Advice on selling or holding please

mvron

Hi, I inherited sone mixed land (grazing and bog) in quite a rural area from my dad a few years ago and am not sure how to get the best from it. Dad had part of it let out and I've kept that arrangement in place since but now am wondering if we should sell it and invest the money elsewhere (paying off the mortgage on the house etc). We're not getting much for letting it out and wel'll never farm it as we live quite a distance away. Would it be a good time to sell land and if so, what time of the year would be best? I know less than nothing about managing land as dad never involved us in it and died suddenly so could really do with a bit of advice. Thanks in advance.

Base price

mvron wrote: »

Hi, I inherited sone mixed land (grazing and bog) in quite a rural area from my dad a few years ago and am not sure how to get the best from it. Dad had part of it let out and I've kept that arrangement in place since but now am wondering if we should sell it and invest the money elsewhere (paying off the mortgage on the house etc). We're not getting much for letting it out and wel'll never farm it as we live quite a distance away. Would it be a good time to sell land and if so, what time of the year would be best? I know less than nothing about managing land as dad never involved us in it and died suddenly so could really do with a bit of advice. Thanks in advance.

Sorry for your loss.
Without giving too much detail. What county is the land in and what acreage. Is it near a town/village. Is the bog a bank or just boggy land.
Others on here can advise you on what CGT you may have to pay when you sell it.

mvron

Thanks for taking the time to reply! The land is in north Tipperary, about 50 arable acres, 10 acres grazing rights and about 10 acres of bog where we used to cut turf (although with the turf cutting ban I'm not sure if we can cut there anymore) . A portion of the arable land is let out and everything else is just sitting there.

Farmer Pudsey

First of all you have to find out if the sale will incurr inheritance tax. Maybe you have paid it already. If it will you may be better off holding until 10 year rule kicks in. If you valued it low at the inheritance stage you will pay 33% tax on all value over this threshold value. Speak to an accountant first.

If you decide to hold it I cannot understand why it is not returning an income of 10k+/year. If you longterm lease this is tax fee. That is worth about 17K in taxable income. Over 10 years you could pay over 90K off your mortgage and still own the land. I am really suprised that only part is rented.

Muckit

Excellent advice puds. OP you need to put in a little bit of effort. You have an asset, you need to know how to get the most out of it. Putting a for sale sign on it might seem like the easiest option but it might be far from the best option.

You need to get all that land leased out (long term) asap.land needs to be used or itgroundgo backwards and devalue rappa. Also as puds has said you could be making a great annual return (potentially tax free!!) seeking the right advice from an accountant and estate agent.

You have a little bit of research to do now. Go do it this week. Don't procrastinate.

Call a local estate agent that does land lettings and get them out to walk the ground with you and they will give you an idea of how much you could get for it/per annum. Don'settle with one lad. Get another out and another if you like. Weigh it all up then.

Puds is right but double check with an accountant what the tax situation would be for you personally. Why sell an asset if you don't have to? It could still do what you want it to do (pay off mortgage) and you still have it to keep making you easy money. Sell it and it might leave you a few pound after a nice tax bill.... and it'll only do it the once.

cute geoge

Is it land or is it ground
The land is worth 10k+ a acre
Ground is only worth what you can get for it
I have some ground rented and honestly I should be almost paid to take it
I rent it because I have high stocking rate but the value I knock out of it is minimal by the time my effords are accounted for

Dawggone

cute geoge wrote: »

Is it land or is it ground
The land is worth 10k+ a acre
Ground is only worth what you can get for it
I have some ground rented and honestly I should be almost paid to take it
I rent it because I have high stocking rate but the value I knock out of it is minimal by the time my effords are accounted for

I like that terminology "ground"!
In the UK they call it "space outside".

Farmer Pudsey

OP said 50ish was arable. I woiuld presume it was pan not ground or space outside. 10 .acres of grazing rights and bog would get you into GLAS easy enough on two different blocks might get youynear the 5K per year.

Would expected that 70 acres like that would make 10K/year on all lease.