Land Option Agreements in Lancashire
Options suit landowners in Lancashire 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.
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- Direct purchaseSuitable sites, with or without planning
- UK-wideEngland, Wales, Scotland and NI
Our coverage in Lancashire
Our Lancashire coverage takes in 18 towns and cities, centred on Preston and including Accrington, Burnley and Ormskirk. If your land is near a boundary, we also cover Greater Manchester, Merseyside and Cheshire.
Typical sites we review near Lancashire include small holdings and pony paddocks, land that already has planning permission and redundant agricultural buildings. Planning in Lancashire 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 Lancashire and we will explain the routes open to you.
Our approach in Lancashire
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.
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.
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.
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.
The English system, as it applies in Lancashire
Land with no planning permission can still be sold. Around Lancashire, the usual routes in England are a direct sale, an option agreement or a promotion agreement, where the planning work is funded for you and the land is sold once consent is granted. Outline planning permission settles the principle, with reserved matters approved later. Section 106 obligations, the Community Infrastructure Levy where charged and biodiversity net gain all affect what a site is worth, so independent advice matters.
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.
| National planning policy | National Planning Policy Framework (NPPF), revised August 2026, with national planning practice guidance |
|---|---|
| Local planning document | Local Plan |
| 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 |
| Land transaction tax (paid by the buyer) | Stamp Duty Land Tax (SDLT) |
| Land registration | HM Land Registry |
| 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 Lancashire
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.
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 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 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.
Do you work with landowners in Lancashire?
We do. We work with landowners across Lancashire, including Skelmersdale, Chorley and Colne. 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