Can you sell agricultural land but with a caveat?
Discussion
Muncher said:
Yes you can, providing that the benefit of the restrictive covenant (the legal term for what you are talking about) can be conferred upon adjoining land.
The original person taking the benefit of the covenant doesn't need to own adjoining land as the covenant can be enforced as a contract.Smurfsarepeopletoo said:
I have no idea on this one, but out of curiosity, why would you want to restrict the use of the land? Woulnt this limit the buyer pool massively, and also reduce the price you could ask for the land.
Agreed - if you add an overage stipulation then expect less for your land and for it to hang around for a niche buyer.I have found usually these plots of land are on the edge of towns etc that have been refused planning permission and the seller wants the best of both worlds - the mkt value cash now that still includes a possible planning permission premium and then also a long dated option on future value again if permission is actually granted !
If its genuine farmland and highly unlikely to get planning permission then the buyer is likely to want it to farm and thus the overage is acceptable, as long as its priced as farmland.
lordturpin said:
Agreed - if you add an overage stipulation then expect less for your land and for it to hang around for a niche buyer.
I have found usually these plots of land are on the edge of towns etc that have been refused planning permission and the seller wants the best of both worlds - the mkt value cash now that still includes a possible planning permission premium and then also a long dated option on future value again if permission is actually granted !
If its genuine farmland and highly unlikely to get planning permission then the buyer is likely to want it to farm and thus the overage is acceptable, as long as its priced as farmland.
Who is likely to buy a piece of land that they have to sit on for 50 years, and then have to pay a percentage of the increace in value for the pleasure.I have found usually these plots of land are on the edge of towns etc that have been refused planning permission and the seller wants the best of both worlds - the mkt value cash now that still includes a possible planning permission premium and then also a long dated option on future value again if permission is actually granted !
If its genuine farmland and highly unlikely to get planning permission then the buyer is likely to want it to farm and thus the overage is acceptable, as long as its priced as farmland.
And this might be a stretch, but if the buyer has to pay more if the value increases, can the buyer then stipulate that if the value of the land decreases, then the seller needs to cover a percentage of that cost?
Smurfsarepeopletoo said:
Who is likely to buy a piece of land that they have to sit on for 50 years, and then have to pay a percentage of the increace in value for the pleasure.
And this might be a stretch, but if the buyer has to pay more if the value increases, can the buyer then stipulate that if the value of the land decreases, then the seller needs to cover a percentage of that cost?
Me.And this might be a stretch, but if the buyer has to pay more if the value increases, can the buyer then stipulate that if the value of the land decreases, then the seller needs to cover a percentage of that cost?
I'm buying 8 acres that will have a pretty restrictive covenant on it. The seller could have got more for it without the covenant, but as they've put a load of time and effort into making habitat for wildlife, they want to sell it to someone with the same intentions. I have zero interest in developing it, or flattening their woodland, so I am happy with the deal.
Yes, I am effectively paying a shed load of money for Owl habitat next to my house. If we ever sell the place, we'll probably stick similar covenants on the whole thing. We'll get less for it, but I really don't care.
rxe said:
Me.
I'm buying 8 acres that will have a pretty restrictive covenant on it. The seller could have got more for it without the covenant, but as they've put a load of time and effort into making habitat for wildlife, they want to sell it to someone with the same intentions. I have zero interest in developing it, or flattening their woodland, so I am happy with the deal.
Yes, I am effectively paying a shed load of money for Owl habitat next to my house. If we ever sell the place, we'll probably stick similar covenants on the whole thing. We'll get less for it, but I really don't care.
I'm buying land next to my house with a restrictive covenant that it can never be built on. I've pre-agreed they'll let me build a timber shed that isn't habitable but otherwise it will legally remain agricultural land and we'll use it to have some chickens.I'm buying 8 acres that will have a pretty restrictive covenant on it. The seller could have got more for it without the covenant, but as they've put a load of time and effort into making habitat for wildlife, they want to sell it to someone with the same intentions. I have zero interest in developing it, or flattening their woodland, so I am happy with the deal.
Yes, I am effectively paying a shed load of money for Owl habitat next to my house. If we ever sell the place, we'll probably stick similar covenants on the whole thing. We'll get less for it, but I really don't care.
My previous boss once purchased a house with large outbuildings suitable for storage and trading goods.
The price was £350,000 or £400,000 with 20 acres of farm land that came with a caveat; Should the land be granted permission to build on within 10 years, then the previous owner would be entitled to 80% of the increased value. (If sold)
The price was £350,000 or £400,000 with 20 acres of farm land that came with a caveat; Should the land be granted permission to build on within 10 years, then the previous owner would be entitled to 80% of the increased value. (If sold)
I hope that the landlord of the C18 timber and slate barn where I keep my rusty heaps never gets the funds to convert it to a house. He has an old Dutch barn with owls in it on waste ground next door.
OP, joking apart, land law is too important for internet chit chat, because of the values involved, so lawyer up!
OP, joking apart, land law is too important for internet chit chat, because of the values involved, so lawyer up!
As a complete diversion, Owls are indeed fab.
We started with a single box and this lot moved in:
Well, technically that lot were born there. We upgraded their residence with broadband so we could spy on them and watch them having sex.
We do have a problem now though. The neighbourhood thugs have moved in and driven the Barn Owls out - here is the latest Tawny ASBO chick taking in the view:
That's why I want another 8 acres, we're going to try and encourage the Tawnys to nest a bit further away so the Barn owls get a look in.
We started with a single box and this lot moved in:
Well, technically that lot were born there. We upgraded their residence with broadband so we could spy on them and watch them having sex.
We do have a problem now though. The neighbourhood thugs have moved in and driven the Barn Owls out - here is the latest Tawny ASBO chick taking in the view:
That's why I want another 8 acres, we're going to try and encourage the Tawnys to nest a bit further away so the Barn owls get a look in.
ARFBY said:
My previous boss once purchased a house with large outbuildings suitable for storage and trading goods.
The price was £350,000 or £400,000 with 20 acres of farm land that came with a caveat; Should the land be granted permission to build on within 10 years, then the previous owner would be entitled to 80% of the increased value. (If sold)
I thought there were Stamp Duty implications in such cases ie the buyer pays SDLT based on the theoretical developed value, and reclaim it after so many years if it's not developed.The price was £350,000 or £400,000 with 20 acres of farm land that came with a caveat; Should the land be granted permission to build on within 10 years, then the previous owner would be entitled to 80% of the increased value. (If sold)
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