Understanding the best legal arrangements for developing land
Landowners are increasingly looking at ways to unlock additional revenue from their land, and one way can be through development.
Time constraints, lack of experience and cost can put landowners off developing the land themselves. They may then consider an arrangement with a developer or agreement with a planning specialist called a promoter who will work with the landowner to sell to a developer.
An option agreement is typically where the developer can purchase the land from the landowner once certain conditions are met.
A promotion agreement usually involves a planning specialist. Once planning permission is granted, they will usually look to sell the land on your behalf to a developer. The proceeds are then split between the landowner and developer at a pre-agreed split.
Both can work well. However, the type of land, local market conditions and constraints and location will all dictate the best approach.
Charlotte Shepherd, partner and head of property agency with Berrys at Shrewsbury.
