Selling land to the forestry company

Jimbob91

So i had a man from the forestry company out looking at 12 acres of enclosed ground for planting. I want to SELL this ground. He seems happy enough with access and the ground itself. He reckons a guide price of 4-4200k an acre. I gave him permission to start the process of getting the land approved.

If an investor buys this land and doesnt have use for the entitlements, can i still use them even when the land is sold?

Bar solicitors, are there any hidden costs involved?and i presume payment should be made to me in full before a sod is turned?

Does anyone have any dealings with the forestry company?

L.Jenkins

Have requested the moderator of this forum move your thread to the Farming and Forestry forums, where you'll get a better response to your query.

Angron

Moved to F&F as it's more likely you'll get an informed answer here.

sea12

Angron wrote: »

Moved to F&F as it's more likely you'll get an informed answer here.

Why are you selling it for. At that price would you not be better to plant it yourself. Get the grants and the price of thinning S and fell. At the end you still have the land.

blue5000

If you sell the land you'd probably be liable to capital gains tax as well, if you plant it yourself anything you make out of it is tax free.

Good loser

You can't use the entitlements if you sell the land.

If you plant yourself I'd say you can.

You probably can sell the entitlements as well as the land - separately.

Are you sure the sale price does not include the entitlements?

farisfat

Jimbob91 wrote: »

So i had a man from the forestry company out looking at 12 acres of enclosed ground for planting. I want to SELL this ground. He seems happy enough with access and the ground itself. He reckons a guide price of 4-4200k an acre. I gave him permission to start the process of getting the land approved.

If an investor buys this land and doesnt have use for the entitlements, can i still use them even when the land is sold?

Bar solicitors, are there any hidden costs involved?and i presume payment should be made to me in full before a sod is turned?

Does anyone have any dealings with the forestry company?

Sounds like very cheap land did you talk to local auctioneer he might have someone willing to pay well above that price.

Jimbob91

farisfat wrote: »

Sounds like very cheap land did you talk to local auctioneer he might have someone willing to pay well above that price.

Auctioneer priced it at forestry prices.ie 4k an acre. Looking at buying a house so it would be contributing to that. If an investor with no farming background bought the land who keeps the entitlements?can the new owner sell them or do I hold on to them?

farisfat

Jimbob91 wrote: »

Auctioneer priced it at forestry prices.ie 4k an acre. Looking at buying a house so it would be contributing to that. If an investor with no farming background bought the land who keeps the entitlements?can the new owner sell them or do I hold on to them?

Not up to speed on entitlements.
I'd say u could sell yourself separate.

Bass Reeves

OP if you sell it is gone once off lump sum of 50k less expenses and tax. Not sure how you CGT might work out depending on when and from whom you inherited it from. From a patent unlikely you will have a serious liability from an uncle or aunt I think you may well have valued it at or near that exemption. We will ignore that exemption but after auctioneers fees and solicitors fees you may clear 45-47k before Tax issues I am making a few guesses but around that.

Sale of SFpP will yield very little and it is unlikely you can claim it unless you rent land and not much profit from that. If you plant it yourself and we will assumes that all planting and fencing grants are used up in that process. Depending on what you plant 10%diverse will yield 2.4K\ year and Alder ( do not know why more do not plant it ) will yield 2.7/ year. We will assume that the SFP is Worth about 250/ Ha that will add another 1150-1200/ Ha giving you an income of 3.6-3.9k/ year of which the forestry is tax free. In reality after expenses of insurance you will have minimal tax issues and about 3k/ year into your back pocket after expenses and tax.

That is equivalent to about 1/3 of the repayments on a 150K mortgage over 25 years. At the end of the 15 yes premiums the forestry land is still usually worth about the price of. Bare land so you can have you cake and eat it

Jimbob91

Bass Reeves wrote: »

OP if you sell it is gone once off lump sum of 50k less expenses and tax. Not sure how you CGT might work out depending on when and from whom you inherited it from. From a patent unlikely you will have a serious liability from an uncle or aunt I think you may well have valued it at or near that exemption. We will ignore that exemption but after auctioneers fees and solicitors fees you may clear 45-47k before Tax issues I am making a few guesses but around that.

Sale of SFpP will yield very little and it is unlikely you can claim it unless you rent land and not much profit from that. If you plant it yourself and we will assumes that all planting and fencing grants are used up in that process. Depending on what you plant 10%diverse will yield 2.4K\ year and Alder ( do not know why more do not plant it ) will yield 2.7/ year. We will assume that the SFP is Worth about 250/ Ha that will add another 1150-1200/ Ha giving you an income of 3.6-3.9k/ year of which the forestry is tax free. In reality after expenses of insurance you will have minimal tax issues and about 3k/ year into your back pocket after expenses and tax.

That is equivalent to about 1/3 of the repayments on a 150K mortgage over 25 years. At the end of the 15 yes premiums the forestry land is still usually worth about the price of. Bare land so you can have you cake and eat it

Thanks for that.I inherited it feom my father and actively farm it .doin the green cert now to get the lower rate of stamp duty as well. What is an acre of forestry worth when its mature in 20 years time?

Bass Reeves

I think it usually details at about the value of forestry land until it gets within a few years of clearfell. Even then it will be discounted for buyer to achieve a margin