Last edited 05 Sep 2018

Land acquisition

Land acquisition is the process of buying a piece of land. The motivation behind land acquisition can be varied; perhaps as an alternative investment to shares, as the starting point for a self-build project, to develop at a later date, and so on.

As with other forms of acquisition, the caveat emptor rule applies which makes it incumbent on the buyer to undertake thorough research to identify any potential risks or problems.

The cost of a plot of land depends on factors such as; the desire of the vendor to sell, location, size, form, accessibility, proximity to infrastructure and transport links, the general state of the property market, whether it has or is likely to receive planning permission and so on. The term 'existing use value' refers to what land is worth in its current form, whereas 'hope value' refers to what it is worth based on the expectation of getting permission for development. Generally, land that has planning permission for development has a higher value than land that does not.

Land acquisition methods include:

Options for finding land to acquire include:

A full and proper land survey should be carried out by a land surveyor prior to acquisition.

Feasibility studies can help determine the usability of the site and identify any potential issues that may be encountered.

A legal professional should be appointed to oversee land acquisition, although in general, purchasing land is less complicated than the buying and selling of property. Nevertheless, a lawyer specialising in land transactions will be able to ascertain issues relating to permissions, boundaries, rights of way, right to light, noise issues, and so on. They will also be responsible for checking that the land has clear title (i.e. that it is legitimately for sale), and that the legal documentation relating to the site is accurate and correct.

Information about the land in question can be obtained through the Land Registry.

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