Guide
The ways a landowner can structure a deal — from a clean sale to an option or promotion agreement — what each means for value, risk and control, and how to get the best result.
In this guide
Selling land to a developer isn't one transaction — it's a choice of structures, each striking a different balance between how much you get, how certain it is, and how long it takes. The four you'll meet most often:
| Route | Upside | Trade-off |
|---|---|---|
| Unconditional sale You sell now, as the land is, for a fixed price. | Certain and quick; no planning risk to you. | You forgo the planning uplift — the buyer keeps it. |
| Subject to planning Sale completes only once the buyer secures planning. | More value than selling as-is; buyer runs the planning. | Slower and less certain; the deal can fall away. |
| Option agreement A developer pays for the right to buy later, usually after getting consent. | You're paid for the option; upside if consent is won. | You're tied up for the option period; price often at a discount to market. |
| Promotion agreement A promoter funds and runs planning, then the land is sold on the open market and you share the proceeds. | Promoter carries the cost and risk; aligned to maximise value. | You share the proceeds with the promoter; less control over timing. |
Whichever route you take, an overage (or clawback) clause can protect you: it pays a further sum if the land later gains value — for instance if a buyer secures enhanced planning after the sale. The trigger, the period and your share are all negotiated. It's a sensible guard against selling too cheaply when there's more potential than today's consent reflects.
Before you sign anything: understand what your land could be worth with planning, not just today. Our guide on what your land is worth with planning covers the uplift and the sell-versus-partner choice.
These are significant, often long-term commitments, and the detail matters — option periods, price formulas, overage triggers and who controls the planning strategy all shape what you actually walk away with. Take proper legal and valuation advice, and deal with people who'll be straight with you. Elizabeth Homes gives landowners an honest early view of the options and, where it fits, partners to bring a site forward — always privately, and always at your pace.
There's more than one way. You can sell unconditionally for a fixed price now; sell "subject to planning" so the sale completes once consent is granted; grant an option that lets a developer buy later; or enter a promotion agreement where a promoter funds the planning and you share the sale proceeds. Which suits depends on how much risk, time and control you want.
A developer pays you a fee for the exclusive right to buy your land within a set period, usually once they've secured planning — often at a price set by a formula (frequently a small discount to market value at the time). You get paid for the option and share in the upside if consent comes, but your land is tied up while they pursue it.
A land promoter funds and runs the planning process at their own risk, then the consented land is marketed and sold, and you share the proceeds by an agreed split. Your interests are aligned — the promoter only earns if value is created — but you give up a share of the sale and some control over timing.
Overage (or clawback) is a clause that pays you a further sum if the land later gains value — for example if enhanced planning is secured after sale. It's a way to protect against selling too cheaply if the buyer unlocks more than expected. The trigger and share are negotiated case by case.
Selling gives you certainty and a clean exit; partnering (through an option, promotion, or a development arrangement) can realise more of the uplift but carries more time, complexity and risk. Our guide on what your land is worth with planning walks through that choice. The right answer depends on your circumstances — and it's worth honest advice before you commit.
Yes. We give landowners an honest early read on what a site could support and the routes open to you — and, where it fits, we partner to bring a site forward. Every conversation is private and treated in confidence. We're not financial or legal advisers, so we'd always suggest you take your own professional advice too.
Own land with potential?
We'll give you an honest, no-obligation read on what your land could support and the routes open to you. Every conversation is private and treated in confidence.
How we work with landownersRelated
This guide is general information for landowners — educational only, and not legal, tax, valuation or financial advice, nor an offer of investment. Land deals are complex and site-specific; always take independent professional advice before entering any agreement.
