The cyclical nature of Local Development Plans means that there are continual opportunities throughout Scotland for many landowners to tap into what can be a lucrative income stream.
However, all that glitters is not gold and property consultants Bidwells is urging farmers and landowners to take good advice and follow due diligence procedures before committing to any deal with a land promoter or developer.
The prospect of selling your land to a developer for a good sum of money is, of course, attractive and many of our clients have (successfully) taken the long-term view that by selling part of their land they are providing for the future of their own families and business,
said Andrew Wood, Partner with Bidwells property consultants.
This is all well and good if the deal has been rigorously tested and future-proofed.
Promoting your land for development is a long-game and it is vital that, at the outset of any negotiation, you protect your asset. There is risk to any agreement and so the correct advice is essential to understand the process and maximise the value of your land. Due consideration must be given to whether you will need to meet up-front costs such as services to the proposed development site or whether site specific issues such as ecology or archaeology are an issue.
The correct ownership and tax efficient structure should be in place before entering any negotiation and an idea of what type of agreement works best for your business – whether that is a promotion or option agreement. In any circumstance you will still need development and planning expertise to maximise the outcome.
Bidwells planning team continually monitors the status of Local Development Plans (LDP) throughout Scotland, including consultations and LDP adoptions which can provide opportunities for site promotion or a requirement for other representations to be made.
With the right advice and business structure in place, there can be great rewards for those who have sites in the right location and opportunities arise all the time. You can only sell it once, so make sure you have covered all the bases!