Covid 19 Update

Following the Government’s recent decision our Leicester team are all working remotely again and, for the time being the Leicester office itself is closed. The team are still available to help you so please continue to call or email us and we will be happy to assist. Our Loughborough and Market Harborough offices continue to offer all services by appointment. Please call us if you would like more information.

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Option & Promotion Agreements

Option & Promotion Agreements

Planning applications can be costly to run and there is always a risk that planning permission is not granted. As a landowner, this is a risk that needs to be considered. Even a well prepared and detailed planning application, which is recommended for approval by the Local Planning Authority can be refused, at great cost to a landowner. 

An alternative is to enter into an Option or Promotion Agreement, an area Andrew Granger & Co. has extensive experience in when acting for landowners. 
Under an Option Agreement, a landowner will give the developer a right to buy the land and the developer will take on the various obligations and costs involved in securing a planning consent. 

A Promotion Agreement will contain similar obligations to the Option Agreement (pursue planning consent), however it does not give a right for the promoter to purchase the site. Rather, the promoter is entitled to an agreed percentage of the sale proceeds when the land is sold. 

This is a very simple overview of what can be a tricky process to negotiate, if you would like to discuss these options in more detail, please feel free to contact the Planning & Development Team.