Land Banking Schemes - Buying Land or Property claimed to have development potential by Ford Banks Irwin Solicitors - The Property Lawyers in Manchester
Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLYLand Banking Schemes - Buying Land or Property claimed to have development potential
All clients should seek professional independent advice from Property Solicitors or Conveyancers before investing in any Land Banking Investment schemes that are often advertised as offering big returns on investments in Property.
Many clients are persuaded to hand over thousands of pounds for Land or Property that has little or no chance of ever being developed.
What is 'Land Banking' and how do such schemes work?
Plots of Land are offered for sale, sometimes with the claim that there will be huge returns if planning permission is obtained for housing or other development. The Land is often located in 'green belt' or undeveloped areas often protected from development by Planning Law. Or it could be agricultural Land where no development is ever likely to be permitted.
Because the Land is unlikely to be developed, it is bought at a low price and divided into small plots. The plots are then offered for sale, often online, to members of the public on the basis that when future planning permission is secured for the site for housing the plots will be more valuable. The plots may be offered for sale to both domestic and overseas buyers.
Members of the public may be misled about the prospects of obtaining planning permission or redevelopment and this in turn may lead them into thinking that they will have the opportunity to sell the plots at even greater profit to developers with planning permission.
Representations:
Those operating Land Banking schemes often claim that they have well known banks, other lending institutions and established developers as their partners in the schemes when this is not the case. Members of the public have also been led to believe that planning permission has already been granted. In all cases such as these it is important to obtain independent professional advice from Property Solicitors or Conveyancers.
Regulation of Land Banking Schemes:
'Land Banking' is usually unregulated. This means that the money invested by members of the public is not protected if things go wrong.
Does it affect only customers in England and Wales?
Such schemes have targeted members of the public at home and abroad who have been offered the opportunity to invest in Land in England and Wales. Sometimes those operating such schemes are based abroad.
What if the Land has been registered?
Land Registry will register the transfer of the land / plots provided applications to register title are in order. Land Registry would not question whether the land / plots had been acquired under such schemes. It is for you to obtain professional advice from a Property Solicitor or Conveyancer before buying such plots.
What can you do?
Land Registry is responsible for maintaining the register of title to Land in England and Wales and for the registration of such Land. Land Registry has no direct involvement in such schemes nor is it able to take any steps to prevent such schemes. The decision to participate in the schemes rests entirely with individual members of the public.
If you are offered an opportunity to acquire Land or to invest in such schemes you should question the information you are given and seek professional advice.
(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)
Property Law Solicitors and Conveyancers should be able to advice you on all aspects of buying a plot of land in a Land Banking scheme. It is important to choose your own Solicitor and not rely on an adviser chosen by the Seller or Seller's Estate Agent.
For any further information please contact Ford Banks Irwin Solicitors.