Moving On In The Right Way

Land succession planning

With 2023 off to a rocky start, you may be wondering if it’s time to pack up and move out of your home or farm. For many, commercial land succession planning is a familiar term. However, if you are a homeowner you may not have a plan in place to maximise the value you get from your property when you sell. Approaching this in the right way could mean you maximise your retirement account, or that you are able to sell off your land assets and remain on part of your land without a mortgage or other debts to pay.

1. Evaluate your assets

The first step is to talk to a specialist surveyor before you speak to a valuer. Your surveyor will be able to discuss where opportunities may exist within your land to bank, sell and use in the future. They can draw up plans and talk through ideas for you to consider as part of your exit strategy for your home or farmland. You may discover that parts of your land may be of lower value as part of a package, but could be more attractive if subdivided into new lots, bringing more opportunities for sale and higher revenues.

2. Seek valuations

When you have considered how your land and property assets could be divided, seek a valuation on your property both with and without the future plans. There will be costs associated with the initial stages of land development, and you may decide to leave the land development to the next owner of your assets, especially if you don’t have the funds or resources to develop yourself, or you are looking for a faster exit plan. Survey development plans could help to increase the market for your sale to would-be developers.

3. To stay or go?

It’s important to discuss with loved ones whether you intend to retain a part of the land to retire on, develop or pass to future generations. Your surveyor is a great advisor to discuss the likely implications of future land developments in your region, based on the most up to date local and national legislation. They will give you an indication of what your location might look like in the future and where intensification of land is likely to occur. If you are on a residential property and looking to sell part of your land, consider whether you want to control what can be developed on parts of the land you sell, in the event that you wish to remain in the location. Your surveyor can help to protect the land with covenants prior to the sale agreement that will ensure you retain some control over its use in the future.

4. Keep up to date

You should look for information relating to climate change, shifting technology developments and global economics when considering land succession plans in the future. Increased demand for forests for emissions trading, de-centralisation of workplaces due to technology advances and migration of people from other countries are all factors that could directly impact development opportunities for your land. It’s your most valuable asset. Seek advice and consider your options carefully and you will ensure a bright future for you and your family.