Purchasing Agricultural Land

It is advisable to take legal advice when considering purchase of agricultural land, whether it be at auction or by private sale. This guarantees that both agent and buyer are completely aware of all aspects of the agreement.

Important points to check are boundaries and who owns them. The title deeds or seller should be able to confirm ownership. If there are any ditches on the land, some of which are maintained by one of the drainage boards, in which case drainage rates will be payable. If the land should have the benefit of a water supply. The seller should be able to produce an invoice from the Water Authority confirming this. In some cases the supply may run through private land and a check should be made whether appropriate rights exist for the water supply to continue.

A search with the Local Authority will reveal any recorded public or definitive rights of way affecting the land and the seller should provide details of any private rights affecting it. Some land may fall within a Nitrogen Sensitive Area, Environmentally Sensitive Area or a Site of Special Scientific Interest, whereby the land owner will normally have entered into an agreement with the Government to protect the land under these particular schemes.

Many of those investing in agricultural land are looking to acquire strategic plots that may gain residential planning permission in the future. There are also those who are buying agricultural land to exploit its amenity and leisure potential. The booming pony paddock market is an example of this, where it is not uncommon for horse paddocks close to villages or other settlements to achieve 20,000 pounds an acre. With access to water and electricity the value of agricultural land can increase to a staggering 30,000 pounds per acre.

Although still relatively easy to buy land in the UK at a bargain price, these plots are usually badly located and small in size. A substantial plot size in a desirable location is a far more attractive combination and on receipt of planning permission, could prove to be extremely valuable.