Land with development potential
Landowners may become aware before during or after the Development Plan process that their land has development potential. Our expert advice will ensure that this potential is exploited and that the land is promoted to best effect so as to achieve the best price while taking into account the landowners' personal circumstances and estate management objectives.
We have many years of experience in the promotion and sale of such strategic development opportunities and can guide you through the alternatives, which could involve:
Outright sale with clawback and overage provisions
This will ensure you gain financially if in the future the land or property you sell gets planning permission and increases in value at a later date . There are various occasions when these may be appropriate but the legalities are complex and need expert handling.
Term option agreements
These are legal contracts between a seller and potential buyer of a property, allowing the buyer, in exchange for a fee, to buy land on fixed terms once a planning permission has been achieved.
The landowner enters an agreement with a specialist promoter who accepts the risks and the cost of the planning process. In exchange the promoter receives an agreed percentage of the actual selling price of the site.
The landowner enters into a legal agreement providing for part of the land to be acquired by the developer under a Term Option in exchange for a fee and the completion of specified infrastructure works. The balance can then be sold by the landowner as serviced sites at a later date at full market value
A deal has been agreed and under contract and both sides are committed to proceed with the transaction (unlike a Term Option), subject to specified conditions being met. The most usual condition in the case of sites is a grant of a satisfactory planning permission.
For further information please contact Roger Hayward