Unless you’ve embarked on the journey of buying agricultural land, you may have little idea of the complexities of buying this type of land. Buying agricultural land can be the investment of a lifetime, but only if you have an in-depth knowledge about the land you’re buying, how you’re going to use it, and a gauge of the law surrounding this type of purchase.

It may be a dream to own the farmland you work on, or you may be looking at buying agricultural land to lease. Either way, there’s a lot of information to take in. Making sure you have everything you need from the start can prevent you from running into trouble further down the road.

Whenever you’re looking to buy land to make an extra income, the most important thing to do is to evaluate your return on investment and try to predict the amount of regular income you will make. This is one of the only ways to decide whether this is a smart financial decision. Property investment can either be a dream, or a logistical nightmare. The difference between the two usually comes from research, planning and preparation.

On top of that, having a specialist team of legal experts behind you will help to ensure that you’re acting within the parameters of the law, along with the person selling the property. That’s where we come in. At PM Property Lawyers, our commercial conveyancing team is here to help you, and make this process as smooth as possible.

But before we get into all that, let’s get into the very basics.

What is Agricultural Land?

If you’ve landed on this page, you are more than likely aware of what agricultural land is, or at least have a general idea. But the term actually covers land with a range of different uses. Initially, our minds may go to farmland, and although that would be correct, there are other types of agriculture. Agricultural land in the UK is classified as any land that is used for agriculture, which is used for trade or business purposes. This type of land includes:

  • Horticulture
  • Fruit and seed growing
  • Dairy farming
  • Livestock breeding and keeping
  • Grazing land
  • Meadow land
  • Woodlands (where the use is ancillary to the farming of land or other agricultural purposes)

The size of agricultural land can vary depending on its purpose. They can range vastly from large commercial enterprises to smaller more intimate ventures. Whatever you choose, with the correct planning, buying agricultural land can be a lucrative investment.

Buying Agricultural Land as an Investment

Many people buy property as an investment, and as a way to make a passive income. Whether it be residential or commercial property, there are many benefits to owning your own property and renting/leasing it to someone. The appeal is that the people renting the property will not only pay the mortgage, you will also make an income on top of it.

When it comes to buying land as an investment, there are many options to consider. Due to populations increasing all over the world, the demand for food is ever growing. This means land for livestock, and things like fruit and vegetables, will always be needed and valuable for the economy. These factors mean that buying agricultural land could be a sound option, depending on your personal circumstances.

As there are many different types of agricultural land, the type you decide to buy will ultimately determine the kind of project it will be. For example, you would need to think about whether you’re going to buy land that already has a function, like a farm. Or if you’re feeling a bit more adventurous, you could go for something that requires more development and act as a clean slate and build your dream from the ground up. Either way, the amount of money for the deposit, development, and mortgage will differ depending on your plans.

There may be limits and legal considerations when it comes to making changes to the land or properties that are on the land. Potential buyers need to be aware of these possible drawbacks, as if something can’t go ahead as planned, it can be the difference between buying a quality investment, and a financial blunder.

Like buying any property as an investment, buying agricultural land can be a decent long-term strategy to make a return on investment, and ultimately a steady income over time. It’s a great addition to any property portfolio, and arguably one of the more interesting options when it comes to investing in commercial property.

Just like when you’re buying any property, having the right legal team behind you can drastically improve the entire experience. At PMPL, our team of commercial conveyancers are passionate about helping your investment dreams come true. Get in touch today and we can get the ball rolling on our side.

Things to Consider When Purchasing Agricultural Land

Whenever you’re making a big investment in your life, making sure you’re prepared is the best way to avoid any potential hurdles. There are many things to consider when buying agricultural land, but we’ve listed a few for you to look over to get you started:

  • Land Leases and Tenancies – For obvious reasons, when you’re looking at buying agricultural land, you will need to get information on the current occupants of the land, if there are any. If there are people leasing the property and they have something called security of tenure, you will have to accept the tenancy on the agreed terms. If they don’t have security of tenure, you will have to think about what you want to do moving forward. Either way, it’s important to have an idea what is in place relating to any tenants on the property.
  • Planning Permission – If you’re buying agricultural land with the intention to develop it, you need to look into planning permission before you make any concrete plans. If you have a specific idea but the land you buy doesn’t have planning permission, even if you make an application, it could be refused. This would throw a spanner in the works. It’s good practice to look into what the land is currently used for, any current planning permission, and whether planning permission has been refused in the past. This will give you an idea of where you stand currently, and whether you have a viable chance of developing it the way you envisioned.

As always, if you’re unsure about whether or not going forward with a sale is a good idea, it’s worth speaking to a solicitor before you put any money down. If you have any specific questions or require specialist help when it comes to buying agricultural land, you’re in the right place.

We’re Here to Help

At PM Property Lawyers, it’s our passion to help people make their property purchasing dreams come true. Having a team of people behind you who are experts in this kind of purchase will not only help to protect your investment, but will also give you peace of mind during possibly one of the biggest purchases of your life. Our specialist commercial conveyancers are here to make sure you have all the legal bases covered, so you can focus on other things.

What are you waiting for? Contact us today and see how we can help you.