Land value - oil/gas pipeline

Moony8

We are looking at a piece of paddock land in a neighbouring village.

The guide price is £15-£20k per acre which seems high based on similar land which is currently advertised and pieces we know have sold recently (£10-£12k an acre seems more realistic)

However a complication is that the land appears to have an oil/gas line running across it - denoted by pipeline markers on two of it's borders.

This will obviously mean there are rights of access and wayleaves on the property - but we are also wondering what this does to the value of the land.

We have an idea of what we would be prepared to pay for it based on other land prices in the area (none of which have had pipelines) - and the presence of the pipeline does not worry us per-se, but we are a bit nervous about going in with a 'market rate' bid if the pipeline is likely to have a significant negative effect on the market value land.

Thanks

[Deleted User]

Land is really hard to value and when I bought mine the land agent offered 2 pieces of advice,

offer a random sum ( mine was sealed bids and apparently everyone usually offfers a round sum )

and secondly offer what it means to you ie if they rang and told me I was out bid would I be desolate ? If not offer a realistic price taking into account the pipes and see how you go.

Smaller acerage often goes for larger sums.

I would be wary of pipelines with access for other reasons aswell

How much land is there, pipes on a 2 acre plot is intrusive but on a 20 acre not so much

It may be harder to sell on with the uncertainty if access is unrestricted,

It may be harder to get planning / build where you want ( I dont know if there is an amount you have to leave free of development around the pipes.

What happens if there is a leak of gas etc etc, it may be a hassle to report it , and wait for repair etc

Is it going to auction as they can't sell it on the open market.

Pesonally I'd want more information.

Robin9

Smaller pieces of land will have a premium compared with a 25 hectare field.

The pipeline will be subject to an easement and stringent restrictions regarding any form of development.

Moony8

I understand large plots go for commensurately less per acre than smaller plots - so it's unrealistic to compare 25 hectares with a small paddock.

The land we are looking at is a little over 1.5 acres. The plots I have been comparing prices with are around 4-6 acres. The pipeline bisects the field by about 1/3rd and runs to about 110m across.

We aren't looking to develop the land - it will be used mostly as a paddock and for somewhere to pitch my telescope from time to time.

[Deleted User]

TBH its a small parcel of land and if you are happy with things as they stand make an offer on what you are happy to pay for it.

No-one here can tell you what to offer as we dont have enough information and nor have we seeen the site eg an acre in my part of the world would be worth in excess of £50k but up North significantly less , it may have unsighly massive electric pylons next door, or sewage plant, so many variables.

In answer to your question I personally think it would be worth less with pipes than without so wouldnt offer market value unless it has other huge redeeming factors.

Moony8

It is what it is. A basic 1.5 acre grass field with road access and trees/hedges around the border.

It fronts roads on two sides - and fields to the other two. Rural location, no heavy industry, sewage plants, pylons etc.

Ozzuk

I know you don't plan on developing the land (but things change), but do keep in mind there will be restrictions imposed because of the pipes - it was mentioned on another forum things like no earth movement within 6 meters, and restrictions on anything you can build on top of it. Worth checking the terms assigned to your land.