Your Questions
Q: What's an Option Agreement?
A: A legal contract where you give us the right (the "option") to purchase your land at an agreed price, once we've secured planning permission. The option is locked in by a nominal fee (£1) at signing. No real money changes hands until much later, when planning is granted and the sale to a developer completes.
Q: What happens if planning is refused?
A: We absorb the risk. If we can't get planning consent (even after appeals), we walk away. You owe us nothing. Your land is yours, unchanged.
Q: How long is my land tied up in the option agreement?
A: Up to 8 years total. That gives us enough time to navigate planning (12 months to 3 years) plus a window to complete the sale to a developer (typically 12 months after consent, often much less in practice). If we haven't completed within the agreed window, the option lapses and your land is yours again.
Q: Can I keep using my land while the planning process runs?
A: Yes. The option agreement gives us the right to apply for planning, not the right to use the land. You stay the legal owner throughout the planning process. You can carry on farming, grazing, parking, doing whatever you currently do with it.
Q: Who chooses the developer who buys the land?
A: We lead the marketing and negotiation, but you're involved in the decision. The option agreement also includes a minimum sale price (based on independent valuation) so we can't sell at less than the agreed floor. The aim is the highest reasonable market price every time.
Q: Who pays for my solicitor to review the agreement?
A: We do, up to £1,000 + VAT. You shouldn't have to write a cheque to take advice on something we're asking you to sign.
Q: What if you can't find a developer to buy the land after planning is granted?
A: If we can't complete a sale within the agreed window (typically 24 months from consent), the option lapses. The good news for you: your land is now yours, with planning consent. You can either sell it independently (with consent, you're in a very strong position) or sit on it.
Q: How will I know what's happening?
A: Monthly updates from Fay as standard, more often if there's something to report, and a direct line to either of us any time you want to ask a question.
Q. Will I need to pay capital gains tax?
A. This will depend on your personal circumstances, and we always advise that our clients speak to a capital gains tax specialist if unsure. However, here is what HMRC are saying:
You’ll be entitled to full relief where all the following conditions are met:
The dwelling house has been your only or main residence throughout your period of ownership
You have not been absent, other than for an allowed period of absence or because you have been living in job-related accommodation
The garden or grounds, including the buildings on them, are not greater than the permitted area
No part of your home has been used exclusively for business purposes during your period of ownership
If you meet all of these conditions, you will not have to pay CGT on the disposal.
* The permitted area is defined under S222(2) TCGA92 as 0.5 hectares. If the garden and grounds of the residence, including the site of the dwelling house, do not exceed this area, relief is automatically due.
Disclaimer: We are not tax specialists and cannot offer definitive advice. Please refer to HMRC guidance. Every landowner’s personal situation is different, so we recommend carrying out your own due diligence and speaking to a tax adviser if required.
Q: We've been approached by a national Option-buyer who offered to buy our land. Why work with you?
A: We get to know our clients and work on their behalf. We don't treat you like a number. Being a small, independent business allows us to operate that way. We understand that land sales can be emotional for a number of reasons. We make the process as smooth as possible and keep you involved - as little of as much as you wish to be. Our job is to make life easier for you.
