Self-Build Mortgages  Land Purchase Process

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Land Purchase Process

Get a Free Quote Buying Land - The Process

Many development plots become available through the auction process, which means that the finance will have to be readily available, up-front. When purchasing through an auction, a 10 percent deposit has to be paid on the day of the auction, with the remainder due within 28 days.

Apart from auction purchases, there are also land agents that deal specifically with the sale of building plots. Although many of these agents charge a fee, they are able to locate suitable plots and assist with the financing for those who are unable to deal with the uncertainty of buying through an auction.

Making an Offer
As with the purchase of any property, land is also subject to having offers accepted or rejected. Purchasers should be aware that if land is being offered on the open market and not through auction, the expectation is that the land will reach close to its asking price, although it is likely that the owner may entertain offers.

It is essential that the financing of the land is largely resolved before the offer is placed. At auction, the vendor does not expect a long chain as is often the case when selling traditional property. For this reason, therefore, if you are not in a position to proceed quickly, your offer may be rejected. If you are buying the land with the assistance of a mortgage, make sure that you have an offer in principle in place for the amount that you are offering (or if you are not obtaining a 100 percent mortgage - which is the most likely scenario) that you have evidence of the availability of the additional finance.

Surveys
Having a survey completed on a plot of land may seem a little bizarre and, indeed, a traditional survey would be largely pointless as there is no structure to consider. This does not mean that you should not seek expert advice. Instead of a traditional survey, it may be worth considering hiring a planning consultant or an architect to give an opinion on the viability of your project. Although these types of experts are costly, it is well worth establishing exactly what you can and cannot expect to achieve, earlier rather than later!

Conveyancing
This is the point where you begin to hit familiar territory. Once you have agreed the price, you are able to instruct solicitors who will deal with the conveyancing. Whilst there are slight anomalies in the legal procedure, this is not usually a problem and your solicitor should be able to deal with the situations arising in the same manner as he or she would with a standard property.

Summary

Bullet Point Theoretically, the process of purchasing land is very similar to that of purchasing property;
Bullet Point vendors of land will have a general expectation of achieving close to the asking price due to the high demand for building plots;
Bullet Point it is also generally expected that you are not be part of a chain and that finance is readily available;
Bullet Point although a survey is unnecessary, seeking the advice of professionals at an early stage may possibly prevent lost time and money in the long run; but
Bullet Point once you begin the purchasing process with your solicitor, you should not be aware of many differences and your solicitor should be comfortable with the process

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