HPH170 : The process of buying land – with Michael Campbell from Spratt Endicott Solicitors
Mar 29, 2017
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Guest, Michael Campbell from Spratt Endicott Solicitors, explains the key stages of buying land for a self build project. Topics include the legal steps in land acquisition, risks of possesory title, overage and leasehold properties, consequences of withdrawing from a purchase, and potential challenges in buying land.
Key takeaway 1: When buying land for a self-build project, it is crucial to thoroughly examine the title, ensure access, confirm services and drainage, and review planning implications.
Key takeaway 2: Working with a solicitor is essential to navigate the legal aspects of land purchase, including obtaining necessary searches to identify potential issues, and to mitigate risks through insurance.
Deep dives
Understanding the Land Buying Process
The podcast explores the process of buying land for self-build projects. The guest, Michael Campbell, discusses the key aspects to consider when purchasing land, including examining the title, ensuring access, confirming services and drainage, and reviewing the planning implications. He emphasizes the importance of working with a solicitor to handle the legal aspects, including obtaining necessary searches to identify any potential issues or restrictions on the land. Campbell also highlights the significance of insurance to mitigate risks, such as restrictive covenants or uncertain titles.
Challenges and Considerations in Land Purchase
Campbell shares examples of challenges that can arise during land purchases. These include overage agreements, where the land seller requires a share of future development value, and leasehold arrangements with limited terms that may affect resale value. He also discusses the importance of investigating potential footpaths or easements that could impact access or usage of the land. Campbell stresses the need to thoroughly research and understand any covenants, restrictions, or obligations associated with the land before committing to a purchase.
The Exchange and Completion Process
Campbell explains the exchange and completion stages of a land purchase. The exchange involves signing a contract and exchanging it with the seller, establishing a legally binding agreement. The completion is when the actual transfer of ownership occurs, along with the payment of purchase funds and vacant possession of the land. Campbell notes that if either party wishes to withdraw after the exchange, penalties or compensation may be applicable. He also discusses typical costs involved, such as solicitor fees, stamp duty land tax, search fees, and potential insurance expenses.
Michael Campbell from Spratt Endicott Solicitors explains the key stages that need to take place in order to buy a piece of land for a self build project.
Ben also chats through some of the challenges he faced during his plot search and subsequent land purchase.