If you are a Landowner, you may have heard about a Land Promotion Agreement when considering selling your land for development. They have become increasingly popular over the last few years, as the UK government continues their plans to build more new homes each year. Land development opportunities are on the rise, giving Landowners the opportunity to sell their land for maximum return. Rosconn Strategic Land have highlighted some of the benefits of drawing up a Land Promotion Agreement and working with a Land Promoter, as opposed to selling land directly to a developer.
What is a Land Promotion Agreement?
A Land Promotion Agreement is an agreement between landowner and land promoter that allows a Land Promoter the opportunity to promote, sell and maximise land on behalf of a Landowner. The aim of a Land Promotion Agreement is to take the land and owner through the planning process, in order to achieve a maximum financial return on the land.
What does this mean for Landowners?
As a Landowner, this allows you to be as involved in the process as you would like. If you would rather let your Land Promoter take control of the promotion and sale of your land, that is absolutely acceptable. For Landowners, a Land Promotion Agreement gives the Land Promoter access and control to complete the process for you whilst also covering financial costs and risk. This means you will avoid unwanted upfront costs and legal fees, as the Land Promoter provides financial backing plus their professional knowledge and expertise.
Working with a Land Promoter
Your chosen Land Promoter will take you through the process, right through to the sale of your land. This includes:
- Signing a Land Promotion Agreement.
- Discussions with Key Local Stakeholders, including the Parish Council, Local Ward Member, Local Organisations/Clubs and the Local Authority.
- Pre-planning land surveys to ensure the land is suitable for development.
- Planning application submission.
- The Land Promoter will manage the planning process, reviewing plans and re-submit if the original planning application is not approved.
- All Planning promotion and legal fees are covered by the Land Promoter, as a Landowner you are at no financial risk.
- The co-ordination of the transparent sales and marketing process, to ensure that maximum value is achieved via land disposal at the point of having enhanced the land values via navigating the planning process and achieving an allocation in the Local Plan or Planning Permission.
- Achieving sale and completion of the land and ensuring that a fully detailed legal pack of information accompanies the detailed sales pack put out to the housebuilder market, maximising the value of your land.
- The Land Promoter will take a fixed percentage of the sale of your land.
Maximise Financial Return on Your Land
Selling the land on the open market means the landowner maximises their financial return. This is opposed to selling land directly to a house builder or developer at the start of the process pre planning permission being obtained. When disposing of land via a transparent marketing process several house builders can competitively tender for the land, therefore, allowing you to choose the most robust offer that provides most certainty of delivering best value. The Land Promoter goal is aligned to the landowner’s, achieving a maximised return for the land by creating competitive tension via the detailed sales and marketing journey. The transparency of the land promotion route avoids conflict of interest and provides peace of mind for the landowner.