Land Option Agreements in Aberdeen & Aberdeenshire
A land option agreement in Aberdeen & Aberdeenshire gives a developer the right, but not the obligation, to buy your land within a fixed period, normally once planning permission is granted. The developer pays for the planning work. When the option is exercised, the price is usually market value with that permission, less an agreed discount and agreed costs.
Aberdeen & AberdeenshireFree site appraisal
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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 Aberdeen & Aberdeenshire
Across Aberdeen & Aberdeenshire, we cover Aberdeen and 4 other towns, among them Fraserburgh, Inverurie and Peterhead. Next door, we also cover Moray, Angus & Dundee and Perth & Kinross.
In and around Aberdeen & Aberdeenshire, the land we appraise ranges from large and long rear gardens to fields put forward or allocated in the local plan, including corner plots and side gardens. Because Aberdeen & Aberdeenshire is in Scotland, land titles are registered with Registers of Scotland (Land Register of Scotland) and transfers attract Land and Buildings Transaction Tax (LBTT).
If you own land near Aberdeen & Aberdeenshire, the first step is a free, no-obligation appraisal.
Our approach in Aberdeen & Aberdeenshire
Price set by valuation
The purchase price is usually market value with planning, agreed between the parties or set by an independent surveyor, less a negotiated discount. A minimum price clause can put a floor under the figure.
Deductions agreed in advance
Costs such as planning obligations, abnormal ground works or infrastructure are often deducted from the price. The agreement should list exactly what can be deducted, so the price cannot be eroded later.
Keep using your land
You normally stay in possession during the option. Farming, grazing or existing lettings can usually continue, subject to access for surveys and limits on granting new long-term tenancies.
Planning funded by us
We commission the surveys, design work and planning application at our own cost, and keep you informed at each stage so you know how the planning case is progressing.
The Scottish system, as it applies in Aberdeen & Aberdeenshire
Land sales in Scotland are concluded through missives, an exchange of formal letters between solicitors. Once missives are concluded they form a binding contract, and the buyer takes entry at settlement, then registers the title with Registers of Scotland. For land near Aberdeen & Aberdeenshire, missives can be made conditional on planning permission in principle, so the sale only proceeds if consent is secured. The buyer pays Land and Buildings Transaction Tax to Revenue Scotland.
In Scotland, an option is a personal contract and cannot be registered as a right in the land itself. Developers usually protect their position with a standard security registered with Registers of Scotland. When the option is exercised, the sale is concluded by missives and the buyer pays Land and Buildings Transaction Tax.
| National planning policy | National Planning Framework 4 (NPF4), which forms part of the statutory development plan |
|---|---|
| Local planning document | Local Development Plan (LDP) |
| Who decides applications | The council as planning authority (or a national park authority in its area) |
| In-principle consent | Planning permission in principle (PPP), followed by approval of matters specified in conditions |
| Land transaction tax (paid by the buyer) | Land and Buildings Transaction Tax (LBTT) |
| Land registration | Registers of Scotland (Land Register of Scotland) |
| How a sale becomes binding | Land sales are concluded through missives, formal letters exchanged between solicitors that become a binding contract once concluded, followed by settlement on the date of entry and registration in the Land Register of Scotland. |
| Developer contributions | Section 75 planning obligations, with Section 69 agreements sometimes used for simple one-off payments |
Your questions answered for Aberdeen & Aberdeenshire
Is an option payment taxable?
It can be. Receiving an option payment can have tax consequences when you receive it, not only when the land is finally sold, and the later sale may be looked at together with it. The position depends on your circumstances, so speak to an accountant before you sign.
What happens if planning is refused during an option?
The developer can usually appeal, submit a revised scheme or wait for a new local plan, as long as the option term allows. If no suitable permission is secured by the end date, the option lapses and you are free to deal with the land again, normally keeping any premium already paid.
Can I sell my land while it is under option?
Not without dealing with the option first. The developer's rights are normally protected against your title, so a buyer would take the land subject to them. Selling to the option holder or negotiating a release are the usual routes. Your solicitor will explain the effect where your land is.
What discount do developers take on a land option?
Options usually include a discount from market value to reflect the developer's cost and risk in securing planning. The level is negotiated case by case and there is no standard figure. Compare it alongside the deductions, minimum price and term, because a modest discount can be undone by wide deductions.
Do you buy land in Aberdeen & Aberdeenshire?
Yes. Land to Homes looks at land across Aberdeen & Aberdeenshire, including Inverurie, Peterhead and Aberdeen. Every enquiry starts with a free site appraisal, and on option and promotion agreements we pay your reasonable legal fees.
Read more: Land Option Agreements · Guide: Option agreement or promotion agreement: what is the difference?