FREQUENTLY ASKED QUESTIONS
OPTION AGREEMENTS & OFFERS
What is an Option Agreement?
An Option Agreement is a legally binding contract between a landowner and a land buyer. It gives the buyer the option to purchase the land within an agreed timeframe, usually subject to planning permission being granted.
What will you be able to offer me?
Following a site visit, we work with our planning and development team to assess the potential of your land and prepare a proposed scheme. Once this has been completed, we will discuss the opportunity with you and present a formal offer. This process typically takes 4–6 weeks.
Will the offer price be agreed before the Option Agreement is signed?
Yes. The agreed purchase price will be clearly stated within the Option Agreement before it is signed.
Will the initial offer price change?
No. The agreed price is written into the Option Agreement and remains fixed throughout the process.
Can you offer a cash or outright purchase?
In most cases, we prefer to use Option Agreements as they allow us to maximise the value of the land while reducing risk for all parties involved.
How long will the Option Agreement last?
Option Agreements are typically agreed for 12 months, with a 6-month extension available if additional time is required to deal with planning matters or unforeseen circumstances.
Could the process be completed in less than 12 months?
Yes. While 12 months is our typical timeframe, many projects progress more quickly. We will keep you informed throughout the process.
Can I set conditions before signing an Option Agreement?
Yes. We encourage landowners to discuss any requirements or concerns before entering into any agreement.
Can I review the Option Agreement before signing?
Absolutely. You and your solicitor can review the agreement as many times as necessary before signing.
PLANNING & DEVELOPMENT
What types of land do you consider?
We review a wide range of opportunities, including garden plots, paddocks, fields, infill sites and other land with potential for residential development.
When will the planning application be submitted?
We aim to submit planning applications within approximately 4 months of the Option Agreement being signed and exchanged.
How long does planning permission take?
Most planning applications are determined within 12–16 weeks, although timescales can vary depending on the local authority and complexity of the proposal.
What happens if planning permission is refused?
If planning permission is refused, the Option Agreement would normally come to an end and ownership of the land would remain with you. We would discuss any alternative options that may be available at the time.
When will the land be marketed to developers?
We typically begin discussions with our developer network during the planning process so that interest is established before planning permission is granted.
What happens if planning permission is granted but the site cannot be sold?
Should a sale not proceed, the Option Agreement would come to an end and ownership of the land would remain with you. You would then own land with planning permission and be free to decide how you wish to proceed.
COSTS & LEGAL MATTERS
Do I need a solicitor?
Yes. We recommend using a solicitor with experience in Option Agreements and land transactions. We are happy to suggest suitable professionals if required.
How much will I have to pay?
You won’t have to pay anything. We cover all planning costs and contribute up to £2,500 + VAT towards your legal fees.
Will there be much paperwork?
Your solicitor will guide you through the legal documents. In most cases, this will include the Option Agreement, Transfer Deed and standard property information forms.
Do I need permission from my mortgage lender?
If you have a mortgage and are selling part of your land, you will usually need consent from your lender. We recommend speaking to them as early as possible.
When will the titles be split?
Where only part of a property is being sold, the title will usually be split at the point of final sale.
LANDOWNER QUESTIONS
Will you need access to my property?
Yes. Certain surveys and investigations may be required during the planning process. We will always provide at least 48 hours’ notice and arrange access at a convenient time.
Will selling part of my land affect the value of my home?
Every property is different. In many cases, any reduction in value is significantly outweighed by the value created through the land sale. We will discuss this with you during the assessment process.
If I need to move house, will there be enough time?
Yes. Where required, completion dates can often be structured to allow sufficient time for relocation.
EXPERIENCE & EXPERTISE
What experience do you have?
HPG Land works alongside experienced planning and development professionals with over 10 years’ experience in planning uplift and land development. We are happy to share examples of previous projects and successful outcomes.
TAX & CAPITAL GAINS TAX
Will I need to pay Capital Gains Tax (CGT)?
This depends on your personal circumstances. In many cases, relief may be available, particularly where the land forms part of your main residence. We always recommend speaking to a qualified tax adviser for advice specific to your situation.
Can you provide tax advice?
No. We are not tax specialists and cannot provide tax advice. We recommend seeking independent guidance from a qualified tax professional.
Do I need a CGT specialist?
Not always. However, some landowners choose to seek specialist advice for additional reassurance, particularly where larger transactions are involved.