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For landowners · Greater London

Land Option Agreements in Barnet

How does a land option agreement work in Barnet?

A land option agreement in Barnet 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.

Ripe wheat field edge with a village church tower and rooftops beyond the hedgeBarnet · EN5

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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 Barnet

Barnet (EN5) is one of the Greater London towns we cover, about 10 miles north of London. The nearest other places we cover are Hadley Wood (2 miles), Potters Bar (3 miles) and Borehamwood (3 miles). Barnet is part of England’s London region.

Typical sites we review near Barnet include land behind street frontages, infill gaps along existing streets and land that already has planning permission. Because Barnet 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 Barnet.

How we work in Barnet

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.

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.

How the rules work in Barnet

Selling development land in Barnet usually starts with heads of terms, a short written summary of price, conditions and fees, before solicitors draft the contract. In England the sale becomes binding on exchange of contracts and finishes on completion, with the title then registered at HM Land Registry. The buyer normally pays Stamp Duty Land Tax. On option and promotion agreements with Land to Homes, your reasonable legal fees are covered, with the amount agreed in the heads of terms.

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.

Key rules in Barnet
Who decides applicationsThe local planning authority, usually the district, borough, city or unitary council (or a national park authority)
In-principle consentOutline planning permission, with reserved matters approved later
Land registrationHM Land Registry
Developer contributionsSection 106 planning obligations, plus the Community Infrastructure Levy (CIL) where the council charges it

Questions about Land Option Agreements in Barnet

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.

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.

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 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.

Do you buy land in Barnet?

Yes. Land to Homes looks at land in Barnet and elsewhere in Greater London, including Notting Hill, Chelsea and Wimbledon. 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: Option agreement or promotion agreement: what is the difference?

Own land that could take new homes?

Start with a free, no-obligation site appraisal. On option and promotion agreements we fund the planning work and pay your reasonable legal fees.

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