The most important part of preparing land and property for sale is ensuring everything a potential buyer wants to know is legally documented and presented clearly, say agents.
This includes up-to-date land ownership records, clarifying historic agreements on rights of way and access routes, identifying tenancy agreement terms and end dates, and displaying any responsibilities or liabilities a new owner must take on.
Big issues can arise when such information is vague, and the best bidder is one who is aware of any potential concerns, as they are more likely to complete the sale.
If a buyer pulls out and the property is put back on the market after being advertised as being under offer, this could prejudice other viewers against it.
Associate at H&H Land and Property, Tim Sedgewick, said the firm experienced one case where a misplaced FENSA certificate for the farmhouse windows nearly scuppered the whole deal.
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What you can change
While planning consent can be a boon for some purchasers, Mr Sedgewick warns that highly specific or restrictive permissions could be unhelpful, as they leave less flexibility for an incoming owner.
“The local authority may say it can’t be changed or revert back to the original planning application if a new one is submitted,” he said.
Access routes
Access route permissions need to be checked as well. If they’re for agricultural use only, this can affect diversifications and using converted buildings for residential use.
Rights of way
The majority of farmers own their drive but if this is not the case, these rights of way should be confirmed to prevent any disputes at a later date.
Reserved access
Similarly, if a farmer who is selling surrounding land but remaining in the farmhouse requests reserved access, this can discourage buyers.
Overage clauses
Overage clauses, where a seller is entitled to receive further payment if the property receives an uplift in value as a result of planning consent, can make negotiations difficult.
If accepted, crucial decisions such as when the money is payable must be legally documented.
Fixed equipment
Fixed equipment, such as buildings, fencing and grain dryers, should be maintained or improved ahead of going to market, says Duncan Barrie, partner at Galbraith.
Structural surveys will pick up on any property issues and having to pay for improvements could put off buyers or result in a lower offer.
Water supply
Investing in an existing water supply, for both stock and irrigation, is sensible. This could be an opportunity to put in a borehole or connect water pipes to more fields.
Lots
Both over and under-lotting a holding can cause problems, according to Tom Bishop, associate partner at BCM.
Too many lots can get complicated, with potential buyers overlapping, and not enough lots can put off farmers looking only for land and not the liabilities of additional buildings.
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