Linking Landowners with Investors & Developers
A Promotional Agreement is where a funder, who is not normally a house builder, funds the entire cost of the planning application for the landowner, at the Promoter’s risk. In return the Landowner is paid a fee for the length of the Promotional Agreement and agrees that they will sell the site once planning permission is secured. The Promoter typically takes between 10% to 20% of the share of the actual sale price for the site. The Landowner’s Agent is always appointed to sell the land subject to planning so there is transparency to all parties if the site is offered for sale. The Promoter’s share varies depending on the size and location of the site as well as the chances of success. A Promotional Agreement will be bespoken to the Landowner’s individual circumstances, but will always include:
- A minimum value which if not achieved freezes the land sale until prices improve, this is in case the land is sold in a recession.
- A cap on the amount of money the Promoter can spend on obtaining planning permission.
- A tax freeze clause in case capital taxations or other taxes that the Landowner will have to pay go over 50%.
- Landowner prior written approval of the planning application, third party land costs, abnormal land costs and watching brief of the planning application process.
- The length of time the Promoter has to successfully secure planning permission.
- An obligation on the Promoter to maximise the value of the land.
- An overage clause to cover improvements to the planning consent.
- As well as other conditions to look after the Landowner’s interests.
The advantages are that both the Landowner and the Promoter’s interests are aligned because the Promoter’s return is a share of the selling price for the site, their motivation is the same as the Landowner’s which is to maximise the value of the land.
WebbPaton keep an up to date list of developers and investors looking for both short and long term strategic land. WebbPaton have in recent years successfully negotiated Promotional Agreement Terms with pension funds, city institutions, private investors and nationally recognised property fund managers.
In recent years WebbPaton clients with 1 acre or 750 acres have entered into Promotional Agreements on sites in Priory Vale, Wichelstowe, Blunsdon, Wanborough, Purton, Lydiard Tregoze, Lydiard Millicent, South Marston, Washpool, Blunsdon, The Pry, Cirencester, Tetbury, Highworth, Faringdon, Melksham, Chippenham, Calne, Lyneham, Devizes, Warminster, Trowbridge, Malmesbury, Cricklade, Witney, Wantage, Kingston Bagpuize, Shrivenham, Royal Wootton Bassett, Swindon , Wiltshire, Buckinghamshire, Milton Keynes, Oxfordshire, Gloucestershire and Berkshire.
With WebbPaton’s office conveniently located on the M4 corridor by Junction 16 on the outskirts of Swindon, we are well placed to look after clients with land in the villages and market towns of Wiltshire, Oxfordshire, Gloucestershire and Berkshire.
WebbPaton keep abreast of both the national and local planning policies affecting Swindon Borough Council, Wiltshire Council, Vale of White Horse District Council, West Berkshire District Council, South Oxfordshire District Council, Cherwell District Council, Bath and North East Somerset District Council, and Cotswold District Council. If you want to invest in strategic land or development land in Newbury, Wantage, Calne, Lyneham, Devizes, Royal Wootton Bassett, Chippenham, Hungerford, Swindon, Highworth, Malmesbury, Cricklade, Faringdon, Cirencester, or Marlborough or any of the villages in between please call our development team to discuss.