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Land Value Estimates

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Hi,

I am looking to buy some land in East Lothian to eventually build my own home. Not sure if I’ll buy in the next year or not given the uncertain conditions in the market but was wondering, once I do make the move to buy what is the best way for me to be sure that I am not paying over the odds and that I’m getting a fair deal (or great deal if all goes to plan)?

Should I get various surveyors/ estate agents out to estimate the value of the land or is there some other person or method I should be using to get a true value?

Are there any reports or websites that I can access that will tell me land values per sq foot or meter in various areas of Scotland?

Is there anything I should be thinking about doing prior to committing to the land.

Thanks in advance for your help.

B ;)

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You asked this once before, so I take it the answers then weren't what you were looking for...

http://www.housepricecrash.co.uk/forum/ind...howtopic=111982

All I can offer is asking prices for those I've seen recently - from Scotsman Commercial Prop on Tues, DTZ have 3 plots at Archerfield now, cheapest of which is offers over £275,000. Too expensive?

I saw one in Haddington that seems to have sold - £150,000 (as I recall) for what essentially seemed to be a chunk of someone's garden. If I still have advert(s) and there's a size, I'll try and work out what that was per sq m or per acre.

Have you decided where you actually want to be within East Lothian?

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You asked this once before, so I take it the answers then weren't what you were looking for...

http://www.housepricecrash.co.uk/forum/ind...howtopic=111982

All I can offer is asking prices for those I've seen recently - from Scotsman Commercial Prop on Tues, DTZ have 3 plots at Archerfield now, cheapest of which is offers over £275,000. Too expensive?

I saw one in Haddington that seems to have sold - £150,000 (as I recall) for what essentially seemed to be a chunk of someone's garden. If I still have advert(s) and there's a size, I'll try and work out what that was per sq m or per acre.

Have you decided where you actually want to be within East Lothian?

Thanks TDD. I realise I posted a similar question back then but it was only similar. I'm trying to work out how to best validate the asking price for a plot of land. For example, if I was to find a 600sqm plot going for £250K that would be approx £417 sqm. I need to find out from somewhere whether or not that is an accurate/ reasonable value or whather or not it is taking the p*ss. Would it be best to get a few independent estate agents in to give their own estimates on the lands value or is there a surveyor of sorts who I could get out to assist before I commit to purchase?

Still haven't decided where I want to live. I'll start my detailed search sometime in Nov/ Dec ( i'll have a car by then !!) and see what areas I like the most and try to get something sorted.

Cheers.

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Haddington land plot was offers over £150,000 for 691 sq m with full planning consent, so

Offers Over £217 per sq m

Initially advertised Sep/Oct 2008, seemed to sell earlier this year and sold price on Zoopla for April 2009 is actually £150,000, so assume sold for £217 per sq m.

If I find any more, I'll let you know.

Anything without planning consent should really be valued lower, but how much lower, I don't know.

Edited by TTD

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The Archerfield ones were specified in acres, rather than sq m, will work out what they are later today.

Computing what land plots have sold for against their size would appear the best way of validating for free; any consultation with surveyors is likely to cost you a valuation fee at least...

Edited by TTD

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Mid-2008, possibly sold -

Building Plot, Stenton Dunbar Offers Over £160,000 909 sq m (0.22 acres) with outline planning consent for 2 houses = £176 per sq m

Late 2008, still for sale through EPSC

3 Smeaton Grove, Inveresk Offers Over £550,000 approx 3000 sq m / 3/4 acre w Planning permission for 3 individual detached luxury 5 bedroom houses Plot has 1970s bungalow and garage = £183 per sq m

New this week

6 Ancroft - Offers over £90,000

Single house plot in Dunbar 0.14 of an acre (575 sq m approx). Full planning permission granted for a detached, four bedroom house with garage, parking and garden. = Offers Over £156 per sq m

So, £156 to £217 per sq metre for 'standard' plots in town or village locations with planning consent, based on this (admittedly small) sampling

Does this help?

Edited by TTD

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These prices are ridiculously high.

Based on what? Do you have figures for any comparable land plots which have sold in the area?

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Does this help?

Alot TTD, thanks for the research you've done. I'll definitely start doing the same now as its quite interesting.

Although not East Lothian, I found a plot of land in South Queensferry - £240000 for 750sqm = £320 per sqm. Ouch!!!! :o

Also, Gullane, £295K for 700sqm = £421 per sqm :o:o:o:o:o

Thanks again TTD.

B

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Alot TTD, thanks for the research you've done. I'll definitely start doing the same now as its quite interesting.

Although not East Lothian, I found a plot of land in South Queensferry - £240000 for 750sqm = £320 per sqm. Ouch!!!! :o

Also, Gullane, £295K for 700sqm = £421 per sqm :o:o:o:o:o

Thanks again TTD.

B

Surveyors are the people to ask. They usually have someone who specialises in land.

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These prices are ridiculously high.

I would agree. It is all down to the end price of a house that could be built on the plot though. I think ?

