We have seen an increase in the number of clients being approached by developers wanting to promote their land for development.
One client, an elderly couple and their company, were approached by a developer wanting to promote their land for a large residential development. Under a promotion agreement a developer has the right to promote land as part of the local authority development plan, and to submit a planning application. Once planning consent is obtained and the land sold, the landowner and the developer share the net sale proceeds. It is vital to ensure that the landowner’s interests are adequately protected. In this case the promotion agreement had the potential to bind our clients’ land for up to 20 years. This had consequences for our client and their children when considering inheritance and tax issues.
We advised our client on their options and ensured that the agreement with the very experienced developer was fair.
Our experience of acting for developers promoting land meant we had a good understanding of both parties’ needs so we were well placed to steer the negotiations to a swift and fair conclusion.