Whatever the scope of your land development project, our team of Commercial Property solicitors will collaborate with you to offer an end-to-end service. The advice we give is clear, timely and above all, practical.
Our Commercial Property solicitors have expertise in land development projects, including helping:
THP Solicitors’ land development team has advised on numerous development and regeneration transactions, assisting landowners and land promoters looking to realise the value of their estate, and commercial property investors looking to invest capital.
We offer a tailored legal service for all sizes and types of real estate transactions, from large residential-focused developers, mixed-use schemes, to smaller bespoke residential or industrial developments.
Balancing the legal and commercial risks in real estate-focused lending transactions is vital, and we are experienced in helping our clients secure finance for their real estate projects. The issues concerning land development can be complex, and the values involved can be high, so we provide expert legal advice to ensure that your transaction runs as smoothly as possible and that you secure maximum value.
Whether you are a landowner seeking to maximise the value of your land, or a developer looking to explore the viability of a project before committing to buy the land, our experienced team can assist with all aspects of Option Agreements as well as conditional and unconditional contracts. We offer a tailored legal service for all sizes and types of real estate transaction, from large mixed-use schemes to small bespoke residential or industrial developments and always provide clarity when it comes to our pricing structures.
Contact Frances Watts, Head of our Commercial Property Team, to see how we can help with your commercial real estate needs on f.watts@thpsolicitors.co.uk or T: 0118 975 6622.
Our Commercial Property solicitors have developed strong working relationships with many real estate developers and look to become an integral part of our clients’ businesses, ensuring we understand their appetite for risk and tailoring our legal advice to their specific requirements.
We recognise that our commercial real estate legal knowledge needs to be robust and wide-ranging to ensure we advise clients on all elements that a development site can bring with it, including:
We have significant experience in acting for both developers and landowners. Recent real estate transactions include:
We are seeing an influx of landowners being approached by developers who offer to try and obtain planning permission for development of their land in return for the right to purchase the land at a once they have obtained planning permission. This arrangement would be formalised in an Option Agreement which is a binding contract between a landowner and a developer where the developer has the opportunity to purchase land from the landowner within an agreed time frame.
Before an Option Agreement is entered into, most developers will wish to conduct pre-contract enquiries into the land to determine if there are any restrictions or other matters which will prevent or interfere with the intended proposals to develop the land.
The advantage of an Option Agreement for the landowner is that the developer will apply for the grant of planning permission at their own cost and risk. Any legal costs the landowner may incur are usually met by the developer. This allows landowners land to progress through the planning process without having to go through the costly process of obtaining planning permission themselves. Landowners can also take advantage of the experience and skills of the developers when it comes to obtaining planning permission, potentially increasing the chances of the development going ahead.
Conversely, the risk to the landowner of entering an Option Agreement is that it does not guarantee a sale at the end of the option period. As they will be entering into an agreement for a number of years, this is likely to restrict a land owner from selling their property during the option period.
There are no standard commercial terms for an option, and this will be dependent upon a number of factors. Both parties should take professional advice on the terms from a land agent or surveyor.
Once the developer is satisfied with the feasibility of the proposed development, they can trigger the purchase of the property by exercising the option, making it obligatory for the landowner to sell to them on the terms set out in the agreement. Note, whilst the developer can choose to exercise their option to purchase the land, there is no actual obligation on them to proceed with the purchase.
Option agreements work well for developers as they are able to secure the opportunity to purchase a site and progress the planning process without needing to expend the full purchase price and tie up their funds.
If the parties agree a conditional contract, a developer will be compelled to purchase the property once planning permission is granted, which can give a landowner greater comfort that a developer will proceed.
Once land has been developed, it will have an increased market value – so landowners may also want to think about methods by which they may share in the developer’s profits or uplift in the value of their land even after they have parted ways, known as Overage Agreements. For an Overage Agreement to be effective, the correct legal framework will need to be put in place and there are many considerations that will need to be negotiated.
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