Land Option Agreements in Chatham
A land option agreement in Chatham 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
Our coverage in Chatham
We cover Chatham as part of Kent. It is about 8 miles north of Maidstone, around postcode district ME4. Gillingham is the closest neighbouring place we cover, at about 1 mile, followed by Rochester and Strood. Chatham is in the South East region of England.
Typical sites we review near Chatham include fields put forward or allocated in the local plan, paddocks on the edge of Chatham and large and long rear gardens. As Chatham is in England, applications are judged against the National Planning Policy Framework, and the buyer of land pays Stamp Duty Land Tax (SDLT).
A postcode and a rough boundary are enough for us to start a free appraisal of land near Chatham.
Our approach in Chatham
Planning funded by us
We commission the surveys, design work and planning application at our own cost, and keep you informed at each stage so you know how the planning case is progressing.
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.
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.
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.
Rules that apply in Chatham
Whether a field or large garden could take homes depends mostly on the council's Local Plan and national policy. Under the National Planning Policy Framework, plans define settlement boundaries, and land just outside Chatham may still come forward if it is allocated, previously developed or meets evidenced unmet housing need. Smaller housing schemes can also use Permission in Principle, an England-only route that settles location, use and amount first. Our free appraisal explains which route suits your land.
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) |
| 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 |
Common questions in Chatham
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.
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.
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.
Do you buy land in Chatham?
Yes. Land to Homes looks at land in Chatham and elsewhere in Kent, including Broadstairs, Gillingham and Faversham. 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: Section 106 and affordable housing: what landowners should know