Land Option Agreements in Edinburgh
A land option agreement in Edinburgh 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
Selling land around Edinburgh
Edinburgh (EH1) is the hub of our Edinburgh & the Lothians coverage, with 3 further towns covered. Musselburgh is the closest neighbouring place we cover, at about 6 miles, followed by Kirkcaldy and Dunfermline.
In and around Edinburgh, the land we appraise ranges from large and long rear gardens to backland plots with a workable access, including former garage blocks and yards. In Scotland, where Edinburgh sits, planning decisions are made by the council as planning authority (or a national park authority in its area).
Tell us where your land is around Edinburgh and we will explain the routes open to you.
What we offer in Edinburgh
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.
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.
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.
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.
The Scottish system, as it applies in Edinburgh
Scottish land deals differ from the rest of the UK in a few ways: contracts are concluded by missives, consent in principle is called planning permission in principle, and developer contributions use Section 75 agreements. Land to Homes works within those rules around Edinburgh, whether buying a suitable site directly with no onward chain, subject to survey, title and contract, or promoting it through planning with nothing to pay upfront. Planning permission is never guaranteed, so we explain the risks plainly.
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.
| Local planning document | Local Development Plan (LDP) |
|---|---|
| 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) |
| Developer contributions | Section 75 planning obligations, with Section 69 agreements sometimes used for simple one-off payments |
Land Option Agreements in Edinburgh: 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.
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.
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 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 Edinburgh?
Yes. Land to Homes looks at land in Edinburgh and elsewhere in Edinburgh & the Lothians, including Bathgate, Musselburgh and Livingston. 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: Landowner joint ventures explained: sharing in the development