Selling a rural property or farm: is now the right time?

Securing the best price for a farm, rural business, or land is the main objective when we market a client’s property.

In the last eighteen months, we have seen a decline in the number of farms and rural properties coming to market. People have postponed their plans to sell due to the pandemic, and some people have delayed a sale as they think property prices have declined. However, we believe the opposite is actually true.

Like all commodities, rural properties, farms and agricultural land go up and down in value, and the lack of availability has increased their value.

So, in short, now is a very good time to put a property on the market – even with the twists and turns of the pandemic!

However, to achieve the best possible price and to have a smooth process, there are several things you need to do. For instance:

• Present the property in the best way possible – tackle all of those little maintenance jobs you have been putting off.
• Employ an experienced solicitor – ask them about their previous work, how many farm sales and rural cases have they undertaken.
• Discuss the sale with your accountant before making your final decision – can you benefit from any potential tax savings and discuss the potential capital allowances.
• Establish likely timescales with your selling agent as soon as possible and ensure a comprehensive sales pack is ready for when the property goes on the market.

The sales pack should include:
• relevant searches
• rights of way
• employee details
• title to the property
• grazing licences, tenancy details of other such rights of occupation
• environmental schemes
• basic payment scheme entitlements
• planning permission documentation and building regulation consents
• common rights, sporting rights and any other support documentation

As a premier partner to Ordnance Survey, we can help you draw up an accurate scale plan of the land and buildings for sale and ensure they are compliant with Land Registry requirements. Don’t forget to include water supply and the location of drainage pipes, cesspits, septic tanks and soakaways.

Other considerations include which items or parts of the farm are liable to VAT and your legal obligations to inform employees or tenants about the intended sale. Don’t forget to check that all appropriate notices have been served on tenants.

Making sure as much information as possible is written down is also a good idea. This includes tenancy agreements and the items included and excluded from the sale.

At Walter’s Rural, we have been helping farmers and rural businesses prepare their property and land for sale for over 20 years. We are confident that we can secure the best price for you and that now is a very good time to consider putting your rural property on the market.

If you’d like to know more or would like us to value your property, please call 01522 696 496 or email Ray@Walters-Rural.com