In the realm of property sales, navigating the sale of land with planning permission requires careful consideration and strategic execution. Such was the case with a mature orchard nestled within the idyllic Vale of Evesham, which also included three former farmer workers field shelters.
This case study looks into how a decision to leverage the auction process not only facilitated a swift and secure sale but also maximised efficiency and cost-effectiveness for the seller, ultimately unlocking the full potential of the land.
The land and the challenge
The land, spanning just under 2.1 acres, held potential for limited self-build holiday let development. With planning permission sought for a self-build holiday let on one of the shelters, the owners envisioned a strategic approach to unlock value from the site.
The challenge lay in devising a lotting strategy that would expedite the sale process while maximising returns.
Exploring options
Several options were considered, including selling individual parcels upon obtaining planning permission, selling the entire site, or exploring the auction route (either in separate Lots or as a whole).
Recognising the need for speed, security, and efficiency in the transaction, the auction emerged as the preferred choice.
A strategy was devised to sell the parcels over consecutive auctions, with a close eye on potential interest from buyers in acquiring the entire site to streamline the process and reduce further planning costs.
Decision and execution
With the help of the Sheldon Bosley Knight’s planning and architecture department, planning permission was approved for a self-build holiday let on the first shelter.
With the main objective of selling with speed and security in mind, the auction was identified as the most suitable route.
Marketing materials were prepared, and the first parcel was launched six weeks before the auction, accompanied by a competitive guide price of £85,000 to attract interest.
We also split the orchard into three parcels, with the first parcel being sold including 1.4 acres or orchard. Anticipating potential interest in acquiring the entire site, we informed potential buyers the seller might consider pre-auction offers on the entire Title.
The outcome
The strategic approach bore fruit, with competitive bidding resulting in pre-auction offers for both individual parcel and the entire site.
Ultimately, a pre-auction sale of the entire site was secured for £220,000, exceeding expectations and streamlining the sale process.
The sellers achieved their long-term aims with a single auction sale, eliminating the need for additional rounds of planning and reducing the cost base, much to their delight.
Key takeaways
This case study offers several key insights: strategic planning and lotting can optimise the sale of land, particularly with planning permission; consideration of offers for an entire site can provide efficiency and cost-saving benefits for sellers; and auctions offer a fast and efficient method of selling, especially for sellers with multiple parcels or development opportunities.
Conclusion
The success of this auction sale exemplifies the power of strategic decision-making and proactive execution in unlocking the full potential of land with planning permission.
By embracing the auction process, the seller not only achieved their objectives efficiently and cost-effectively but also maximised returns and streamlined the sale process.
This case study serves as a testament to the efficacy of auctions in navigating the complexities of land transactions, ultimately enabling sellers to unlock value and achieve their long-term goals.
