Land is a precious and finite commodity, particularly here in the UK. As such, there is typically strong need for development property, even in the early stages of recovery after the recession and then coronavirus. Whether for residential or commercial use, this land is in increasingly short supply – and thus greater demand.
So, if there is a growing shortage of suitable development land, why would you consider the option to sell quickly to a cash buyer? And how does it work?
Sell Property Quickly UK
Developers purchase land for residential or commercial applications, whether it’s new builds or for investment purposes. It can be an effective way to get on the property ladder. Greenfield land is property that includes fields, parks and forests. While the most popular on which to build, it is also the most difficult in terms of obtaining planning permissions. Brownfield land, or urban land, has been previously developed, and it is easier to secure permission.
Now, when it comes to selling development land, there are several other hurdles with which to contend. For instance:
- You have a much more limited pool of potential buyers. Lenders are not likely to give anyone financing if they do not have significant capital. In fact, buyers will need 50% of the deposit in order to be considered for this type of loan.
- The economy plays a role. In tighter times, such as following a recession, it is even more difficult for buyers to secure financing.
- You must seek tax advice. As a seller, you will likely need to provide buyers with information pertaining to the counsel you received around Capital Gains Tax, stamp duty land tax, income tax and/or inheritance tax.
- Consider environmental impacts. You will gather surveys and reports related to your land. Buyers need to know if there are issues, such as flood risk, contaminated land or restrictions on the types of development that can take place in that specific location.
- It can take months, or longer, to complete a sale. All of the issues we discussed, and others, can delay the process. And if funding falls through on the buyer’s side, you are essentially back at square one.
There are, of course, myriad other details to which you need to attend. The bottom line, though, is that while demand is typically strong for development land, selling can be an arduous, and time consuming, proposition. If you are in a position where you do not have the luxury of waiting, what are your options to sell property quickly in the UK?
You can work with a cash property buyer to expedite a sale. This process can take as little as two weeks. Yes, from start to finish – to cash in your bank account. This may be suitable if:
- You need to move quickly in order to have the funds for a deposit on a new property
- You want to cash in and retire
- You need funds to pay for care, to relocate or to accomplish any number of personal or financial goals
- Your land is not suitable for the type of development in which you are interested
- Your land no longer fits the needs of your investment portfolio
- You inherited the land and have no interest in developing it
Whatever the case, a regulated property buyer may be the solution for which you are searching. When working with such a company, look for:
- Membership to key industry organisations and associations, including the National Association of Property Buyers (NAPB), the Property Ombudsman and so on. This indicates that they operate under a strict code of conduct and ethics, which provides further protection and peace of mind for you.
- Strong financial standing. These buyers must have the funds now in order to purchase your property. Some claim to, but you need to be sure. Åsk for proof. Demand proof!
- Inclusive services. What else does this process include? Will the buyer cover solicitor’s fees and conveyancing costs, for example? Will they take on the processes and paperwork that accompany a development land sale.
- Reputation and experience. Development property sales are complex; you need to work with a buyer that has a sterling reputation in the industry as well as extensive experience.
If you need to sell property quickly in the UK, a cash buyer may be the best solution to a fast tracked process.