Land Option Agreements in Farnham
A land option agreement in Farnham 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 Farnham
Farnham sits about 10 miles west of Guildford in Surrey, in the GU9 postcode district. Nearby, we also cover Aldershot, Fleet and Farnborough, all within 6 miles. Within England, Farnham falls in the South East region.
Typical sites we review near Farnham include large and long rear gardens, backland plots with a workable access and farmland next to the settlement boundary. Planning in Farnham follows England’s rules: the National Planning Policy Framework sets national policy and the council’s Local Plan sets local policy.
A postcode and a rough boundary are enough for us to start a free appraisal of land near Farnham.
How we work in Farnham
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.
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.
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.
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.
Planning in Farnham: the English rules
Land with no planning permission can still be sold. Around Farnham, 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.
| Who decides applications | The local planning authority, usually the district, borough, city or unitary council (or a national park authority) |
|---|---|
| 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 Farnham
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.
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.
Is Farnham an area you cover for land?
Yes, we cover land in Farnham and elsewhere in Surrey, including Staines, Ewell and Banstead. Where a site suits us we can buy it directly, or set up an option or promotion agreement. On promotion there is nothing to pay upfront.
Read more: Land Option Agreements · Guide: Ransom strips and access: what landowners need to know