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Many unscrupulous Land Agents and vendors realise that your plot will make you large profits when planning is granted so they put a permanent legal clause in their selling documents that when you do sell your plot they want a share of the profit!! this could be anything between 5% and 20% of your plot, particularly to a large property developer who, even if you are happy to pass on 20% of your profit to the original vendor, they certainly will not be happy passing on 20% of their profits to him!! - our profit. These clauses also apply regardless how many times the land is sold and can last for as much as 50 years. These clauses MUST be avoided at all costs as it can make it almost impossible for you to resell you.
Always get the land registered in your name with the governments land registry office, get 100% ownership of the plot and full legal ownership, with the ability to sell it at any time to whomever you want and at any time or price you desire. Settle for NOTHING less. Any doubts of fancy clauses then walk away.
There is a lot of jargon in any business but as regards buying land for investment it is quite simple. There are areas which are not suitable for development and will never get permission, such as National Trust Land, Town Parks, Historic archaeological sites, sites of natural beauty, mountain ranges, polluted sites, unstable sites i.e. near mining or cliffs, flood plains, army ranges etc etc. All other sites can and may be developed in the future, sites where existing factories and buildings have been are known as Brownfield sites and although it may seem obvious to build houses on these sites there is great reluctance for homeowners to purchase houses on sites that may be polluted and will almost always be in a highly built up industrial area.


Land prices have risen by more than 926%in the last twenty years out-stripping house prices.
Source: BBC
Large developers have been ‘stockpiling’ land into their own land banks with the knowledge that in future years as towns and city’s naturally expand planning will be granted.
This enables the shrewd private investor to emulate the fortunes that have been made by developers without tying up huge sums of money.