Frequently Asked Questions
Understanding Option Agreements
What is an option agreement?
An Option Agreement is a legally binding contract between a landowner and a land buyer. It gives the buyer the option to purchase your land within a set timeframe, usually subject to planning approval.
Will the offer be agreed before the Option Agreement is signed?
Yes. The offer price is agreed in advance and fixed in the Option Agreement.
Can I set conditions before signing?
Absolutely. You can discuss and include any conditions you require before signing.
Can I see the final Option Agreement before signing?
Yes. We encourage you to review it as many times as you need, with your solicitor, to feel completely comfortable.
Do I need a solicitor?
Yes. You will need a commercial solicitor familiar with Option Agreements. We can provide recommendations if required.
What is a Promotion Agreement?
A Promotion Agreement is a legally binding arrangement between a landowner and a land promoter,
such as an experienced property investor or developer. Under this agreement, the promoter undertakes
the planning process at their own cost and risk, securing planning permission and subsequently
marketing the land for sale on the open market. Once sold, the net proceeds are shared between the
landowner and the promoter in accordance with an agreed percentage set out in advance.
How Long Will the Promotion Agreement Last?
This is dependent on several variables, for example, whether the site lies within the council’s adopted settlement boundary or if the site has previously been put forward for Strategic Housing Land Availability Assessment (SHLAA). It will therefore be decided on a site-by-site basis. Typically, though, we will enter into a 36-month promotion Agreement with you, with a 24-month extension option.
Offers and Process
What will you be able to offer me?
After a site visit, our team of specialist planners and architects will draft a proposed scheme. We will then discuss our offer with you — usually within 4-6 weeks, we may also ask for your expectations beforehand to guide the process.
Will the initial offer price change?
No. The offer is fixed in the Option Agreement and will remain the same at the final point of sale.
Do you offer cash/outright purchases?
Typically, we use Option Agreements rather than outright cash purchases, as this allows us to manage the planning process carefully and reduce risk.
How long does the Option Agreement last?
Typically 12 months, with an option to extend for 6 months if resubmission of planning or unforeseen issues arise.
Could the deal be completed in less than 12 months?
Yes. While 12 months is a conservative estimate, we often aim to achieve planning approval sooner and will keep you updated throughout the process.
Planning and Development
When will the planning application be submitted?
We aim to submit your planning application within 4 months of signing the Option Agreement.
How long will the council take to decide?
Typically 12–16 weeks, though this can vary depending on the local authority.
When will the land be sold to a developer?
We start marketing your land to our network of developers during the planning process, aiming to secure a buyer as soon as planning is granted.
If I’m selling part of my land, when will the titles be split?
Titles are split at the point of final sale.
What happens if planning is granted but the land doesn’t sell?
The Option Agreement may be withdrawn, but you retain land with planning permission and full flexibility on next steps.
If I have to move house, will there be time?
Yes. We can arrange a delay between final exchange and completion to allow for moving arrangements.
WILL THIS DECREASE THE VALUE OF MY HOUSE?
The value of your house won’t be affected, as houses are valued on a price per square foot/metre of the property itself. There may be a small reduction in what your overall estate may be worth to a buyer. However, our offer-price for your land will far outweigh any potential loss.
Taxes and Advice
Will I need to pay Capital Gains Tax?
This depends on your circumstances. We recommend speaking to a Capital Gains Tax specialist. Generally, relief may apply if your property has been your main residence, the land area is within permitted limits, and no part has been used exclusively for business.
You’ll be entitled to full relief where all the following conditions are met:
- the dwelling house has been your only or main residence throughout your period of ownership
- you have not been absent, other than for an allowed period of absence or because you have been living in job-related accommodation, during your period of ownership
- the garden or grounds including the buildings on them are not greater than the permitted area. (The area of garden and grounds of a person’s residence that qualifies for relief is referred to in the legislation as the permitted area. The permitted area includes the site of the dwelling-house. S222(2) TCGA92 defines the permitted area as 0.5 hectares. If the garden and grounds of the residence, including the site of the dwelling-house, do not exceed the permitted area then relief is automatically due for that whole area.)
- no part of your home has been used exclusively for business purposes during your period of ownership. Working from home using a room that is also used for non-business purposes will not prevent entitlement to full relief
If you meet all of these conditions, you will not have to pay CGT on the disposal.
Experience and Track Record
What experience do you have?
Our team has extensive experience in planning uplift and land development. Our immediate business partner has over 10 years in the sector, and we’re happy to share completed example schemes for reference.