Land promotion agreements or planning promotion agreements have become more widespread in recent years, and potentially more popular than straight option agreements.
What is a promotion agreement?
A typical promotion agreement usually involves a developer agreeing to promote the landowner's property for development. This can include working to obtain planning permission and once permission is granted marketing the property for sale with all the associated permissions.
The promotion agreement can cover the costs of achieving planning permissions, the relative shares of increased sale values as a result of the planned developments and various options for who will be completing the development.
They therefore can assist landowners in facilitating complex transactions and spreading the upfront costs and resulting returns, thus reducing risk. Large scale developments can take a number of years to complete and landowners often do not have the resources or time to pursue them, hence the merits of suitably negotiated promotion agreements.
We have the relevant expertise and many years experience in completing these agreements on behalf of both landowners and developers. Most importantly we give real practical advice and work hard to negotiate the right terms for your business, whilst ensuring all parties can move forward with the plans in an effective way. In addition, with a specialist team of planning lawyers we offer this extra dimension that many legal firms simply do not have.
Large scale developments can change the future direction of rural businesses and therefore advice regarding the business structure may also be important. Our corporate lawyers can provide assistance with the necessary changes and importantly the tax implications. We also provide advice for succession planning and inheritance tax planning resulting from future changes.