Considerations When Buying Farmland and Buildings

Your solicitor will check that the property can be used as and has been built in accordance with the correct planning designations.

Your solicitor might check what the current permitted use of the property is and whether a change of use application has been made if this does not suit the future or intended use of the land.

For example, if you are buying a property where land is still deemed to be in agricultural use, then use as a residential property could be in breach of these agricultural planning designations.

Perhaps your intention to use the additional land as a smallholding or new hobby might not be permitted under its current planning use, so you should make sure your solicitor is aware of what you intend to do with the land at an early stage.

Lots of farmland has been under the same family for many years.

When this is sold off in parts, there may be issues with locating the deeds if the land is unregistered, as the land may not have changed hands for a long time.

This can be an issue with registration at the land registry as there may be crucial information that your solicitor will need to check located within these documents.

It may also not be clear who really owns the land as there may not be a paper trail as to how ownership has been passed on over the years, especially where land has been passed down through multiple generations.

The title that the land registry grants on your purchase may not be an “absolute” title, which is the best class of title available.

Absolute Title means that no one can challenge the ownership of your property. However, a lower class of title, such as a “possessory” title, means that there could be doubts as to the true ownership and documentary evidence provided.

Deeds may also contain restrictive covenants as to the use of the land. Without knowing what these are, it could be that the land is being used in breach of one of these covenants.

It is not uncommon that in certain deeds for agricultural land, there are restrictions requiring that land be used solely for agricultural purposes, in which case you may need to obtain a release of the covenant if you are planning to keep the land as residential.

A release of a covenant may come at a price.

Buying a beautiful new barn conversion, especially if it is from a smaller developer who can make the property bespoke to your wishes, can be a dream for many.

Your solicitor will need to make sure that the builders are not only complying with planning regulations and building control but that there is a suitable new build or structural warranty in place which provides you with adequate protection.

Again, if you are buying with a lender, certain smaller warranty providers are not always acceptable.

A structural warranty is an important form of cover in case you have any structural defects at the property.

Smaller warranty providers are less likely to be approved by a lender as there is a higher chance that the provider could go into administration.