Henlowland


Henlowland - Land Programme

I just wanted to highlight the likelihood of http://www.henlowland.com not being a particularly a sensible investment (largely based on the track record of those apparently involved), and to say 'do your own research', as I always do:

# Blind everyone with how much land is worth (and we're referring to Henlowland here), how many new houses are needed and they don't make land anymore etc
# Approach a farmer who has land near a built up area
# Bid him say double or even triple what his land parcel (say 30 acres) is worth
# The divide into subplots and get a lot of paperwork to support that new houses are needed in the areas etc
# Then sell these plots to gullible investors who think that in 5-10 years time planning permission is sure to be granted
# The land however because it's deemed as agricultural or outside the planning remit (points like this) is not likely to get planning even with 50 years

However on Henlowland

Consider the following points:

The cost of farmland per acre (as opposed to a much smaller building plot) is very low.
The cost of any land with outline planning permission is very high.
The fact that all that is actually being sold is a *time limited option* to buy the land.

Someone could sell me options on anything - they don't have to own it. I can go to a futures and options market today, and trade an interest in practically any class of asset, without ever seeing, or intending to see that asset.

I can do that because the market is regulated, open, competitive and supports a secondary market interest. I doubt that Henlowland satisfies any one of these, let alone all.

If it was Grey and Hard, I'd say someone was trying to sell me the Brooklyn Bridge. The fact that Henlowland is Green and Soft, doesn't allay my suspicions one bit.

Why would someone who you have never heard of (and advertising on the internet) offer you a perfect stranger the potential for unbelievable 'windfall profits' of 1000's %?

Answer, they wouldn't because if Henlowland was really worth anything then people at the bottom of the investment food-chain wouldn't even come close to being able to participate. .

For anyone thinking of buying a plot of Henlowland they'd be well advised to spend £500-£1000 on a proper survery first by a local reputable land agent. That way the only money you'd lose would be the land agents fee because it doesn't take a genius to work out what their report will tell you.

I like to try to find something positive in most things, but when it comes to the ordinary man in the street getting hold of land in the Uk on which to turn a profit...it's bleak...a veritable desert...with virtual certainty most anything worth having will be got by builders either major or well entrenched locals before you even get to hear about it .... about the only rose on the horizon is trying to find a plot with something already on that is not maximising the economic potential of the plot....say a bungalow that could get planning for a sizeable extension... or a house with acreage beyond it's 'needs' that might get planning... all I have to offer.

Hennlowland is clearly a case of 'buyer beware'.

The first port of call would be the local council to examine the 'local plan' which is in force (or and proposed local plan at consultation stage) in order to establish current designations of land use. Looking at the picture of 'Henlow Grange' it looks like a pretty nice place. Houses like that are often in areas designated as either "Green Belt" , "Area of outstanding natural beauty" or "Conservation Area" or a mixture of all three. If this is the case then planning consents are a lot less likely. It would also be useful to know how near any 'new towns' the estate is. Obviously if it is located in the middle of nowhere then again the chances of a change of planning consent or land designations are unlikely.

With that in mind you have to consider who is 'offering' the land options for sale. Obviously if they genuinely thought that the land was going to be worth £1m per acre in the next few years then they wouldn't be selling it off cheaply would they. Moreover, if they were very sure that the land wasn't going to rise in value that much then what better way to make money from it. In the meantime they'd still own the land and could of course use it for any purpose they saw fit (unless the contract deemed otherwise). In effect it is a 'Covered Call' based on land as apposed to a share or future.

There are a further number of considerations such as rights of access if you were to exercise your right to buy the land. No point having a plot of land in the middle of other plots of land if you can't access it unless you have a helicopter.

I went to the property show at Earls Court last week and there were similar companies trying to sell fields divided up into potential building plots,the questions i asked them were Why are you selling to Joe public at a so called cheap price now if you are so sure of such a good return in the future? Answers; Cashflow,hedging their bets.

What track record do you have of similar successful ventures?

Answers; None

My conclusion was to stay well clear!

Please note: this is my own personal opinion reflected here, and does not necessarily represent the view of the general public. All information posted on this article was culled from my own research and my own personal opinion, which anyone is entitled to disagree with.. bla..bla..bla..you know the stuff