Dividing farm land into subsections/parcels

O

oraman

Guest
Hello, I inherited a farm in 2003. I am considering using the farm land as collateral for purchasing property. The reason I am writing this is I am considering splitting the land up into parcels(not sure if this is the correct term). So instead of using the entire farm I can use lets say parcel number 5 and 6 as collateral. This offers me some safety. I would like to know are there any implications I should be aware of. Tax etc etc. I am going to talk with my solicitor on this also , but I thought here would be a good start. Many heads is better than one.

Thank you all.
 
Where is your farm...land has been appreciating faster than property in many areas...you are about to put many costs on yourself...think hard before jumping
 
Thank you for your response.

The land in in Galway county. Could you please explain more to me about "putting many costs on myself".

What should I be considering? Thank you for your time.
 
Hi,

Are you considering selling some of the land as sites or merely using each parcel as collateral against a loan?

I know that land in Galway is very much sought after at the moment (depending on location). Where abouts in Galway are you as I have prices for land in most areas.
 
Thank you for responding. Land is in Corofin.

Using each parcel as collateral against a loan was or is my intended use.

What is your opinion on this?
 
Like a previous poster said, the price of land is appreciating fast in many areas.

For Galway, I have seen the following
.5 acre site with FPP and no restrictions in Kilcolgan for over EUR200,000
.5 acre site in Inverin for EUR85,000 subject to planning
.5 acres site in Gort subject to planning for EUR95,000
1 acre site with FPP in Kinvara for EUR300,000
1 acre site with Outline Planning Permission for EUR175,000
(Have plenty of more samples if needs be)

I think that if you have land that you are willing to sell, I would be looking into perhaps getting planning on the land (be it Outline or Full Planning) and then selling it. From speaking with agents in Galway, there is a huge demand for sites in certain areas there. There are issues with local needs etc. that you would need to tease out. I'd suggest perhaps meeting with the planners at the council before you bother going too far with this..
 
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