Land Option Agreements in Milton Keynes
A land option agreement in Milton Keynes 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.
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- Nothing to pay upfrontOn promotion: we fund planning
- Direct purchaseSuitable sites, with or without planning
- UK-wideEngland, Wales, Scotland and NI
Land we look at around Milton Keynes
Milton Keynes (MK6) is the hub of our Buckinghamshire coverage, with 7 further towns covered. Close by, our coverage also takes in Bletchley, Leighton Buzzard and Ampthill. Milton Keynes is in the South East region of England.
Typical sites we review near Milton Keynes include brownfield land in and around Milton Keynes, redundant commercial buildings and former garage blocks and yards. As Milton Keynes is in England, applications are judged against the National Planning Policy Framework, and the buyer of land pays Stamp Duty Land Tax (SDLT).
If you own land near Milton Keynes, the first step is a free, no-obligation appraisal.
Our approach in Milton Keynes
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.
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.
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.
Right to buy, not obligation
The developer may buy if suitable planning is granted, but does not have to. You are bound not to sell elsewhere during the term, which is why its length and exit points matter so much.
The English system, as it applies in Milton Keynes
Land with no planning permission can still be sold. Around Milton Keynes, the usual routes in England are a direct sale, an option agreement or a promotion agreement, where the planning work is funded for you and the land is sold once consent is granted. Outline planning permission settles the principle, with reserved matters approved later. Section 106 obligations, the Community Infrastructure Levy where charged and biodiversity net gain all affect what a site is worth, so independent advice matters.
In England, an option is usually protected by a notice on your title at HM Land Registry. Planning is pursued through the Local Plan or an application judged against the NPPF, and price deductions often cover Section 106 obligations, the Community Infrastructure Levy and, where it applies, the cost of meeting biodiversity net gain.
| Local planning document | Local Plan |
|---|---|
| Land transaction tax (paid by the buyer) | Stamp Duty Land Tax (SDLT) |
| Land registration | HM Land Registry |
| Developer contributions | Section 106 planning obligations, plus the Community Infrastructure Levy (CIL) where the council charges it |
Common questions in Milton Keynes
How long do land option agreements last?
The term is negotiated and depends on how much planning work is needed. Strategic sites waiting for a new local plan usually need longer terms than small sites with clear policy support. Look for a firm longstop date and sensible limits on any extensions, so the land cannot be tied up indefinitely.
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.
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 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.
Do you buy land in Milton Keynes?
Yes. Land to Homes looks at land in Milton Keynes and elsewhere in Buckinghamshire, including Bletchley, Aylesbury and High Wycombe. 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: Ransom strips and access: what landowners need to know