Land, especially when it has development potential, can be a significant asset, which our team is on hand to help you realise

Selling land for development is a significant step and involves considering a range of different factors and routes. That’s why Berwins’ commercial  property team takes a tailored approach to the process.

If you’re looking to sell land for development, we’ll sit down and explore what it is you are trying to achieve and use our deep expertise to help find the best route to get you there.

Finding an agreement

Selling land for development will almost always involve working with a developer, something Berwins’ commercial property specialist are well versed in. That’s important, as having the right advice can avoid potentially costly pitfalls.

Most commonly, landowners will enter into an Option Agreement or a Land Promotion Agreement.

Option Agreements are made with a third party – usually, but not always a property developer – and give them the right and opportunity to purchase your land within a set time period. A purchase price is agreed upfront and is usually calculated on the basis that the developer can secure planning permission, something they will seek to secure. The option agreement gives no obligation for them to buy, whether or not permission is granted, but the landowner cannot sell to anyone else for the period that the agreement is in place.

A Land Promotion Agreement differs from an Option Agreement in that it is made between the landowner and a land promoter. They will generally apply for planning permission on the landowner’s behalf and, once achieved market the property for sale at an agreed reserved minimum price. The promoter will pay a premium for this whether or not planning permission is granted. If it is, and a sale to a developer is agreed, they will usually be reimbursed for their costs and take an agreed percentage of the sale value. 

A further option is for the landowner to obtain planning permission themselves and the promoter decides the marketing strategy.

Whichever route is best, it is important to understand the options in detail and Berwins will work with you to achieve that and find a constructive solution which meets your circumstances and helps to maximise the value of your land.