Selling land: Is it time to sell your own ‘Piece of England’?

Is it time to sell your own ‘Piece of England’?

Increasingly, people with large gardens are selling them off to property developers, and experts claim that, for some of us at least, parting with our piece of green could sow the seeds for a better financial future.

In some areas, demand for land on which to build has never been stronger. In South East England in particular, builders are desperate for sites. The government have promised that 200,000 new homes would be built in the Chancellors region over the next 15 to 20 years, so a freeholder with a good sized plot could be sitting on a substantial pot of money – and Chancellors Estate Agents have a dedicated team that are able to help.

Selling land for development examples

One fine example was a piece of scrubland in between two houses in Kings Sutton, Banbury. This land had been left dormant for many years until Chancellors’ Head of Land & Development Matt Richardson, was introduced to it via one of our branches. Within three months this piece of land and a few of the neighbours are in Option Agreement and the land has just been submitted for planning. The cost to the land owners upfront? Just their time.

Another fine example is a piece of land in Cumnor, Oxfordshire, where a deal has just been achieved that integrated two pieces of land and will generate the land owners six figures – literally out of nowhere! The end result will be five detached units for the successful property developer.

Sell part of your garden: is your land suitable?

Naturally, not every garden has profit potential as it must fulfil certain criteria. Crucially, the land in question must be at least quarter of an acre on the whole. Ideally it should also be located in a desirable area, have easy access and planning consent. If all these boxes can be ticked, you could be onto a small goldmine.

Tax implications for land sales in the UK

Even better news is that any garden gains could escape the tax man. General principles are that if the land is part of your ‘principal private residence’ and is not used for agricultural or business purposes, its sale is free of tax. Beware though, as this definition is strictly enforced. Our experience is that the garden must be dedicated to plants or fruits and vegetables and purely used domestically. Any deviation may incur capital gains tax – things like having a beehive and selling the honey at the local shop, or letting a neighbour’s animals graze on your land for a fee. Another possible deal-breaker would be the refusal of any kind of planning permission for the land you want to sell. Naturally a professional tax advisor must be consulted to provide guidance on any particular situation before any land can be fully marketed for sale with confidence.

Land appraisals from Chancellors

Why chance your own hard earned money with the complicated planning system? Let Chancellors appraise your land and find you the right developer that will enhance your garden/garage/side plot/brownfield site. They will deal with the planners, neighbours …and most importantly, the cost.

All you give up is time, and of course, your small piece of the UK.
If you have a garden that will appeal to a developer, you could raise a lot of cash. And with equities languishing, cash is a precious thing these days.

To take advantage of a free, no obligation appraisal or for some advice about the potential of your land, contact our Land & New Homes Team on 01344 408057.

Correct at time of publication. The views and opinions expressed herein are those of the individual contributor and do not necessarily reflect those of the Chancellors Group of Estate Agents Ltd or its subsidiaries. References to legislation, best practice and other matters with legal implications such as fees, rules and processes are included for information and editorial purposes only and are not authoritative, nor should they be interpreted as advice. When in doubt you should only take advice from an industry professional or solicitor where appropriate. E&OE.