Land Promotion Agreements in Lerwick
Promotion agreements are often used for larger sites in Lerwick that need a plan allocation or a major planning application. The agreement sets a term, a minimum price, the promoter's fee and how costs are recovered. Land to Homes explains each term in plain English and pays your reasonable legal fees, agreed up front in the heads of terms.
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- Free site appraisalNo cost, no obligation
- Legal fees coveredReasonable fees, on options and promotion
- Nothing to pay upfrontOn promotion: we fund planning
- Direct purchaseSuitable sites, with or without planning
- UK-wideEngland, Wales, Scotland and NI
Our coverage in Lerwick
In Highlands & Islands, Lerwick lies about 215 miles north-east of Inverness; its central postcode district is ZE1. Close by, our coverage also takes in Kirkwall, Thurso and Fraserburgh.
In and around Lerwick, the land we appraise ranges from backland plots with a workable access to small holdings and pony paddocks, including redundant agricultural buildings. Planning in Lerwick follows Scotland’s rules: National Planning Framework 4 sets national policy and the council’s Local Development Plan sets local policy.
Tell us where your land is around Lerwick and we will explain the routes open to you.
What we offer in Lerwick
Retained land protected
If you keep neighbouring land, the agreement can secure access and services to it, so the new scheme does not cut off the rest of your holding or limit its future use.
Open-market sale
Once planning is secured, the land is marketed to housebuilders and other buyers, usually through an agent. The aim is genuine competition between bidders, rather than reliance on a single valuation figure.
Clear fee and cost rules
The heads of terms state the fee, which costs can be recovered and whether any cap applies, so you can see what will come out of the proceeds before you sign.
Interests aligned on price
The promoter's fee is linked to the sale price, so we only do well if you do. That is the main difference from an option, where the buyer benefits from a lower valuation.
Planning and land rules in Lerwick
Planning obligations in Scotland are made under Section 75 of the Town and Country Planning (Scotland) Act 1997 and can cover affordable housing and infrastructure. Once registered against the title, they can bind future owners. Under NPF4, national and major developments must also leave biodiversity in a demonstrably better state. These costs shape what development land near Lerwick is worth, which is why our free appraisal explains them before any offer or promotion terms are agreed.
In Scotland, promotion usually targets allocation in the Local Development Plan, followed by an application for planning permission in principle. Any Section 75 agreement is registered against the title. Because Scots law treats the agreement as a personal contract, the promoter's interest may be secured by a standard security, and the eventual sale is concluded by missives.
| National planning policy | National Planning Framework 4 (NPF4), which forms part of the statutory development plan |
|---|---|
| Local planning document | Local Development Plan (LDP) |
| Land transaction tax (paid by the buyer) | Land and Buildings Transaction Tax (LBTT) |
| Developer contributions | Section 75 planning obligations, with Section 69 agreements sometimes used for simple one-off payments |
Common questions in Lerwick
Can I end a promotion agreement early?
Usually only in limited circumstances set out in the agreement, such as the promoter failing to meet its obligations or the term expiring. Because the promoter is investing in planning, early termination by the landowner is normally restricted. Check the termination clauses with your solicitor before you sign.
What is a minimum price in a promotion agreement?
It is the lowest figure at which the landowner can be required to sell once planning is granted. It protects you from a sale in a weak market. Set it too high and the land may not sell; set it too low and it gives little protection. Some agreements allow review by an independent surveyor.
What fee does a land promoter take?
The fee is usually a share of the sale proceeds, sometimes calculated after costs are deducted and sometimes capped. There is no standard rate: it depends on the size of the site, the planning risk and the costs involved. Ask for the fee and the cost rules to be set out clearly in the heads of terms.
Who pays if the planning application fails?
On a Land to Homes promotion agreement there is nothing to pay upfront. We fund the planning work, and our costs are recovered from the sale proceeds only if the land sells with planning. How costs are treated in every scenario is written into the heads of terms before you sign anything.
Is Lerwick an area you cover for land?
Yes, we cover land in Lerwick and elsewhere in Highlands & Islands, including Thurso, Fort William and Kirkwall. Where a site suits us we can buy it directly, or set up an option or promotion agreement. On promotion there is nothing to pay upfront.
Read more: Land Promotion Agreements · Guide: How to sell land for development