Woodland Valuation

[renewablejohn]

Went to a Pugh & Co auction last Thursday and 11 acres of woodland for sale made 25k. Good price you may think but looking in the legal pack the actual timber on the site is owned by the local council and their is a woodland management scheme in place until 2028 restricting the harvesting of timber whilst still having to maintain the fences etc.

 

Is this a sign of woodland inflation or just somebody who did not read the legal pack. If they did read the legal pack then what loophole did they find to create a profit out of the site.

[Kev Stephenson]

Bought for shooting ???

[slasherscot]

seems like the council have sold the ground to raise capital while keeping the wood as it is for the next 18 years.........at over £2000 per acre i dont see it as commercial enterprise timber wise........maybe new owner hoping to get house on it in the future.Small woodlands seem to go for well over their real commercial value.

[nepia]

Could be a hundred explanations. Some people near here bought that amount - 11 acres - purely to ensure that no building took place. Money wasn't a consideration.

[Catweazle]

It could be a hobby owner who just wants to walk in the woods, or the owner of adjoining open land who wants a wood to raise game birds for formal shoots, or even a paintball club.

 

The prices have been rising steadily since 2005, driven I think by fears of fuel and food supply problems. Small plots of arable land are also going up sharply as the grow-your-own market expands faster than the land supply.

 

Apparently landowners are not selling, expecting improved subsidies soon, and frankly lacking anywhere safer to put their money.

[Catweazle]

........at over £2000 per acre i dont see it as commercial enterprise timber wise........maybe new owner hoping to get house on it in the future.Small woodlands seem to go for well over their real commercial value.

 

If the new owner could make £625 a year from it then that's 2.5%, which is more than you'll get from your average savings account. More importantly, though, is what could happen to your ££££ in the bank. If the £ crashes or high inflation arrives then at least the land should hold some value. There are also tax advantages to owning commercial ( as opposed to amenity ) woodland, inheritance tax is zero, there is no tax to pay on unimproved woodland produce, and you can offset operating losses against operating profits from another source.

 

I bought woodland in early 2006 because I wanted something solid to invest some money into, commodities market would probably have been better, but woodland is safe and solid, and your investment literally grows every year. I have a woodfired heating system too, which is a bonus.

[John Hughes]

" Buy land, theyr'e not making it anymore"

I don't think most people who buy woodland expect a return on their money until they come to sell. Most buy to have a bolt hole in the countryside.

[renewablejohn]

Bought for shooting ???

 

STS

 

Main pennine bridalway goes right through the site so I think it would be useless for shooting

[renewablejohn]

If the new owner could make £625 a year from it then that's 2.5%, which is more than you'll get from your average savings account. More importantly, though, is what could happen to your ££££ in the bank. If the £ crashes or high inflation arrives then at least the land should hold some value. There are also tax advantages to owning commercial ( as opposed to amenity ) woodland, inheritance tax is zero, there is no tax to pay on unimproved woodland produce, and you can offset operating losses against operating profits from another source.

 

I bought woodland in early 2006 because I wanted something solid to invest some money into, commodities market would probably have been better, but woodland is safe and solid, and your investment literally grows every year. I have a woodfired heating system too, which is a bonus.

 

I understand the tax breaks for woodland but you need to own the timber and in this case they have bought the land but the timber belongs to the local authority. As you say it might be a paintball type activity but surely you would require planning permission for that. With a major horse bridalway going through the site this type of activity must surely be refused.

[renewablejohn]

seems like the council have sold the ground to raise capital while keeping the wood as it is for the next 18 years.........at over £2000 per acre i dont see it as commercial enterprise timber wise........maybe new owner hoping to get house on it in the future.Small woodlands seem to go for well over their real commercial value.

 

Its United Utilities that have sold the land with the trees still owned by the council.