Over 100k for a wee piece of mud in Dunbar ? That surely is mental. Even if planning consent is in place. In anyone's book.

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In determining the value of a plot of land, I imagine that the most important factor, by far, is the right/permission to erect houses. i.e. a 1,500 sq m lot with planning permission for 1 house (and not likely to be increased) is likely worth far less than a 1,000 sq m lot with planning permission for two dwellings.

Where I am, a 50 year old house (that can be torn down) sells for about $550k if it is on a 5,500 sf (450 sq m) lot and maybe $700k if it is on a 11,000 sf (900 sq m) lot. I suspect the situation is similar in Scotland. i.e. think of the price being a fixed price for the right to build a house, plus a variable price per sq m for the land.

In the example I gave, this would be:

$400k for the planning permission on a zero size lot (clearly this does not exist), with an additional

$27 per sq ft for the land.

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Based on what? Do you have figures for any comparable land plots which have sold in the area?

By that I mean that the cost of buying a plot of land is ridiculously high.

Presumably these plots have no services, water, elec., sewerage, broadband etc...

So what is the difference between a building plot and the corner of a field?

If the plot isn't used for building, then it's used in agriculture.

Does agricultural land come at a cost of:

"Also, Gullane, £295K for 700sqm = £421 per sqm "

So the price is £4 million per hectare!!!

Whereas the real cost is about 0.1% of that - for agricultural land

Unfortunately, planning restrictions mean that the "value" of a site with outline PP increases the value by XXX%.

(I hope I've explained myself :) )

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Presumably these plots have no services, water, elec., sewerage, broadband etc...

So what is the difference between a building plot and the corner of a field?

Presumably since they're within towns or villages, they have services 'adjacent', or whoever is selling the plot has connected the services to them - that'll vary.

The difference between these and agricultural land is that these plots are within towns or villages, so will be 'zoned' for building residential, whereas agri land won't - it'll be zoned for agri use, and anyone wishing to build on it will need to secure 'change of use' permission as well as building and planning consent. Change of use will be contrary to the local plan for the county.

If the plot isn't used for building, then it's used in agriculture.

Does agricultural land come at a cost of:

No it probably doesn't, for the reasons above (maybe others as well)

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Further to the Archerfield plots - the smallest of which is 0.42 acre, which I calc at around 1735 sq m.

Asking price £275,000, which makes that around £160 per sq m - makes it look cheap compared to the Inveresk plot!

However, without a change to the planning, you're committed to building a 5-bed house with double garage on the Archerfield plot.

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Further to the Archerfield plots - the smallest of which is 0.42 acre, which I calc at around 1735 sq m.

Asking price £275,000, which makes that around £160 per sq m - makes it look cheap compared to the Inveresk plot!

However, without a change to the planning, you're committed to building a 5-bed house with double garage on the Archerfield plot.

That wouldn't be too bad I suppose as my intention would be to build a 4-5 bedroom home anyway. £275K slightly out of my budget though and i'm not sure about the archerfield plots. Something has me looking at the whole thing suspiciously although cant quite put my finger on it!!! :huh:

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That wouldn't be too bad I suppose as my intention would be to build a 4-5 bedroom home anyway. £275K slightly out of my budget though and i'm not sure about the archerfield plots. Something has me looking at the whole thing suspiciously although cant quite put my finger on it!!! :huh:

I Was down there looking on Saturday, this place is a mess, and i agree with you there is something just not right, however once all these houses and the infrasrtucture is finally complete, and id guess circa 10 years from now, this place will be nice.

The golf complex is hoping to attract major tournaments, and you have the renaisaunce kicking off next door at 50k a pop for a debenture.

Its name your price now though for the land plot, id go to your lowest figure and deduct 50k, try them at that, id be surprised if your offer was not accepted.

It really cannot get any worse down there can it, it can only go in the one direction now.

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Commercial prop section of Scotsman today - in the Borders this time, 0.3 acre (1200 sq m) with planning consent for detached 3 bed bungalow - £100k, or roughly £83 per sq m

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Commercial prop section of Scotsman today - in the Borders this time, 0.3 acre (1200 sq m) with planning consent for detached 3 bed bungalow - £100k, or roughly £83 per sq m

can you dig up something else circa a million value, eith a 35 percent discount from vauation to purchase price, i got a buyer lined up,

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can you dig up something else circa a million value, eith a 35 percent discount from vauation to purchase price, i got a buyer lined up,

Can you go Foxtrot Oscar and dig something up yersel' ???

You seem to have as much time on your hands as I have, and you seem to be able to use Google as well as anyone else, and you claimed to have a contact with land in Dirleton previously, so.... I think you can manage on your own.

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Further to Archerfield, according to Zoopla, No. 38, a completed house, sold for £800,000.

If I recall correctly, it was originally advertised at something in the region of £1.2 million.....

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Further to the comparison of building land to agricultural land, I note that Rettie had two grazing plots at Ormiston, second of which is still marked Under Offer on their website - Offers Over £30,000 for 3.23 acres.

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