Unlocking the Value of Your Land Through an Estate Developer
Meet Orchestra Land at the Farm Business Innovation Show, an estate developer who can add value to your land, and increase profits!
In times of economic uncertainty, there are opportunities for farmers and estate owners to diversify and maximise value through development. Due to record levels of demand for housing and warehouses (often referred to as beds and sheds by politicians), this movement is thriving.
At the Farm Business Innovation Show, our aim is to give you all the information, networking, and inspiration to help you add value to your estate. Your FREE ticket to the show will give you access to all this, so meet the people who can help you boost your profits, this November.
Discover more about how Orchestra Land can help you to develop your land, and increase revenue, here...
What Does Orchestra Land Do?
Orchestra Land is a company providing a commercially driven approach to deliver new homes, industrial and commercial units. Specialist planning and development companies are more favourable, given their specific knowledge of the latest planning and development changes. Marketing a site to multiple developers, or advising landowners on how to obtain planning consent themselves, is a specialist skill set which achieves the maximum value from land and estates.
Their aim is to deliver projects which provide a satisfactory outcome for all parties, by working with the council, local stakeholders, and residents, whilst considering the landowners personal situation. A bespoke service for landowners is essential, given each parcel of land is unique, and the potential sums of monies involved. It’s therefore important to employ a professional who is a member of the Royal Institution of Chartered Surveyor (RICS) and the Royal Town Planning Institute (RTPI).
There are two main types of agreements on a ‘No win No fee’ basis, for landowners to have a development partner on board who will fund and obtain the planning. These are:
Rather than a land purchase transaction, a Promotion Agreement might be viewed as a type of joint venture between the landowner and the ‘Promoter’, with the joint aim of maximising the value of the land to the benefit of both parties. The Promoter would be committed to promoting the site for planning, with all the associated risks of funding the planning promotion and application.
When permission has been granted, the property is marketed for sale to a range of developers. The net proceeds are then shared between the developer and the landowner when the land is sold, with the majority share going to the landowner.
An Option gives the buyer a right to purchase the land during an agreed period, when permission is obtained (the option period), typically in return for funding and delivering the planning.
Usually the option is exercised on the basis that planning permission has been granted, which will significantly increase the value of the land compared to the value without the benefit of planning permission. The price for the option may be fixed, based on a formula or subject to market value determination by a surveyor.
Often, the developer will get a percentage discount to the value of the land. This could either be planning for funding at risk with planning permission, or a fixed price could be agreed per acre of developed land.
Alternatively, the landowner could pursue planning permission themselves, but with this comes the risk of not obtaining planning and losing the planning costs. Another method is for a landowner to sell the land without planning to a developer, for a value reflecting whether there is an uplift payment on grant of planning and reflecting the risk of no planning permission on the land.
Meet Your New Estate Developer
Want to develop your estate, but not sure where to begin? Then meet Orchestra Land at the Farm Business Innovation Show, on 6th & 7th November at the NEC, Birmingham, and discover the opportunities your land can offer. Get your FREE ticket now!
For advice or a free land consultation, get in touch with Orchestra Land on:
Phone: 01707 830 222