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There is now a well-established network of individuals and companies who seek out land that they consider in the medium to long term might have planning potential for future development. They approach landowners asking them to enter into either a promotion agreement or an option agreement in respect of the land. What is this and what should I do?
Essentially, a land promoter will utilise their expertise and knowledge regarding obtaining planning permission for development and utilise changes in local plans and policies to time when they apply and what type and size of development they apply for. Typically the costs of pursuing planning are met by the land promoter in the first instance and are then deducted from any future sale of the land to a developer once planning permission has been obtained.
Promotion and Option agreements can be very complex and there are many things to consider, not only in terms of how much you will receive for the land but also how long the agreement will be in place for, restrictions as to what you can do with the land during the term of the agreement and what happens if other land owned by a third party is added to the potential development site.
Sydney Mitchell has the knowledge to help guide you through this process, please give Claire Cooper c.cooper@sydneymitchell.co.uk or one of our real estate team a call to discuss on 0808 166 8827.
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