Land Option Agreements in Bournemouth
A land option agreement in Bournemouth 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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- 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
Land we look at around Bournemouth
Bournemouth is the main town we cover in Dorset, centred on postcode district BH1. The nearest other places we cover are Christchurch (4 miles), Poole (5 miles) and New Milton (10 miles). Bournemouth is in the South West region of England.
Typical sites we review near Bournemouth include brownfield land in and around Bournemouth, corner plots and side gardens and backland plots with a workable access. Because Bournemouth is in England, land titles are registered with HM Land Registry and transfers attract Stamp Duty Land Tax (SDLT).
A postcode and a rough boundary are enough for us to start a free appraisal of land near Bournemouth.
Our approach in Bournemouth
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.
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.
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.
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.
How the rules work in Bournemouth
In England, most planning applications for new homes in Bournemouth are decided by the local planning authority, usually the council, using its Local Plan and the National Planning Policy Framework. Many landowners sell without planning, either outright or through an option or promotion agreement that funds the application first. Land to Homes offers a free site appraisal, pays your reasonable legal fees on option and promotion agreements, and can buy suitable sites directly, subject to survey, title and contract.
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 |
|---|---|
| Who decides applications | The local planning authority, usually the district, borough, city or unitary council (or a national park authority) |
| How a sale becomes binding | A land sale becomes legally binding on exchange of contracts and finishes on completion, after which the buyer registers the title with HM Land Registry. |
| Developer contributions | Section 106 planning obligations, plus the Community Infrastructure Levy (CIL) where the council charges it |
Land Option Agreements in Bournemouth: 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.
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.
How does an option agreement work for land?
The landowner grants a developer the exclusive right to buy the land within a set term. The developer spends its own money seeking planning permission. If suitable permission is granted, the developer serves notice and buys at a price worked out under a formula in the agreement, usually market value less a discount and agreed costs.
Is Bournemouth an area you cover for land?
Yes, we cover land in Bournemouth and elsewhere in Dorset, including Weymouth, Poole and Christchurch. 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: Tax when selling land for development