How to buy land

There are plenty of reasons as to why you might want to buy land. Maybe you're thinking about starting a self build project for your own custom build, bespoke home. Or you might be undertaking a land development project for a commercial or residential property. Or you might just want to make a long-term investment in a high value area and see where the market takes you.

If you haven't bought land before, it might seem like a daunting process - one that's completely different to buying and selling a property. But in reality, buying land can be a much smoother and simpler process than buying property. You just need to know where to look, and what you're in the market for to find the right plot.

So if you're ready to build your own home or make a new investment, let's take a look at how you can buy land in the UK.

Different types of land

There are two main types of land: greenfield and brownfield land.

Greenfield land

Greenfield land has never been built on before. A greenfield site is full of undeveloped land. You can get greenfield land in urban areas, but they're often based in rural areas like woodland, grassland or agricultural land. It could even literally refer to a green field!

Brownfield land

Brownfield land has been built over previously (not including farmland) but is no longer being used. Brownfield sites have been (or still are) previously developed and are occupied by permanent existing structures.

The land buying process

So, what's the process for buying land?

Although it's similar in some ways to buying property, buying land varies significantly in many other ways - and in some cases, the role of an estate agent is really minimal.

We’re going to take you through the land buying process and what you need to think about before buying land.

Finding land for sale

First, you'll need to find rural plots of land available for sale. Whether you're using an estate agent, land agent, an appointed representative, or looking independently, make sure you set out specifications clearly before starting your search. Include the size, location and purpose of the plot of land you're looking for.

Sometimes you'll be able to talk to the owner of the land directly, or search for land for sale on the internet.

But in the vast majority of cases, you'll be able to check the specifications and status of the land via the HM Land Registry.

You can find out more about how HM Land Registry works here.

Factors to consider

Cost of the land

If you're not interested in the long game, finding the cheapest land for sale might not be your top priority. But if you want to buy land as a long-term investment, you may want to find cheap land that holds value or has the potential to grow in value in the future.

You'll also need to think about your budget, including the price of financing when you're budgeting for buying land.

Location

You can talk to the local planning authority or local council to register your interest in a plot of land in a particular area. Building good relationships with local council members and land agents is a good way to beat the competition for popular plots of land.

Just as with property purchasing, location plays a big part in the price of land. So remember - if you've found the ideal location for your land purchase, it might be more expensive if it's in the Southern regions of England.

However, it could be worthwhile to make an investment in a cheaper area that holds higher projected value. You could then use the site as a basis for a development project.

The benefits of buying land

Take a look at some of the key benefits of buying land.

It's a secure investment

Land can't be stolen or destroyed, and you don't have to do anything with it. Because it doesn't deteriorate (unless it's in a volatile area), the land is still worth something, even if it stays in an undeveloped state.

It's a limited resource

Unlike properties, land is a limited resource as no-one can make any more of it. This makes it a really valuable investment. It's also a tangible resource, which makes it more secure even if monetary values change over time.

It's low maintenance

One of the great benefits of purchasing and owning vacant land is you don't have to spend time dealing with a lot of the issues that come with buying property, including electricals, foundations and plumbing - there's little to no maintenance required.

Unlike commercial buildings, undeveloped land doesn't need any upkeep. You also don't have to deal with making changes to an existing property that isn't fit for purpose.

It's easy to purchase land

In a lot of cases, land purchases are private, cash transactions that don't require expensive loans or mortgages with high-interest rates.

But if you are on a budget, there are a tonne of affordable financing plans that make it possible for people to buy land.

Buying land for a residential or commercial property

Buying land to build a commercial or residential property (or you want to sell it via an estate agent so other people can use the land for these reasons) is more expensive than agricultural land. It can also be expensive to prepare the land for building commercial or residential properties.

Questions to ask when buying land

You might think you've found the perfect plot for your dream home or next investment, but it's important to double check all the fine details.

Here are some questions to ask the current land owner:

• Are there any issues with the land?
• Why are you selling the land?
• Are you selling land via an estate agent or independently?
• If there's an existing infrastructure or current property on the plot, what type of property is it?
• What are the access rights?
• Is planning permission in place? If so, is it outline planning permission or detailed planning permission?
• What is the ground's condition like?
• Is the plot of land connected to sewerage, water and electricity?
• Are there septic tanks or wells on the land?
• What are the transport links like?
• What's the guide price?

