Option & Promotion Agreements
Once the potential for development has been identified on a piece of land or redundant buildings, the next steps can seem daunting and costly. Option and Promotion Agreements are typically the next steps explained below.
Option Agreements
- The landowner gives a purchaser (usually a developer) the option to purchase their land within a specified timeframe. Typically, this period ranges from 5 to 10 years, but it can be longer.
- The developer applies for planning permission (at their own expense) and if consent is granted and satisfactory to the developer, they have first refusal to purchase the land.
- The price is either negotiated once planning is granted or can be fixed in advance.
Promotion Agreements
- The landowner enters into an agreement with a promoter (usually a company or individual) and is contractually bound to sell the land if planning permission is granted.
- The promoter applies for planning permission, paying for all costs throughout the process.
- Once the planning permission is granted, the site is offered for sale.
- Proceeds from the sale are divided between the landowner and the promoter after the promoter has been reimbursed for their planning and professional costs.
Every parcel of land is unique, and it is essential to carefully consider factors such as location, market conditions, and local planning policies before committing to the next step. Both agreements have their advantages and, if negotiated well, can ensure a mutually beneficial outcome for both parties.
Symonds & Sampson’s experts have the local knowledge and expertise to help you understand the alternatives and what you have to offer, thus enabling you to select the most suitable pathway to a successful outcome.
Meet the Option & Promotion Agreements Team
Edward Dyke
Partner
Sturminster Newton
FRICS FAAV
Department: Rural and Agricultural, Professional, Sturminster Newton Rural and Agricultural
Speciality: Agricultural Tenancies, Agricultural Appraisals, AMC Boundary Disputes, Compensation, Compulsory Purchase, Contract Farming, Development Land, Diversification, Easements, Expert Witness, Farm Business Tenancies, Farms and Land, Grass Keep, Option Agreements, Options, Planner, Preparation of Plans for Land Registry, Probate, Promotions, RICS Registered Valuer, RICS Valuer, Tax Planning, Valuations, Valuations for Banks, Wayleaves
07787 128286
edyke@symondsandsampson.co.uk
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Richard Miller
Managing Partner
Dorchester, Poundbury Burraton House
MRICS FAAV
Department: Rural and Agricultural, Professional, Dorchester Rural and Agricultural, Burraton Rural and Agricultural
Speciality: Agricultural Tenancies, Boundary Disputes, Compensation, Compulsory Purchase, Contract Farming, Development Land, Easements, Estate Management, Farm Business Tenancies, Option Agreements, Options, Preparation of Plans for Land Registry, Probate, Promotions, RICS Registered Valuer, RICS Valuer, Tax Planning, Valuations, Wayleaves
01305 236574
rmiller@symondsandsampson.co.uk
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A-J Monro (Andrew)
Partner, Head of Professional Services
Wimborne
MRICS FAAV APAEWE
Department: Rural and Agricultural, Professional, Wimborne Rural and Agricultural
Speciality: Agricultural Tenancies, AMC, Boundary Disputes, BPS, Compensation, Contract Farming, Development Land, Diversification, Easements, Energy, Expert Witness, Farm Business Tenancies, Farm Finance, Farms and Land, Grass Keep, Option Agreements, Options, Planner, Preparation of Plans for Land Registry, Probate, RICS Registered Valuer, RICS Valuer, Rural Grants and Subsidies, Tax Planning, Telecoms, Valuations, Valuations for Banks, Wayleaves
01202 882103
07867 555838
amonro@symondsandsampson.co.uk
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Chris Powell
Partner
Devizes
BSc(Hons) MRICS FAAV
Department: Devizes Rural and Agricultural, Rural and Agricultural, Professional,
Speciality: Agricultural Tenancies, Agricultural Appraisals, Agriculture, Biodiversity Net Gain, BPS, Contract Farming, Development Land, Diversification, Estate Management, Expert Witness, Farm Business Tenancies, Farms and Land, Grass Keep, Option Agreements, Options, Preparation of Plans for Land Registry, Promotions, Rural Grants and Subsidies, Tax Planning
01380 710535
07375 370163
cpowell@symondsandsampson.co.uk
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