Land Option Agreements in Rutherglen
A land option agreement in Rutherglen 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 Rutherglen
Rutherglen (G73) is one of the Lanarkshire towns we cover, about 5 miles north of East Kilbride. Nearby, we also cover Cambuslang, Glasgow and East Kilbride, all within 5 miles.
Around Rutherglen we look at farmland next to the settlement boundary, redundant commercial buildings and corner plots and side gardens. In Scotland, where Rutherglen sits, planning decisions are made by the council as planning authority (or a national park authority in its area).
Send us a postcode in or near G73 and we will start with a free desktop appraisal.
How we work in Rutherglen
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.
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.
The Scottish system, as it applies in Rutherglen
Land sales in Scotland are concluded through missives, an exchange of formal letters between solicitors. Once missives are concluded they form a binding contract, and the buyer takes entry at settlement, then registers the title with Registers of Scotland. For land near Rutherglen, missives can be made conditional on planning permission in principle, so the sale only proceeds if consent is secured. The buyer pays Land and Buildings Transaction Tax to Revenue Scotland.
In Scotland, an option is a personal contract and cannot be registered as a right in the land itself. Developers usually protect their position with a standard security registered with Registers of Scotland. When the option is exercised, the sale is concluded by missives and the buyer pays Land and Buildings Transaction Tax.
| Local planning document | Local Development Plan (LDP) |
|---|---|
| Land transaction tax (paid by the buyer) | Land and Buildings Transaction Tax (LBTT) |
| Land registration | Registers of Scotland (Land Register of Scotland) |
| Developer contributions | Section 75 planning obligations, with Section 69 agreements sometimes used for simple one-off payments |
Common questions in Rutherglen
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.
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.
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.
Do you work with landowners in Rutherglen?
We do. We work with landowners in Rutherglen and elsewhere in Lanarkshire, including Hamilton, Coatbridge and Wishaw. 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: Tax when selling land for development