Guidelines for selling or buying residential land

There are currently more aspects related to residential land, arguably more so than any other property sector like terrace factory. Obtaining the disposal or acquisition of a potential redevelopment chance right is a key concern for any vendor/purchaser.
All prices related to securing a successful deal should be under constant analysis to keep timescales and expenditure to a minimum, whilst guaranteeing both a competitive offer and best value is achieved.

Make sure skilled agency advice is sought at the outset
Take correct advice from a specialist property agent to make sure we get the best possible deal from the outset. The residential land market is a specialist area with several developers using in-house land buying team who deal in nothing but the subject matter. Make sure the preferred agent has the expertise and most significantly experience with a proven track record as well as wonderful industry contacts.
Employ the services of a solicitor at an early stage
As with the property agent it is equally vital to appoint the correct solicitor at an early stage. Again specialist and track record are the key elements in appointing the proper lawyer. It is important to verify the tenure details of a site as well as identifying any authorized covenants, rights of way or third party interests, like a communications mast which will impact on redevelopment potential.
Know the likely realization worth
Make sure a full elaborated financial appraisal is undertaken, precisely identifying the likely income of the scheme and property could accommodate, total prices and level of profit expected by the market. All too often comparable land values are relied upon.
Ensure the proposed scheme maximizes potential and worth
Due to immediate location and ever changing demands, several opportunities have inappropriate planning consents in regard to number, layout, density and kind of unit accommodation. It is vital; therefore, that the proper mix of accommodation is proposed to make sure best value is achieved.
Ensure planning consents are implementable
Planning decision notices, conditions and agreements should be completely reviewed to confirm they are indeed implementable from both a physical and a funding angle. Expert planning consultancy advice is often needed and is crucial in most cases.
Safeguard against potential market changes
To provide an additional competitive offer and to safeguard the vendor against any immediate or medium term development in market conditions, or indeed future whole or part disposal, an ‘overage’ provision could be enforced t-space as a part of the disposal contract.
All technical information should be assignable to the purchaser
All too often, transactions are delayed at the last minute owing to technical information not being assignable to the purchaser. It is good practice to obtain reliance letters from all consultants concerned at an early stage.
Collate and produce a comprehensive information pack
In order that all offers are submitted/received on the same basis a comprehensive and full Information Pack must be made available to all parties and form part of the bidding process.