The Rise of Promotion Agreements for Development Land

At Lawson West Solicitors, we have noticed more landowners entering into Promotion Agreements when selling land for development, instead of traditional methods such as Option Agreements or Overage/Uplift Agreements.

Based on feedback from the planning and land agents we work with, Promotion Agreements are seen as more collaborative.  With Option and Overage Agreements, the purchase price needs to be negotiated, often leading to a conflict: developers aim to minimise the amount they pay, while landowners want to maximise the sale price . They will include a mechanism to settle the purchase price – however, the process can take time and as we know, time is money.

With Promotion Agreements, both parties share the final sale price of the land after planning permission has been secured. This mutual goal aligns the interests of the landowner and the developer.

Are Promotion Agreements Always the Best Option?

Whilst Promotion Agreements are becoming more popular, they may not always be the best choice for every landowner. Depending on the landowner’s circumstances, Option or Overage Agreements could still lead to better outcomes. We always advise landowners consult with an experienced land or planning agent to evaluate all available options and secure the best deal for them.

Tax implications are also key. At Lawson West Solicitors, we work closely with other professional advisers to ensure our clients achieve the best outcomes.

If you're a landowner considering selling your land for development, contact our Commercial Property Team to discuss your needs and find the best solution for you.

Please call us on 0116 212 1000, or complete our free Contact Us form and we will get in touch as soon as possible.

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