This can be an indication of planning potential. Whirledge & Nott’s Development team can advise on the planning potential and the best method of securing that potential whether by way of a planning application, planning representations or indeed entering into some form of joint venture agreement such as an option or promotion agreement.
If you have received a letter from a developer, housebuilder or promoter, it is important to understand your options:
Read the letter thoroughly and note its purpose, content, specific proposals or requests, and any deadlines.
Landowners are often approached with various agreements by developers and promoters, such as:
- Option Agreements: These options allow developers to purchase your land at a predetermined price, subject to specific conditions such as obtaining planning permission.
- Promotion Agreements: Promoters, rather than housebuilders, are typically the ones who enter into these agreements. They apply for planning permission, market the land, and secure a buyer. After the landowner sells the land, the promoter receives a fee based on the net sale proceeds.
- Conditional Sale Agreements: Developers are required to purchase land only when specific conditions are met, such as obtaining planning permission.
It is essential to prioritise your goals and assess the risks involved. Consider whether you aim to maximise profits from your property or if you’re open to taking on potential planning risks. Additionally, consider the importance of the decision-making process for you. It’s important to carefully evaluate the advantages and disadvantages of each agreement before making a decision. You are under no obligation to proceed. Seeking professional advice is always a wise choice to ensure you’re making informed decisions.
Selling your land can have financial implications, including potential tax obligations. Whirledge & Nott can work closely with your accountant, to help best understand and potentially minimise the capital gains, inheritance tax, and other tax considerations.
To discuss further, please contact: Martin, Matt, Michael, Paul, or Rhega in our Development Team.
