Land Option Agreements in Dundee
Think of an option on land in Dundee as a reservation with conditions attached. You agree not to sell to anyone else for a set term. In return, Land to Homes funds the planning work and pays your reasonable legal fees, agreed up front in the heads of terms. If permission is granted, we can buy at the formula price you agreed.
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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
Selling land around Dundee
Dundee (DD1) anchors our coverage of Angus & Dundee, which takes in 3 other places. Nearby, we also cover Forfar, Arbroath and Blairgowrie, all within 16 miles.
Sites worth a conversation around Dundee: land that already has planning permission, redundant commercial buildings and fields put forward or allocated in the local plan. In Scotland, where Dundee sits, planning decisions are made by the council as planning authority (or a national park authority in its area).
A postcode and a rough boundary are enough for us to start a free appraisal of land near Dundee.
How we work in Dundee
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.
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.
Planning in Dundee: the Scottish rules
If you own land on the edge of Dundee, its prospects in Scotland depend largely on the Local Development Plan, which allocates sites for housing, and on NPF4 policies such as those on local living, infrastructure and quality homes. An option or promotion agreement lets a partner fund the planning case while you keep ownership until a sale. With Land to Homes, your reasonable legal fees on these agreements are covered, with the amount agreed in the heads of terms.
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.
| Who decides applications | The council as planning authority (or a national park authority in its area) |
|---|---|
| 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 |
Land Option Agreements in Dundee: questions
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.
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 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 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.
Do you buy land in Dundee?
Yes. Land to Homes looks at land in Dundee and elsewhere in Angus & Dundee, including Arbroath, Forfar and Montrose. 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: Tax when selling land for development