Land development feasibility study

You should also make sure you conduct a feasibility study into the plot of land you're looking to buy. This will give you an analytical and systematic insight into the potential of the land, and whether or not it's a worthwhile investment for your development.

Land surveying

You need to conduct a land survey prior to conducting a development. Land surveying refers to mapping out the shape and boundaries of a plot of land. A qualified and registered surveyor will use specialist equipment to run tests on the land.

You'll need to factor hiring a land surveyor into your budget when you're buying land (or building on it). Make sure you check their reviews and accreditations to ensure you're choosing one that's right for you.

It's always recommended to get a topographical survey as it's the most extensive kind, uncovering details about natural and man-made features on the site.

Even if you don't want to get the most extensive type of survey, it's still really important to seek professional advice and make sure you uncover any hidden issues like flood risks, boundaries, rights of way and overhead power lines.

After all, it might look like the perfect plot, but you need to make sure you're covering all the bases before purchasing the land.

Land mortgages

Just as with a property mortgage, you need a land mortgage. Unlike property mortgages, mortgages for land purchases can be trickier as there isn't a physical building to act as collateral if you fail to make the repayments.

Before applying for a land mortgage, make sure you consider:

Organise a professional survey and use the report to inform the lender about any legal issues, boundaries, electricity, sewerage and water, restrictions and zoning and whether it's close to a public highway.

It's also recommended to talk to the local authorities or local planning officials to find out about any nearby developments planned for the future. If a set of new homes, a motorway or a park is due to be built nearby in the near future, this could affect the value of your land or compromise your plans for the development.

You also need to think about the intended purpose of the land and how this might affect the cost of the land mortgage. For example, if the land doesn't have an existing structure to act as tangible collateral, lenders may be less confident as the proposed project has a lot more obstacles and potential issues that could delay the process. This would mean the mortgage would be more expensive.

The deposit amount would also vary depending on the size of land and type of mortgage. Remember - not all lenders offer land mortgages, so your choices are more limited than that of a normal property mortgage.

Types of land mortgages

Agricultural mortgage

An agricultural mortgage is used for agricultural land like farms or other forms of land used for rural properties to keep animals and grow produce.

Commercial mortgage

This is for any type of commercial property development such as residential housing, shops, or any other commercial property type.

Self-build mortgage

A self build mortgage is often used for a self build house. This refers to the development of a new property, often for residential use where developers create their own home. It could also be used for commercial use on private company buildings on plots of land that are empty.

Woodland mortgage

A woodland mortgage is for rural land being used as a private sanctuary or long term investment.

Stamp Duty Land Tax

As well as your land mortgage, you might have to pay stamp duty land tax (SDLT). Stamp Duty is a tax payable to the government if you buy a residential property or piece of land over £250,000. (The rules will be different for Scotland and Wales).

However, if you qualify for first-time buyers relief, you won't have to pay any stamp duty on properties costing up to £425,000, and get a discounted rate on property purchases up to £625,000.

You can find out more about Stamp Duty Land Tax here.

Land auctions

Just as you can auction houses, you can buy land through land auctions. Land auctions can be a great opportunity to buy land at a cheaper price.

Planning permission for building on land

Before you buy land, make sure you know if planning permission has already been granted, and if so, what type of planning permission is in place. You'll need to talk to planning officials to make sure you're aware of the planning permission status of the land.

This can help you avoid any legal disputes, and ensure your decision to purchase the land is still a worthwhile investment.

When you're purchasing land, it may have outline or detailed planning permission.

Outline planning permission

Outline planning permission is (you guessed it) just the outline of your development plans, rather than the full picture. It's used to gain an initial understanding of whether or not the development is suitable for the land in the first place. The reserved matters (with all the details of the project) will be decided later.

Detailed planning permission

Detailed planning permission, otherwise known as a full planning application, includes all the details of your development including a full set of plans. This will inform the local authority's decision as to whether or not you can go ahead with the planning.

Summary: Do your research!

Bottom line? When it comes to buying land, you need to do your research.

Think about where you want to purchase the land, what type of land you want, why you want to buy it, and how much it's going to cost (as well as the investment opportunities). If you want to make sure you're covering all the bases, make sure you're seeking professional advice as and when you can.

And if you're selling land or property, you can use our Estate Agent Comparison Tool to find top-performing estate agents in your area. You'll get a tailored short list of estate agents to help you choose one that is best suited to your property (or land purchasing) needs.