Your Guide To Buying Land Or Property To Develop

The commercial property market can be incredibly challenging to navigate, with issues ranging from sourcing the land or property itself to financing and the purchasing process of this property.

Here at Andrew Lee Property Lawyers, we’ve put together this helpful guide to buying land or property to develop.

Identifying Suitable Land Or Property

The first step is to identify suitable land or property to develop. This includes thinking about the location of the area, how accessible it is, the available infrastructure, the site conditions, the development potential, financial feasibility, environmental considerations and the market demand for the land or property.

Development Purchase Options

There are a few different ways to finance the purchase of land or property for development. Firstly development finance can provide funds for the purchase and construction. Repayment terms are normally based on the projected value of the completed development.

Secondly, bridging loans are short-term loans between the purchase of the land and the availability of long-term financing, helpful when quick funding is needed or when traditional financing options are not available. Private equity firms may also finance a project in exchange for a stake, while joint ventures involve partnering with another party to join resources to finance the development.

The Land Purchase Process

An initial negotiation will typically happen first, with a non-legally binding document that will serve as a framework for the transaction. This will outline key terms agreed between parties such as the price and deposit amount. Option agreements can also be set up where the seller grants you an exclusive right to the land for a specified period, handy if developers are not ready to commit.

Before purchasing land or property, due diligence is essential to ensure the land is suitable for the intended development. Searches on the property and the surrounding areas should happen, as well as title checks to verify ownership and address any restrictions.

After all of this has been done, it will be time to formalise the sale and purchase agreement. Once this is finalised, identical copies of the Sale and Purchase Agreement are signed by the parties, which is when the transaction becomes legally binding. The buyer will pay the deposit and a completion date is agreed.

Once the remaining balance is paid, the buyer takes legal ownership of the land, and after completion, the buyer’s legal team will register the purchase with the land registry.

Help Buying Land Or Property With Andrew Lee

If you’re looking to buy land or property to develop, the team here at Andrew Lee Property Lawyers can help. We offer a range of services tailored to property developers in South East England. We can assist with all manners of property law in these situations, such as restrictions, easements, planning and any other legal obligations.

As well as developers, we can help with a vast range of property services for buyers, sellers, investors and landlords. If you’d like to find out more about how we can help, feel free to contact us today.