Amenity land – Amenity land is seen as ‘raw’ or investment land. This type of land is bought with the vision that its value will increase over time.
Strategic land – This type of land is defined as agricultural or amenity land that may have future development potential. (In the next 5-20 years.) In the UK, housebuilding is falling short of the demand, owning this type of land proves great for investment purposes.
Land with outline planning – Outline planning permission means the seller has sought to establish whether the scale and nature of a proposed development would be acceptable to the local planning authority, before a fully detailed proposal is put forward. This type of planning application is an overview of a proposed development. This tells us that planning permission is very achievable and is only dependant on the full proposal put forward by the buyer.
Land with full planning permission – Land with full planning will feature a higher sale price than strategic or amenity land. This is because the development has already been packaged and is ready to go, saving you, as the buyer, time and money.
Vacant Commercial Buildings
Let Commercial Buildings
The gross development value of the land. This is the end goal value of the development, the price that it would be potentially sold at, on the open market.
How is GDV calculated?
Profit = GDV – (Construction + Fees + Land)
Does the land plot meet all of your requirements?
Is the plot size big enough for the development you are proposing?
Have you taken into account space for residential parking, refuse areas, communal space and bike sheds? (If these are deemed necessary within your development proposal) Or will this space affect the number of units you can build?
When looking to buy land you want to ensure that the landowner owns ALL of the land rights. Sometimes landowners can sell certain rights i.e., the mineral rights or the right of way. Mineral rights are the rights to exploit, mine or produce minerals or other extractive resources below the surface of the property.
With regards to right of way, make sure that there is access route to the land and it is not owned by a third party.
If you’re looking to develop the land, then owning the mineral rights is a must. Be vigilant when looking through site details and when making your enquiries.