Louise Trist, Associate Solicitor, Mayo Wynne Baxter gives five top tips for a smooth transaction.
Selling rural land can be complex and daunting, especially if you are unfamiliar with the nuances of the market.
It’s not just a case of finding a buyer and signing on the dotted line. There are multiple considerations – legal, financial and logistical – that need to be addressed. For a smooth transaction, one of the most important steps you can take is assembling the right team of professionals who are experts in rural land sales.
This is especially important in the current market, which is hotter than usual. According to Savills, at the time of writing land supply is at its highest level in 22 years. It reported the area of farmland in Great Britain brought to the open market to the end of June 2024 had increased by 36%, to a total of 118,200 acres, from the same period in 2023, marking the eighth highest supply level since 1995.
Here are five top tips to ensure your land sale goes without a hitch.
1. Choose the right agent
When selling rural land, it’s crucial to work with an agent who specialises in rural property. Selling land differs from selling residential property; it requires in-depth knowledge of local land values, agricultural restrictions and potential development opportunities. A specialist land agent will have the skills and experience to market your land effectively, highlight the unique selling points and identify the right buyers.
After all, you wouldn’t hire a plumber to paint your house, so why ask anyone other than a land agent to handle your rural land sale?
2. Engage a solicitor with rural land expertise
Not all solicitors are created equal, and the expertise required to handle a rural land sale can differ greatly from a standard property transaction. Rural land comes with its own set of legal considerations, from agricultural tenancies to easements, covenants and development opportunities.
3. Involve a tax adviser and accountant early on
Getting professional tax advice early can save you significant headaches and money later on. Selling land may trigger capital gains tax, or have inheritance tax or even VAT implications, depending on your situation. By consulting a tax adviser or accountant who understands the agricultural and rural property sector, you can plan ahead and minimise your tax liability.
These professionals will help you understand your tax obligations and advise on the best way to structure the deal and the potential reliefs available to reduce your tax exposure.
4. Set clear expectations and timelines
Managing expectations from the outset is crucial for ensuring a smooth transaction. Set clear goals for when you want the sale to complete and make sure your professional team is aligned with these deadlines. If you have a specific timeline in mind, communicate it to all parties involved from the outset.
Be aware that unexpected delays can happen. For instance, one party in the chain might not be able to meet the proposed timeline. Checking with each professional, including those acting for your buyer, that they can realistically work to your schedule before engaging them will help you avoid unnecessary delays down the line.
5. Maintain open communication throughout the process
Ensure regular contact with your team and keep track of key milestones in the process. This not only means everyone is on the same page but also allows you to address any potential issues before they escalate into bigger problems.
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