FAQs Pembar Land
What is an Option agreement?
An Option agreement is a binding contract between the landowner and the land buyer where the buyer has the option to purchase the land within a certain time frame subject to planning. The option agreement will fully set out the agreed promotion strategy. Some sites may be required to be promoted through a local plan with view to obtaining an allocation for development before a plan application is made. In other cases, it may be appropriate to submit a policy complaint planning application. We will also consider alternatives to obtaining planning consent, such as a five year housing land supply. Our promotion strategy is individually tailored to each site to ensure we achieve the best outcome.
What will you offer me?
Following the site visit with you, we will work with our team of specialist planners and architects to draft a proposed scheme. Once this has been complete, we will be back in touch to discuss the offer (4-6 weeks). We may ask for an indication of your expectation beforehand.
Will the offer price be agreed before the option agreement?
Yes
Will the option agreement price change?
No this will be written into the Option Agreement and will be the amount you receive at the final point of sale.
Can you offer a cash / outright purchase?
Typically, we do not offer cash- purchase options as there is always an element with any site. Whilst we only offer on sites we are confident in, the Option agreement is our preferred method of purchase.
How long with the Option Agreement last ?
Typically, we will enter into a 12 month option agreement with you, with a 6 month extension option should we need to submit a planning application or deal with unforeseen circumstances.
Could the deal be done in less than 12 months ?
Yes, we aim for 12 with 18 months as a worst case scenario but typically we look to get planning before this. We will keep you informed on key stage of progress throughout the process but have the right to exercise Option Agreement as soon as planning has been approved.
Do I need to instruct a solicitor ?
Yes, you will need to instruct a Commercial solicitor who understands Options Agreements. We can offer recommendations.
Will I be able to stipulate my conditions before I sign the option agreement?
Yes
Can I see the final draft of the option agreement before I sign it ?
Yes, as many times as you require
How long will it take to sign to option agreement?
This depends on the complexity of the scheme. It could be as little as 4 months or up to 12 months.
How much will I have to pay?
You will not have to pay anything. We will cover your legal costs up to £2500 (plus VAT) and all planning costs.
Will there be much paperwork ?
You will need to satisfy yourself that you have read and understood the Option Agreement and the Transfer Deed. Your solicitor will help with this. You will also be asked to fill in a Standard TA6 Property Information Form and an Additional Development Enquires Form. Item description
Will you need access to my property after the options agreement is signed ?
Yes, we will need to liaise with you for relevant searches and investigations to be carried out. These will include (but may not be limited to) a Topographical Survey, an Ecology Survey and a Site investigation. We will give 48 hours notice for any site visit required.
Will I need permission from my mortgage lender?
Yes, if you have a mortgage and you are entering into an agreement to sell part of your title, you will need to contact your lender to get permission. If you are selling your full title, we still advise speaking to your lender for clarification.
When will you submit the planning application?
We will aim to submit the planning application within 4 months of the option agreement being signed and exchanged.
How long will it take the council to decide whether or not to grant planning ?
A council will usually make their decision within 12-16 weeks, but this can differ from region to region.
When will you sell to a developer?
We will start marketing your land to our network of developers during the planning application process. We will aim to have a buyer in place as soon as the planning is granted.
I did not know my land had value, can I not take it through planning myself and get the full value for the land after planning ?
It is possible to take your land through planning but without the level of expertise and the the right professionals this is. high risk strategy and may not be sucessful. Due to our extensive experience working in this area we will offer you the best price for your land but for the application to be successful industry experience is necessary.
If I am selling the land, when will the titles be split ?
The titles will be split at the point of final sale.
Will this decrease the value of my house?
The value of your house won't be affected, as houses are valued on the price per square foot metre of the property itself. Then maybe a small reduction in what your overall estate may be worth to the buyer. However, the offer price for your land will far outweigh any potential loss.
If we move house, will we have time to do this?
Yes, we can arrange for there to be a delay between financial exchange and completion of sale.
What happens if we get planning permission but can not sell it ?
We will have no choice but to withdraw from the option agreement, but you will then own land with planning permission on it and be free to do with it as you please.
Will I have to pay capital gains tax?
This will depend on your personal circumstances, and we always advise that our customers speak to a capital gains tax specialist even sure. But here is what the HMRC are saying:
You will be entitled to full relief where all the following conditions are met:
The dwelling house has been your only or main residents throughout your period of ownership.
You have not been absent, other than for an allowed period of absence or because you have been living in job related accommodation, during your period of ownership.
The garden or grounds including the buildings on them are not greater than the permitted area (the area of garden and grounds of the persons residence that qualifies for relief is referred to in the legislation as a permitted area. The permitted area includes the site of dwelling house S222 (2) close brackets TCGA 92 defines the permitted area as 0.5 hectors. If the garden and grounds of the residents, including the site of the dwelling house, do not exceed the permitted area then relief is automatically due for the whole area)
No part of your home has been used exclusively for business purposes during your period of ownership. Working from home using a room that is also used for non-business purposes would not prevent entitlement to relief.
If you meet all of these conditions you will not have to pay CGT on the disposal.