Residential Development

Even if a developer is applying pressure on your to sign an agreement, you should never sign before seeking professional advice.

Your land is a valuable asset and you should always consult a professional before signing any agreement.

If you are being pressurised to sign something, please feel free to telephone us and we can provide immediate initial advice to you.

In relation to property, Heads of Terms (HoTs) outline the main points and intentions for a lease or purchase agreement before a formal contract is drawn up.

They can specify terms like rent, duration, responsibilities for repairs and maintenance, break clauses, and other key lease or sale conditions. 

They should set out all the key details relating to the amount of land being sold, the valuation method for that land, and the timings for the transaction.

They would normally be prepared by a land agent or surveyor.

An option agreement is a contract between you and a developer that allows the developer to buy the property under set terms within a defined time frame.

Sometimes the developer will pay a fixed fee to you for entering into the option agreement.

Under an option agreement, you have no guarantee that the land will be sold to the developer during the option period.

A conditional contract obligates both parties to the sale and purchase of the property, contingent upon specific conditions being met.

In residential property development, the primary condition typically pertains to obtaining planning permission for the intended residential project.

If these conditions are met under a conditional contract, both parties are committed to finalising the sale and purchase of the property.

Whether you enter into an option agreement or a conditional contract, the payment of an option fee and coverage of your professional costs depends on the terms negotiated between you and the developer. However, many landowners are able to agree option fees.

These fees may serve as compensation for limiting your ability to sell your property to others during the duration of the option agreement and for any other constraints the developer places on your property use.

Frequently, landowners successfully negotiate for the developer to cover all or a portion of their professional expenses related to the option agreement or conditional contract. Such negotiations are typically handled by their land agent or surveyor on their behalf.

Myerson Solicitors have experience working with many property professionals including specialists in the sale of land which has potential for residential development.

We can make recommendations to you of professionals who might be suitable so that you can speak to them and decide whether or not you would like to ask them to act on your behalf.

The decision as to who you wish to act on your behalf is entirely yours.

Developers often seek access to land before a contract is formally exchanged.

This preliminary access allows them to undertake various investigations and assessments to ensure the land is suitable for their intended development.

Access would normally be granted to the developer in a licence document, which would include restrictions on when the land can be accessed.

It would also include obligations on the developer to make good any damage caused during the investigations.

Overage, often referred to as "clawback", is a provision in a land sale agreement. It entitles the seller to receive additional payment from the buyer if certain specified future events occur that increase the value of the land.

The intent is to allow the original seller to share in the enhanced value of the land, especially if it becomes more valuable due to events like obtaining planning permission.

The most common condition for the trigger of an overage payment is often the approval of planning permission for property development.

Restrictive covenants are legally binding conditions or restrictions written into the deeds or title of a property, which limit how the land or property can be used or what can be built upon it. They are typically intended to protect the value and enjoyment of adjoining properties.

Common restrictive covenants might require that the land is not used other than, for example, agricultural use.

Myerson's property solicitors can examine and advise on the title to the property and discuss with you the best approach to take to deal with such covenants.

Other title issues that might be of relevance would include access to the property, and the effect of an increase in use of an existing right of way or right to use service media which run through the land.

Myerson Solicitors acts for landowners all over England and Wales and will be able to assist you no matter where you are within those countries.

Housing development offers several advantages, both for communities and economies.

Here are some of the primary benefits:

1. Meeting Housing Demand: One of the most direct advantages is that it addresses housing shortages, ensuring that growing populations have places to live.

2. Economic Growth: Housing developments often lead to job creation, both directly within the construction industry and indirectly in related sectors such as real estate, finance, and retail.

3.Infrastructure Development: With new housing projects, there often comes improved infrastructure, such as roads, water, sewage, and utilities, which can benefit the broader community.

4. Increased Property Values: Properly planned and executed developments can increase the value of surrounding properties by enhancing the appeal of the area.

5. Community Amenities: New housing developments often incorporate parks, schools, and shopping centres, which can add value to the lives of the residents and surrounding community.

6. Urban Regeneration: Housing developments can breathe new life into decaying urban areas, turning neglected zones into vibrant communities.

7. Diverse Housing Options: Developments can provide a range of housing options catering to various socio-economic groups, allowing for mixed communities that cater to both renters and homeowners.

8. Increased Local Revenue: New developments can lead to increased tax revenues for local governments, which can then be reinvested in public services.

9. Sustainable Development: Modern housing projects often emphasise sustainability, incorporating energy-efficient designs, green spaces, and sustainable materials, which can lead to long-term environmental benefits.

10. Land Utilisation: Proper housing development can make efficient use of land, especially in areas where land is scarce.

It's important to note that while there are many advantages, housing development also poses challenges and potential downsides, especially if not managed and planned carefully.