Discussion
Hobo said:
Don't think a 'land clawback' would work particularly well unfortunately as the purchaser, when applying for planning, would look to make the most of the area which wasn't to be given back & as such may put what could be built onto the other area at risk.
I would suggest the following options:
a) Simplest. A standard clawback via a % of increase in planning upon reciept of such
b) Ransom strip as suggested by Sam68
or
c) Dont sell & hold on until it gets planning. This is ultimately the only way to maximise the worth.
You can't have it all ways unfortunately. Who's to say the land will get planning in the next 50 years ? If not then I suspect you're parent will see no benefit at all. If they want/need the money then take option a) or b), if not then c) & pass it down the family until it inevitably gains approval.
An employee of mine has just inherited 7 acres of greenbelt himself which has been in his family for decades. He has chosen to give 'exclusivity' to a developer for a couple of years with an agreed sale price of £millions should planning be approval during this period.
Whilst JohnFM may have been a little 'direct' he his ultimately correct. Why should they have it a win/win situation if they do not have the time/skill/intent to achieve planning themselves ?
Some good advice here.I would suggest the following options:
a) Simplest. A standard clawback via a % of increase in planning upon reciept of such
b) Ransom strip as suggested by Sam68
or
c) Dont sell & hold on until it gets planning. This is ultimately the only way to maximise the worth.
You can't have it all ways unfortunately. Who's to say the land will get planning in the next 50 years ? If not then I suspect you're parent will see no benefit at all. If they want/need the money then take option a) or b), if not then c) & pass it down the family until it inevitably gains approval.
An employee of mine has just inherited 7 acres of greenbelt himself which has been in his family for decades. He has chosen to give 'exclusivity' to a developer for a couple of years with an agreed sale price of £millions should planning be approval during this period.
Whilst JohnFM may have been a little 'direct' he his ultimately correct. Why should they have it a win/win situation if they do not have the time/skill/intent to achieve planning themselves ?
However, if you genuinely have no desire to go through the planning process then you can sell the land with a clause (timed) that ensures that x% of profit arising from development (commercial or residential) returns to you. Fairly common practice, particularly in green belt areas.
We have some land under an Option with a developer, for a period of time.
They continually monitor the market and will apply for planning permission whenever they think that the time is right.
Under the Option Agreement, they then have to buy the land at the then full market value, on getting any planning approval, or it can be sold to another developer.
They continually monitor the market and will apply for planning permission whenever they think that the time is right.
Under the Option Agreement, they then have to buy the land at the then full market value, on getting any planning approval, or it can be sold to another developer.
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