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The aim of the Bright Property website is for the purchaser and vendor to deal directly with each other, so we have produced this Buying Land guide to help you.
STEP 1 – CONSIDERATIONS
What are you looking for?
Agricultural
Grazing
Recreational
Pasture
Pony Paddock
Woodland
Self Build
Investment
Development
What can you afford?
Before you start looking for land it is a good idea to work out how much you can afford to
spend. This may be dependant on the value of your current property, the amount that you can
put down for a deposit and the mortgage you will need. You will also need to consider all the
associated costs of purchasing land such as:
Mortgage costs The administration fee for setting up the mortgage and the mortgage valuation. Not all mortgagors charge for these.
http://www.mortgagesforbusiness.co.uk/Survey. It is worth considering having a survey so that you are fully aware of any defects prior to purchasing as well as confirming the following:
- The actual size of the land. (This may vary from the agent’s details).
- Contamination
- Any unusual problems that might otherwise be overlooked.
- Ask what type of survey the surveyor recommends, and why.
- Make sure the survey covers all your areas of concern. The surveyor cannot be not held
responsible for things he or she does not agree to check.
- Check the cost and timing of any work that needs to be carried out.
- Check that the surveyor has professional indemnity insurance.
- Get these points agreed in writing.
To find a surveyor go to http://www.ricsfirms.com/vw/search/location.aspx
Legal/Conveyancing Fees The solicitor or conveyancer will check all aspects of the legal title
to the land to ensure there is nothing onerous which may affect subsequent sales. It is important to ensure
that you are confident with your chosen legal representative before appointing them. You can find details of
solicitors or conveyancers in your area by going to the Law Society Website.
http://www.lawsociety.org.uk/choosingandusing/findasolicitor.lawStamp Duty The Land Tax on property i.e., houses, flats, other buildings and land. If the purchase price is
£125,000 or less (effective 23 March 2006), you don't pay any Stamp Duty Land Tax at all. If it's more than
£125,000, you pay between one and four per cent of the whole purchase price, on a sliding scale.
http://www.hmrc.gov.uk/manuals/sdltmanual/SDLTM00050.htmLand Registry Fee The Land Registry is a government department which looks after the registers of all
registered properties in England and Wales. It charges a fee for transferring the register to the new owner.
This fee is charged according to property price.
Price (£) |
Fee (£) |
| up to 40,000 |
40 |
| 40,001 – 70,000 |
60 |
| 70,001 – 100,000 |
100 |
| 100,001 – 200,000 |
200 |
| 200,001 – 500,000 |
300 |
| 500,001 – 1,000,000 |
500 |
| 1,000,001 and over |
800 |
- Local Authority Search Fees.
- Other Search Fees and Disbursements.
- Land search expenses- traveling, newspapers etc
- Contingency fund.
- Business Rates. – (dependant on the use of the land, i.e. used for business purposes).
- VAT - in some cases, VAT may be payable on the purchase price.
STEP 2 - CHOOSING THE LAND
It is worth drawing up a list of requirements that you want from the land. Bear in mind finding the perfect plot is not always possible, and compromises may need to be made.
Points to Consider:
- Size and shape - it is what you envisaged and suitable for your use.
- What planning consent/use does it have? Is it still valid?
- Does it have an agricultural holding number?
- Infrastructure – roads, rail and public transport links.
- Development – is there any major development taking place in the areas, this maybe a
positive factor in the long term but an inconvenience in the short term.
- Is the price of the land comparative to local land prices.
- Environmental Considerations – e.g. development on a flood plane The environmental agency
website can provide information about this www.environment-agency.gov.uk.
- Pollution/Contamination – previous use, vicinity to development and the surrounding area.
- Waste and Water systems.
- Site gradient – is the site on a slope, is it suitable for building on or accessing.
- Soil Type – what is it condition is it suitable for your use i.e. foundations, growing crops.
- What services are available – where are the connections.
Where to look:
- Register with Bright Property under the Wanted Ads.
- Bright Property website,
Viewings
- Where possible try and arrange viewings as soon as the property comes on the market.
- Take the property detail along with you and a contact number if you are running late.
- Make notes – you may not remember all aspects of the land if you are viewing many plots. Taking photographs can be a good idea, but ask the owner’s permission beforehand.
- View the land a number of times if you need to. At different times of the day, weekdays,
weekends etc so that you get a feel for it.
- Look round the area.
- If you are going on your own make sure somebody knows where you are.
STEP 3 -MAKING AN OFFER
Points to help with negotiation
- How long has the land been on the market?
- Why is it being sold?
- How quickly does the vendor want to sell it?
In most cases there is an element of negotiation when purchasing land. It may be in respect
of the price, soil condition or planning consent. If you are purchasing land advertised on
Bright Property website you will be making the offer direct to the owner. Offers can be made
either verbally or in writing (Subject to Contract) and can be conditional e.g. pending :
- The results of a survey.
- Planning permission or other approvals.
- Confirmation that any previous occupant has moved out (‘vacant possession’).
- Contract conditions and land searches.
- Finance being arranged.
Upon agreement of the price it is worth confirming the details of the sale in writing so that
both parties are clear what has been agreed. The property should then be taken off the market
and "sold" put on the board and "under offer" on the advert.
STEP 4 - LEGAL WORK, SURVEYS AND VALUATION.
Once the offer is accepted you are then need to advise or appoint your solicitor and surveyor
if you are using one. Obtain quotations in writing detailing the work they will undertake and
the costs involved. If you are having a mortgage, generally they will instruct a surveyor to
carryout the valuation. Though you may need to arrange convenient times with the vendor for
surveys and valuations to be done.
The solicitor will undertake what is known as due diligence i.e. establishing the following:-
- Who owns the land and do they have the right to sell the land to you?
- Are there any restrictions on the use or alterations to the land?
- Are there any current or future planning decisions which may affect your land?
- Are there any guarantees available with the land
- Are there any problems with the premises? For example: Does the land have all mains services? Boundary or Neighbour disputes. Connections to the mains services
- What fixtures and fittings are included in the sale? Is the equipment owned by the vendor.
- Are their any warranties with the equipment included?
STEP 5 - THE LEGAL PROCESS
- Contract
The contract will be drawn up by the seller’s solicitor/conveynacer which sets out the main terms of the proposed agreement, including your names and the agreed price. This will then be sent to the buyer’s solicitor.
- Searches
At this stage searches will be carried out. If you need assistance moving, now is the time to get quotes from removal companies or enquire about hiring transport.
- Exchange
One the contract is agreed and all searches and surveys have been undertaken, the contracts can be exchanged and a date agreed for exchange. At this point neither party can withdraw easily without the possibility of incurring financial penalties.
- Completion
At completion, the Title Deed and transfer document will be transferred to the solicitor in exchange for the money for the land.
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