Land Promotion & Option Agreements
Promotion or option agreements are used for land that has planning potential but where the landowner does not want to either take on the risk or the cost of the planning application. In both cases, if successful the landowner will still receive the majority of the land’s value but if the application fails they have not lost any money.
In recent years land promotion agreements, also known as planning promotion agreements, have become an increasingly popular option for landowners. Typically this is where a Promoter agrees to attempt to secure planning consent on a piece of land and then market it for sale on the open market in exchange for a percentage of the final sale figure.
The Land Agency approach promotion agreements as a genuine partnership with both parties seeking the same outcome. We are happy to consider an agreement on suitable parcels of land.
If landowner would prefer agreeing a fixed price sale then an option agreement is the best route. The option to purchase the land is generally executed as soon as planning consent is confirmed, with the sale price not changing regardless of variables such as how many dwellings have been approved, house prices at the time or the conditions attached to the planning consent.
The details on any agreement will be dependent on the potential value of the land and the level of planning risk and cost involved. Securing planning permission can be costly and take a long time, so on average sales agreements 3-5 years and during this time the landowner cannot sell the land to any other party.
Please contact us if you own a piece of land and would like an independent, no cost assessment on its potential value and if it may be suitable for a subject to planning agreement.
A subject to planning sales agreement offers a landowner the opportunity to maximise the value of their land with no upfront costs.
A third party covers the costs of executing a planning application in exchange for either an agreed percentage of the sales value or a fixed price if successful.
If no consent is achieved within an agreed timeframe, the landowner has spent nothing and retains ownership of the land.
Benefits of entering into a sales agreement with The Land Agency
We pay all of the costs associated with securing planning permission. If no consent is achieved, the landowner has spent nothing and retains ownership of the land.
The agreement is for a fixed period of time and we are contracted to use reasonable endeavours to secure planning permission and a successful sale as quickly as possible.
We maximise the value of the land by exploring all marketing and sales options.
With a promotion agreement the land is promoted on the open market for a minimum period of time, ensuring that its full sales value is realised.
On relevant sites the land may be sold as individual plots to self-build purchasers in order to maximise the total land value.
The landowner is informed straight away on all offers for the land and thorough due diligence is carried out on all potential buyers.
To discuss your land please complete the form below.