to contact us at PNT Property. We specialize in knowing our local market and have extensive experience in appraising land , getting planning and developing sites, and will be happy to discuss in confidence, without obligation.
