WHY A PROMOTION AGREEMENT AND NOT AN OPTION AGREEMENT?
A Promotion Agreement is heavily weighted in favour of the landowner, who retains control of the process. With an Option Agreement, the landowner is told when and for how much the site would be purchased, but has little or no input into that process.
WHAT IS THE FINANCIAL COST?
The cost of the process to the landowner is zero as Bowbridge Land shoulders all of the costs. All reports and surveys conducted as part of the planning process are assignable to the eventual purchaser.
HOW IS BOWBRIDGE LAND PAID?
Bowbridge Land’s fees are only payable after planning permission has been granted and your solicitor has completed the sale of the land to a housebuilder. We are then paid a pre-agreed percentage of the sale price directly by your solicitor from the proceeds of the sale. As landowner, you will receive the majority of these proceeds.
WHAT WILL BE APPLIED FOR?
The most valuable land use is for housing so in the majority of cases this is what we will seek permission for. Included within this there will be appropriate open spaces and landscaping. For larger schemes it may also be necessary to include community facilities to support the housing, uses such as shops, doctors’ surgery, educational facilities etc. if the local area does not have these already.
WHAT IS THE TIMESCALE FOR A PLANNING APPLICATION TO BE SUBMITTED AND DETERMINED?
Bowbridge Land will typically submit a planning application within 4 to 6 months of a Promotion Agreement being entered into. This allows time for the collation of the large number of surveys and reports that are required to accompany a major planning application. Under the present system, planning authorities have 13 weeks to determine a major application. However, this can be extended if the application is decided by the planning committee or if an appeal is necessary.
WHAT IF MARKET CONDITIONS ARE POOR AT THE TIME OF SELLING?
The sales process may be deferred for an agreed period of time as agreed within the Marketing Strategy (part of the Promotion Agreement). This flexibility is not available with an Option Agreement as they are geared more towards the purchaser, who will exercise their option to purchase at a time most convenient to themselves.