Option agreements for landowners
An option agreement gives a buyer the right, but not the obligation, to buy land within a set period, usually once planning permission is obtained. The landowner receives an option fee up front and, if the option is exercised, a price normally based on market value with permission, less agreed deductions.
Options are the usual way to bring larger sites forward. They let us invest in planning while you keep ownership and the use of your land.
- Free appraisal and written offer
- No pressure to decide
- Independent advice encouraged
Get an offer for your land
Send the postcode and a rough size. We'll come back with a straight answer.
Land this route suits
- Larger fields and blocks on the edge of towns and villages
- Land being considered in a local plan review
- Owners happy to wait several years for a higher price
- Holdings where several owners need to work together
- Land needing access or infrastructure to be unlocked
- Owners who want to keep farming until development
- Sites with technical issues that need time to resolve
An option can capture more of your land's value where it needs a long planning journey, but the details matter. We explain every term before you commit.
How an option agreement compares
If your land could be allocated in a future local plan, an option keeps it moving towards development without you funding the work.
| Feature | Outright purchase | Subject-to-planning sale | Option agreements | Joint ventures |
|---|---|---|---|---|
| When you're paid | On completion | On completion, after permission is granted | Option fee now, price when the option is exercised | Over time, as homes are built and sold |
| Certainty | High once contracts are exchanged | Medium: depends on planning | Lower: depends on planning over time | Lowest: you share in sales risk |
| Price | Lower than a conditional deal, reflecting the risk we take | Usually higher than an outright sale | Based on market value with permission, less agreed deductions | A share of the development value, if the scheme succeeds |
| Planning costs | Ours, after completion | Ours | Ours, sometimes recoverable from the price | Shared or ours, as agreed |
| Timescale | Set mainly by the legal work | Planning period, often months | Often several years | The longest route |
| Best for | Consented land, estates, owners who want certainty | Plots, garden land and small sites | Larger and strategic sites | Owners who want to share in development value |
The terms that matter
Option fee
A payment on signing, which you usually keep even if the option isn't exercised.
Purchase price
Often a percentage of market value with permission, less agreed costs.
Minimum price
A floor that protects you if values fall.
Term
How long we have to secure permission and exercise the option.
Deductions
Which planning and infrastructure costs come off the price before you're paid.
Exercise triggers
What has to happen before we can buy.
Your obligations
Agreements set what you can and can't do with the land in the meantime.
When the land isn't straightforward
You're worried about the deductions
Ask for a clear list and a cap on what can be deducted. We'll explain each one.
You want to be sure we'll actually pursue planning
Agreements can include obligations to use reasonable endeavours and set milestones.
You'd like your advisers' costs covered
Many option agreements include a contribution to the landowner's legal and agent costs. We'll tell you if ours does.
What happens next
Tell us about your land
Send the address or postcode, a rough size and anything you know about planning. A plan or a photo helps but isn't essential.
We check it properly
We look at the title, planning history, access, flood maps and local policy, then call you to talk it through.
You get a written offer
We put the offer in writing with the main figures behind it, so you or your adviser can check it. There's no obligation and no deadline we impose.
Solicitors do the legal work
Your solicitor and ours deal with the contract. On an outright sale we exchange and complete; on a conditional deal we exchange now and complete when the condition is met.
England and Wales: what's different
We buy land in both countries. These are the rules most likely to affect an option agreement.
England
Planning framework
Planning decisions in England follow the National Planning Policy Framework, revised in August 2026, and the local plan, prepared by the council or, in a national park, the park authority. Plans are reviewed periodically, which is when new housing sites are usually allocated.
Section 106 and CIL
Larger schemes often need a Section 106 agreement for affordable housing or contributions, and councils that have adopted the Community Infrastructure Levy charge it per square metre of new floorspace.
Wales
Planning framework
Planning in Wales follows Planning Policy Wales, the national plan Future Wales and the Local Development Plan, prepared by the council or, in a national park, the park authority. When plans are reviewed, landowners can put land forward as a candidate site.
Section 106 and CIL
Section 106 agreements apply in Wales, and a small number of Welsh councils charge the Community Infrastructure Levy.
Questions about an option agreement
What is an option agreement?
A contract that gives the buyer the right to buy your land within a set period, usually after planning permission is granted. You receive an option fee now and the purchase price if the option is exercised.
Do I keep the option fee if you don't buy?
Normally, yes. The terms are set out in the agreement.
How is the price set?
Usually as a percentage of the land's market value once permission is granted, minus agreed costs, with a minimum price. The percentage and deductions are negotiated.
How long do options last?
It varies with the site. Several years is typical for land needing local plan allocation, often with extension rights.
Can I sell to someone else during the option?
Not usually. The option binds the land, and it's normally registered against your title.
What's the difference between an option and a promotion agreement?
Under an option the buyer has the right to buy the land. Under a promotion agreement a promoter gets permission and then sells the land on the open market, taking a share of the proceeds. We offer options, not promotion agreements.
Related guides
Option agreements by county
England
- Bedfordshire
- Berkshire
- Bristol
- Buckinghamshire
- Cambridgeshire
- Cheshire
- Cornwall
- Cumbria
- Derbyshire
- Devon
- Dorset
- County Durham
- East Riding of Yorkshire
- East Sussex
- Essex
- Gloucestershire
- Greater London
- Greater Manchester
- Hampshire
- Herefordshire
- Hertfordshire
- Isle of Wight
- Kent
- Lancashire
- Leicestershire
- Lincolnshire
- Merseyside
- Norfolk
- North Yorkshire
- Northamptonshire
- Northumberland
- Nottinghamshire
- Oxfordshire
- Rutland
- Shropshire
- Somerset
- South Yorkshire
- Staffordshire
- Suffolk
- Surrey
- Tyne and Wear
- Warwickshire
- West Midlands
- West Sussex
- West Yorkshire
- Wiltshire
- Worcestershire
Wales
Find out what we'd pay for your land
Send us the postcode and a rough size. We'll check the title and planning position and come back with a straight answer.