Prepare ahead of sale
I am about to sell some farm land. What can I do to make the sale run smoothly?
Mark Morison, partner at Berrys, says preparation is key to a successful and speedy sale: Ensure all the paper work is in order. Check ownership title of the land and that any tenancies or agreements are formalised as even a verbal right of access you have given a neighbour could jeopardise a sale. If agreements are to be ended, formalise it.
If the land isn’t registered, register the title beforehand with the Land Registry, this can save time later on.
Make sure you are aware of any covenants relating to the land and advise your solicitor you are selling so that delays are minimised. Discuss with your accountant any possible Capital Gains Tax implications.
Take advice on any development opportunities there might be on the land that could add value and if so consider whether it is best to apply for planning permission yourself ahead of the sale or add a clawback clause so you can benefit from future gains in value. Alternatively, you may want to add a restrictive clause to protect against any future development. This could placate family members living nearby.
Choose the best time to sell the land ie when the ground looks dry and crops are flourishing and ensure everything is looking neat and tidy ahead of viewings. Making a good first impression really counts.
If you aren’t selling all the farm take care to select the most appropriate parcels of land to market and ensure the sale won’t affect the land you retain or any family property nearby.
Set a realistic guide price. Situation, soil quality, ease of access and consistent productivity will all affect the value of your particular property so be guided by your agent.
Foresee any problems with access or water and show buyers that there are solutions or implement them yourself before selling.
Be prepared to answer any questions potential buyers ask as quickly as possible and have your facts, figures and paperwork ready.
Mark Morison is based at the Shrewsbury office of Berrys, telephone 01743 290647 or email mark.morison@berrys.uk.com.
