You might consider selling a barn on your land or converting it. However, it can sometimes be more difficult than selling a house or flat. There may be extra obstacles to overcome.
Many farms in the UK are made up of acres of land, a farmhouse, and additional buildings such as old barns. In some cases, it is possible to sell just a barn, typically to a developer who intends to convert the structure into a residential property to either rent or resell.
This guide outlines the various steps of the selling process and offers advice on increasing the chances of a quick sale with a decent profit.
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Deciding When to sell your barn?
The typical barn on farmland is not a residential property and is typically defined as a large building on a farm in which animals, hay, and grain are kept’ by the Cambridge Dictionary.
You may own this freehold farmhouse yet do not need the barn on your property. Selling the structure could bring you a good profit, which is why many property developers look for large barns in the UK that can be converted into residential or commercial buildings.
Understanding the process of selling a barn is important, as there are tax considerations, queries from buyers, and the choice of selling method to consider. This guide helps to simplify the process, providing information and tips on making the sale of your barn go as smoothly as possible.
Your potential tax liability when selling a barn
The financial aspect of selling any asset is always a significant consideration, such as how much profit you hope to make from the sale and also potential tax consequences.
- When selling many valuable assets such as houses, flats or barns, you may be expected to pay Capital Gains Tax if you make some profit from the sale. This tax usually applies to a certain amount of the profit made from the sale of the barn and not the final price paid by the buyer.
- It can become complicated when selling a barn, as it is usually part of a larger farm purchase, including land and farmhouse. This can make it difficult to determine the amount of Capital Gains Tax to be paid on the sale of the barn. To gain clarity in this situation, it is best to consult a financial expert.
- It is possible to reduce or even eliminate the amount of Capital Gains Tax to be paid. If the barn is part of a larger sale of the entire farm and can be considered part of your primary residence, you may not be liable to pay tax on the sale.
- Capital Gains Tax applies to other types of properties such as business premises, buy-to-let homes, land and inherited property, and a tax specialist can provide more details.
- When selling just the barn that cannot be seen as part of your primary residence, you will likely be liable for paying Capital Gains Tax, depending on the selling price. It is always advisable to prepare a budget for the sale of any property, taking into account potential tax charges.
- Capital Gains Tax does not apply when you make no profit from the sale of the barn – i.e. you sell at a loss. That said, it is not recommended to sell at a loss, and the aim should be to make a profit from the sale of any asset.
Questions buyers may have when you are selling your barn conversion
- What is the age of the barn? Knowing the exact age of the barn may not be the deciding factor for a buyer, but it is still important. If the barn has not been in the family for generations, it may be difficult to track down the exact date of its construction. Older barns might be too unstable to convert, and buyers may only be interested in the materials used to build them.
- What is the total size of the barn? If someone is interested in buying the barn to convert it into a property, they will likely have a minimum size in mind. If the barn is too small for their project, they may no longer be interested in purchasing it.
- What is the barn’s current condition? People who want to convert the barn to a residential or commercial property usually keep the exterior of the structure. If the barn is in very poor condition, such as close to collapsing, it may discourage potential buyers from making an offer. If they are looking to convert the building, they will want to avoid any structural problems.
The impact of planning permission on selling your barn
Property developers are usually the ones looking to buy a barn to either rent or sell, and planning permission can be a factor when you want to offload the structure.
If you are the owner of a property, be it a house, flat, or barn, and you intend to make major alterations to it, like changing its purpose or adding a large extension, then planning permission is essential. Without it, you could be met with hefty fines.
To obtain this approval, you have to apply to your local planning office and put forward the work you’d like to do with the barn. The cost of seeking planning permission varies from property to property, and for your barn, it will depend on its size, the scope of the project, and other individual factors.
It might be an expensive and long-winded process, but having the necessary permission could make the barn more attractive to developers.
They would be pleased to know that they don’t have to worry about getting permission to redevelop the structure should they decide to buy it.
Nevertheless, it isn’t required to acquire planning permission before attempting to sell a barn, and there are still ways to get a quick sale.
For instance, you could ask a fast buyer like Property Saviour to give you a fast and competitive offer for the barn.
Options to find a buyer when selling a barn
These are your possible options when you wish to sell your barn:
Attempt to sell a barn on your own
If you’re looking to save some money, you could try selling the barn without enlisting the help of a third party.
You’d be in charge of advertising the barn, setting up viewings for potential buyers, and handling any offers until the sale has been completed.
This process requires a lot of time, money, and effort, so it’s only recommended if you have some experience with selling barns or other properties or if you know someone with that knowledge who is willing to lend a hand for free.
Using the services of an estate agent
If you’re looking for help selling your barn, an estate agent can be a great asset. They’ll create a listing that includes photos of the property and a description, then advertise it in local newspapers, online and at their office.
They’ll also handle viewings for potential buyers and manage any offers that come in.
Trying your luck with an auctioneer
When you use an auctioneer to sell your barn, they’ll take care of most of the tasks. To start, they’ll create the listing and promote it, hoping to attract buyers. They’ll also hold the auction.
However, when auctioning a property don’t forget that you will have all the upfront legal and entry fees to pay for. There’s no guarantee that your barn will sell.
Selling a barn to a fast property buyer
Your fourth option for selling your barn is to get in touch with a quick buyer like Property Saviour.
We have the financial resources to make immediate purchases of barns, houses, flats and various other properties without needing to go through the conventional and often lengthy mortgage approval process for securing the funds to complete the sale.
Sell Your Barn To Us
We’ll buy your barn for cash, giving you certainty and speed. Here’s why sellers trust us:
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.