Following a Site Appraisal, a Landowner or Developer Client may wish to consider entering
into an Option Agreement on a medium or longer term basis to secure the opportunity to develop
the land. We can act as an intermediary in negotiations.
Typically, the Developer will make an
upfront ‘deposit’ payment to the Landowner, and thereafter will make periodic payments to retain
the land ‘under option’. The Developer would normally purchase the land at a negotiated value
upon the ‘purification’ of certain conditions, such as obtaining planning consent and being
satisfied that the land can be adequately serviced. A wide range of Option Agreement terms
can be negotiated to suit the particular Developer and Landowner in question.
As well as advising on the most appropriate structure of an Option Agreement, we can advise
on suitable terms which meet the needs of the Client in terms of the spread of financial
commitment throughout the period and the timescales involved in the promotion of the site
within the Development Plan process.
Value to Client
We can advise on the structure of Option Agreements, employing our knowledge and expertise
of a broad range of ways in which such Agreements can be configured. We can advise on the
structure which we consider to be the most appropriate for the Client’s situation and aspirations.
For a Landowner, Option payments can serve to augment income from land, which can remain in
its current use whilst planning is being progressed.