What is a Promotion Agreement?

A promotion agreement is when a land promoter, or in our case a developer, applies for planning permission on the landowners property, on his or her behalf. Once the planning permission has been obtained, the property is then marketed to prospective developers and house builders on the open market. 

The land promoter funds the initial costs associated with the planning process, which are reimbursed from the land sale proceeds

The Benefits

• The promotors interests and yours are aligned throughout the process, unlike an option agreement.

• It is in the land promoters best interest to optimise the value of your land by minimising the costs of affordable housing and the S106 contributions, as they take a percentage of the final land sale proceeds.

• The promotion agreement can be tailored to suit you and your objectives - you can be as involved (or not) as you wish.

• Both parties together, strive to achieve the most valuable scheme to sell into the open market. Planning permission is sought prior to marketing, which maximises your returns as it creates a more valuable asset.

• Any financial risk relating to the planning application process are reduced, and all the fees associated with the planning process and site’s marketing are paid by the land promoter.

How it work in six simple steps

1

We meet with the landowners to discuss the structure of the agreement and the objectives of all parties.

2

We, as the land promoter, will undertake initial site investigations and various due diligence reports. These can include travel assessments, design and access statements, landscape and visual impact assessments, ecology reports and flood risk assessments 

3

Pre-application discussion with the local planning authority will then normally take place. Feedback from these meetings will help develop the masterplan for your site

4

A planning application for a residential or mixed use scheme will be submitted for approval of the local authority. If the applicant is refused, a solution strategy will be developed and providing there is a good case, an appeal against the refusal or a revised planning application will be submitted. Over 80% of planning applications that go to appeal are successful

5

We will then market the site for sale, via a selling agent, to potential developers and house builders. We will ensure the production of a detailed tender pack and invite bids from interested parties. we will also help you to identify a preferred purchaser, and prepare heads of terms

6

The legal process for the sale takes place, the purchaser completes on the sale and you receive the final receipt for your land. We receive our promoters commission as agreed