Key Points to consider when buying land.
There are several key issues to remember when purchasing a piece of land. Land tends to exchange hands between land agents, farmers and specialists rather than being advertised on the high street through an agent. Land can be purchased for a variety of uses and land agents generally source land directly from land banks which eliminates the third party and makes buying land a more simple process. Auctions also provide an alternative route.
• Before purchasing a piece of land it’s important to look at the ground conditions, this will affect the suitability of the plot. If you are buying land for farming purposes then check the soil type and its suitability for crops. Always check if the land is on a flood plain too.
• Access is key, how do you get onto your piece of land? Does that access point belong to you? Make sure that you will not be held to ransom after the purchase and that you have full access. Check the shape of your plot too as this will affect the type of property you may be wanting to build. Are there services on the land or will these need to be connected? If there aren’t any then the cost of these can be financially demanding. Does the land already have planning permission or has it been built on before?
• How will you pay for your land? Special finance is available for commercial and rural business as these purchases are considered more risky than a standard mortgage and property. It may be that you will need a larger deposit or have to offer solid security to the lender. Securing the right type of finance for your purchase is key to its success.