Land Option Agreements in Gillingham
A land option agreement in Gillingham 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
Land we look at around Gillingham
We cover Gillingham as part of Kent. It is about 9 miles north of Maidstone, around postcode district ME7. If your land sits between towns, Chatham, Rochester and Strood are the closest neighbouring places on our list. Within England, Gillingham falls in the South East region.
Sites worth a conversation around Gillingham: redundant agricultural buildings, farmland next to the settlement boundary and infill gaps along existing streets. In England, where Gillingham sits, planning decisions are made by the local planning authority, usually the district, borough, city or unitary council (or a national park authority).
If you own land near Gillingham, the first step is a free, no-obligation appraisal.
What we offer in Gillingham
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.
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.
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.
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.
Planning in Gillingham: the English rules
Selling development land in Gillingham 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.
| Who decides applications | The local planning authority, usually the district, borough, city or unitary council (or a national park authority) |
|---|---|
| In-principle consent | Outline planning permission, with reserved matters approved later |
| 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 |
Your questions answered for Gillingham
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 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 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.
Do you buy land in Gillingham?
Yes. Land to Homes looks at land in Gillingham and elsewhere in Kent, including Herne Bay, Ramsgate and Gravesend. 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: Who pays for land promotion? Fees, costs and legal fees explained