Land use and diversification - L3 Flashcards
How have you provided reasoned advice on diversification?
To ensure the advice I provide is reasoned I will conducted market research, analysis of financial information available, review of locals plans and the policies on planning in the area. I will consult with my client about their requirements specifically for the site and overall goals before providing my advice to them
How have you managed land use?
Land use for my client is specifically related to flood risk management works, but this is not to say all the assets we hold are directly flood risk. Land use across the EA can range from land used for carparks, for commercial units, grazing and arable land and its understanding how this use of the land interlinks with the surrounding environment.
[insert example]
How have you advised on the more complex aspects of diversification?
Haven’t been involved in a more complex diversification project, due to the nature of my clients land holdings and the limitations the HM treasury rules on spending. However if i was too I would ensure my client was suitably briefed whether by myself or experts on matters including tax implications, multi-use strategies, financial appraisals on options.
How have you managed diversification projects?
The small scale examples I have overseen I have been involved in the initial budgeting of options, what the timeline for this may be, and understanding those parties who need to be engaged with.
How have you advised on the valuation, progress and management of a diversification project.
I have advised on the valuation of sites where I have identified a possible change of use and in order to advise my client undertaken simple valuation calculations to determine feasibility.
Land purchase Kent - Describe the land
The land was currently being used as grazing land, with limited fencing around it, a tributary ran to west and east boundary, a railway line to the south and then creek to the north and embankment
Land purchase Kent - How did you determine the uplift in value?
my client was looking to purchase the site where an overage clause was included in the particulars. I advised my client on the current uncertainty of the use of land for non-agricultural purposes e.g. BNG or renewable energy schemes that landowners are not wanting to enter into now for taxation purposes so the uplift in value is being secured by an overage clause. I advised my client, should they not end up using the site for their intended purpose and choose to then use it for BNG this may attract a value, however at the time markets were unstable on bng units and the EA had not received legal counsel on whether we would be able to sell units. this is still in review.
Land purchase Kent - What was your advice as to the overage liability?
I advised my client on the overage wording focussing on the trigger ‘non-agricultural use’ and thus any move away from the current land and the generation in value on sale away from agriculture is reserved for a period of 25 years. I explained to my client the overage is protecting the seller from the loss of future gain should this realise.
Land purchase Kent - On what basis was the non-agricultural condition being breached?
These would be breached if my client converts the land as intended into freshwater habitat and and then sold on as this, may attract a higher value and with the implementation of BNG my client referenced should not all the land be used they could use it for BNG units, again a non-agricultural use.
Land use review grassland parking - How did you verify the opinion of development land value?
several steps to verify my opinion which included:
1. Comparable sales, recent and adjusting
2. existing planning permissions
3. undertaking residual land valuations (GDV minus the costs)
4. market trends and interest
5. expert opinion
Land use review grassland parking - What objectives would selling the land meet?
the land is no longer required from an operational perspective and as such following HM treasury guidance and defra policy on functional land use disposal its meeting my client requirements under that policy perspective.
Land use review grassland parking - Why was an overage appropriate?
As a public body responsible for the use of public money, it would not be in our interest or nature to instruct developers to produce planning development options on our land. We are not a developer and as such the use of an overage clause allows my client to gain a proportion of the uplift in value of the site.
Campsite - How did you identify the opportunity?
Recently moved teams and part of the review of clients portfolios, conversations on boaters and client around nearby places for people to visit and stay and got talking about the grass outside the waterways office house and whether this could be used for camping.
Campsite - Were any other options considered, given the existing facilities on-site?
the option of permanent glamping huts but given the small size nature of the site, camping would be more appropriate and limited planning requirements.
Campsite - How did you value the site and advice on an appropriate market rent?
I reviewed the nightly rates of campsites in the area of similar size, similar facilities and opening times. I researched the maximum number of days a campsite could be open before applying for planning permission which was 60 days and applied the number of days to to the number of spaces my client was happy with. I then calculated 30% of the profits which came to £1,200 per annum.
