Land Option Agreements in Eltham
Options suit landowners in Eltham 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.
Eltham · SE9Free 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
Our coverage in Eltham
We cover Eltham as part of Greater London. It is about 9 miles south-east of London, around postcode district SE9. Close by, our coverage also takes in Blackheath, Welling and Catford. Within England, Eltham falls in the London region.
Around Eltham we look at fields put forward or allocated in the local plan, brownfield land in and around Eltham and small holdings and pony paddocks. Because Eltham is in England, land titles are registered with HM Land Registry and transfers attract Stamp Duty Land Tax (SDLT).
Send us a postcode in or near SE9 and we will start with a free desktop appraisal.
What you get in Eltham
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.
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.
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.
The English system, as it applies in Eltham
Selling development land in Eltham 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.
| In-principle consent | Outline planning permission, with reserved matters approved later |
|---|---|
| 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 Eltham
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.
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 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.
Do you work with landowners in Eltham?
We do. We work with landowners in Eltham and elsewhere in Greater London, including Walthamstow, Thamesmead and Surbiton. 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: Who pays for land promotion? Fees, costs and legal fees explained