Option Agreements

If you are looking to sell your land to a developer, an Option Agreement is the most common route.  The terms of the sale including the price and the length of contract are all determined up front.  The developer will then try to gain planning permission and may then purchase the land within the contract period by exercising the Option Agreement.

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An Option Agreement provides flexibility to the developer which helps them to adapt to changes required by the planning system.  Given the investment required to gain planning permission, it is unusual for a developer not to exercise the Option Agreement, however on the rare occasions that this does happen, the landowner is likely to benefit from an increase in land value, as the principle of development has been achieved through the planning permission.