Land Option Agreements in Newburn
A land option agreement in Newburn 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.
Newburn · NE15Free site appraisal
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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 Newburn
Newburn sits about 5 miles west of Newcastle upon Tyne in Tyne and Wear, in the NE15 postcode district. Nearby, we also cover Gosforth, Newcastle upon Tyne and Gateshead, all within 6 miles. Within England, Newburn falls in the North East region.
Around Newburn we look at former garage blocks and yards, land that already has planning permission and fields put forward or allocated in the local plan. As Newburn is in England, applications are judged against the National Planning Policy Framework, and the buyer of land pays Stamp Duty Land Tax (SDLT).
Tell us where your land is around Newburn and we will explain the routes open to you.
Why work with Land to Homes in Newburn
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.
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.
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.
Planning in Newburn: the English rules
Land with no planning permission can still be sold. Around Newburn, 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.
| 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. |
Questions about Land Option Agreements in Newburn
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.
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.
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.
How does an option agreement work for land?
The landowner grants a developer the exclusive right to buy the land within a set term. The developer spends its own money seeking planning permission. If suitable permission is granted, the developer serves notice and buys at a price worked out under a formula in the agreement, usually market value less a discount and agreed costs.
Is Newburn an area you cover for land?
Yes, we cover land in Newburn and elsewhere in Tyne and Wear, including South Shields, Gosforth and Hebburn. 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: Landowner joint ventures explained: sharing in the development