Selling a site subject to planning means agreeing a sale now that completes only if planning permission is granted. The buyer pays for and runs the application. If consent is granted, the sale goes through at the agreed price; if it is refused, the deal falls away and you keep your land. The detail is in the terms you agree before you sign.
Why landowners choose it
Land with planning permission is usually worth more than land without it. Selling subject to planning lets you share in that uplift without paying for architects, consultants and planning fees yourself, and without carrying the risk of a refusal. The trade-off is time: you will wait for the planning process before you are paid in full.
How it compares with the alternatives
- Unconditional sale. You sell as the site is today, for a price that reflects its current planning position. Quick and certain, but you leave the planning uplift to the buyer.
- Sale subject to planning (a conditional contract). Contracts are exchanged now; completion depends on planning. The price is fixed, or set by a formula, in advance.
- Option agreement. The developer pays for the right, but not the obligation, to buy within a set period. Common on larger and longer-term sites.
- Joint venture. You keep an interest in the scheme and share in its profit, taking part of the development risk in return for part of the upside.
The terms that matter
- What counts as "satisfactory" planning. The contract should define the scheme the buyer will apply for, and which conditions or obligations would let the buyer walk away. Too loose a definition gives the buyer an easy exit.
- The long-stop date. The date by which consent must be achieved, after which either side can end the contract. Make sure it allows for a realistic timetable, including any appeal.
- Appeals and challenges. Who decides whether to appeal a refusal, and who pays. Whether the sale waits for the period in which a permission can be challenged in court to pass.
- Price. A fixed price, or a formula linked to what is consented, such as a price per home or per square foot. A minimum price protects you if the consent is smaller than hoped.
- Overage. An extra payment if the buyer later secures a better permission, within an agreed period.
- A deposit. Paid on exchange, and whether it is returnable if planning fails.
- Your obligations meanwhile. What you may and may not do with the site while the application runs, including letting it or granting rights over it.
What to have ready
Your title documents, any planning history for the site, details of tenants or occupiers, and anything you know about access, rights of way, drainage or contamination. The more a buyer knows at the start, the firmer its offer can be.
A note on advice
A conditional contract is a legal document with real consequences for you. Use your own solicitor, and a planning consultant or agent if the site is significant. There may also be tax consequences depending on how and when you are paid, so speak to a tax adviser before you sign.
We buy London sites worth between £1m and £20m outright, in a joint venture, or subject to planning. See how we work with landowners, or tell us about the site.