Land Option Agreements in City of Westminster
Options suit landowners in City of Westminster whose land needs planning before it is worth building on. The terms that matter are the length of the option, any premium paid on signing, how market value is set, what may be deducted and the longstop date. Land to Homes explains each one in plain English before your solicitor sees a draft.
City of Westminster · W2Free site appraisal
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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 City of Westminster
We cover City of Westminster as part of Greater London. It is about a mile south-west of London, around postcode district W2. Pimlico is the closest neighbouring place we cover, at about 1 mile, followed by London and Chelsea. City of Westminster is in the London region of England.
In and around City of Westminster, the land we appraise ranges from farmland next to the settlement boundary to paddocks on the edge of City of Westminster, including land that already has planning permission. Planning in City of Westminster follows England’s rules: the National Planning Policy Framework sets national policy and the council’s Local Plan sets local policy.
Tell us where your land is around City of Westminster and we will explain the routes open to you.
How we work in City of Westminster
Longstop dates and extensions
The option usually ends on a fixed date, sometimes with an extension if an application or appeal is still running. Clear limits stop your land being tied up for longer than you agreed.
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.
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.
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.
Planning and land rules in City of Westminster
In England, most planning applications for new homes in City of Westminster 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 |
|---|---|
| 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 |
Land Option Agreements in City of Westminster: questions
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 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.
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 work with landowners in City of Westminster?
We do. We work with landowners in City of Westminster and elsewhere in Greater London, including Greenwich, Fulham and Leytonstone. Send us a postcode and we will start with a free, no-obligation appraisal of what the land could take.
Read more: Land Option Agreements · Guide: Section 106 and affordable housing: what landowners should know