Land Option Agreements in Peterhead
A land option agreement in Peterhead 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.
Peterhead · AB42Free 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 Peterhead
In Aberdeen & Aberdeenshire, Peterhead lies about 27 miles north-east of Aberdeen; its central postcode district is AB42. Fraserburgh is the closest neighbouring place we cover, at about 15 miles, followed by Inverurie and Aberdeen.
Around Peterhead we look at farmland next to the settlement boundary, small holdings and pony paddocks and former garage blocks and yards. Because Peterhead is in Scotland, land titles are registered with Registers of Scotland (Land Register of Scotland) and transfers attract Land and Buildings Transaction Tax (LBTT).
Tell us where your land is around Peterhead and we will explain the routes open to you.
Our approach in Peterhead
Option premium on signing
Many options include a payment when the agreement is signed, in return for tying up the land. Whether it is deducted from the final price is a point to settle in the heads of terms.
Longstop dates and extensions
The option usually ends on a fixed date, sometimes with an extension if an application or appeal is still running. Clear limits stop your land being tied up for longer than you agreed.
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.
Your legal fees paid
On option agreements we pay your reasonable legal fees, with the amount agreed up front in the heads of terms, so you can instruct your own solicitor to review every clause.
Rules that apply in Peterhead
In Scotland, planning applications for land around Peterhead are decided by the council as planning authority, using National Planning Framework 4 and the Local Development Plan, which together form the statutory development plan. Instead of outline permission, Scotland uses planning permission in principle, followed by approval of matters specified in conditions. Land to Homes can buy suitable sites directly or promote land through planning, and every conversation starts with a free site appraisal.
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 |
|---|---|
| Who decides applications | The council as planning authority (or a national park authority in its area) |
| 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 |
Land Option Agreements in Peterhead: questions
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.
What is an option premium?
It is a payment a developer may make when the option is signed, in return for exclusive rights over the land. The amount varies widely from site to site and is negotiated. Some agreements deduct it from the final purchase price, while others do not, so the heads of terms should say which applies.
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 is the difference between an option and a promotion agreement?
Under an option, the developer buys the land itself at a formula price, so it benefits from a lower valuation. Under a promotion agreement, the promoter sells the land on the open market with you and takes a fee from the proceeds, so both sides want the highest price. Our guide compares the two in detail.
Is Peterhead an area you cover for land?
Yes, we cover land in Peterhead and elsewhere in Aberdeen & Aberdeenshire, including Stonehaven, Aberdeen and Inverurie. 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 Option Agreements · Guide: Ransom strips and access: what landowners need to know