Back to The Successful Sales Strategy
Increasingly potential purchasers are seeking businesses with future development potential and with an effective estates plan in place. Some estate/property issues to consider are outlined below:
- Is there potential to extend or develop within the grounds? Even obtaining planning permission for a modest extension may be worthwhile.
- Consult your advisers to ensure that any proposed development meets current market demands e.g. would extra care units attract a greater value than an extension to the care home?
- Consider the impact of listing, tree preservations orders or conservation area designation upon any proposed development.
- Instruct your solicitor to prepare a report on title. Any restrictive covenants, rights of way, or easements may affect the sale price achievable.
- Prepare an estate plan and timescale for implementation; this should include any outstanding registration requirements/recommendations.
- What is the allocation of the property/site within the Local Plan or Unitary Development plan? Is the plan under review? If so, is it appropriate to make representations to change the current allocation?
- Ensure that any existing planning permissions are renewed at the appropriate time. Local planning policy may have been revised since the original permission was granted therefore making it much more difficult to secure permission if the original permission is allowed to lapse.
However, a note of caution, if you have a good sized site with potential for development but are unsure as to whether permission would be granted, it may be more beneficial to sell the property with hope value (which will increase realisation) rather than selling after planning has been refused and hence little potential remains for further development.
Part Four - Grooming the Business