Before Buying Raw Land for Development in the UK, What Due Diligence Is Advisable?

Which has a press for new homes in the united kingdom, investors are looking at raw land for development. The acquisition period should include a comprehensive research. Landman Services Canada

When investors look at raw land for its development potential, it can be an interesting process. But part of that excitement could mean moving fast when the ability is there – faster compared to a rivalling investor might be able to do. 

A factor that necessarily slows this process – to good effect – is anticipated diligence. This is the necessary probe into undetectable and potentially problematic features of the property. We all do not buy automobiles without a test drive and a thorough inspection of your vehicle, inside and out. Precisely the same can be said, writ large, on the acquisition of property.

The essential review of the due diligence process should include the following characteristics of the proposed land acquisition:

– Physical – Precisely what is topographically amenable to development, including subterranean barriers (rock that is difficult to dig deep into, for example), slope, wetland presence, archaeological features and potential toxic contamination? Likewise, a boundary survey should establish these topographical features and if any buildings improperly encroach on others’ land.

– Legal – Besides evidently established name, any existing covenants, tutoriaux and rights-of-way should be uncovered in the anticipated diligence process. Zoning and site plan approvals also are critical and can sometimes be “deal breaking” considerations.

– Financial – Price and value of a property are not always the same thing. For the investor, it’s about buying low and offering high, so in the pre-purchase phase a genuine look at both parts of the equation is important to the complete enterprise.

– Sustainability – Properties’ durability performance is about more than “doing the right thing, ” however that is still a fine motivator and the one which can favourably impact the in close proximity to future marketability of a property. However it can also affect the property’s economical performance in rental development, duration to let, downgrading and the time required to sell the property. Of note, residential and some commercial built properties place high values on sustainability features, while some “green” scenarios can be a poor fit with professional development.

– Cultural – How will this land transaction affect the surrounding community? And of equal importance but a slightly different question, how will the community see it can easily affect them? Expansion always means change, and change more often than not meets level of resistance. That said, advocates for affordable housing have found be advocates for development, alleviating the outsized demand with an increased resource, which tends to lower prices.