Option agreement for land in Surrey
You grant us the right to buy within a set period, usually for an option premium, while we pursue planning.
An option agreement gives us the right, but not the obligation, to buy land within an agreed period, usually once planning is secured. The landowner is usually paid an option premium on signing and keeps the land meanwhile. On option agreements we pay the landowner's reasonable legal costs, with a cap agreed in the heads of terms.
Option agreement for land in Surrey
Option agreement is one of four ways we buy land in Surrey. Surrey is a county of commuter towns, including Woking, Guildford, Epsom, Reigate, Redhill, Camberley, Staines-upon-Thames and Farnham, and many villages. Most of the county is Metropolitan Green Belt, and the Surrey Hills and High Weald National Landscapes cover much of the south. Previously developed land, infill plots, garden and backland sites and grey belt are therefore central to housing supply, with larger sites usually allocated through local plans.
Heathland protection in the west of the county means many schemes contribute to mitigation for the Thames Basin Heaths, and flood risk from the Thames and Mole affects riverside towns. Stations on the lines into Waterloo and Victoria matter, as English planning policy now gives weight to locations near well-connected stations.
Where an English council cannot show a five-year supply of housing land, or its Housing Delivery Test result falls below 75%, the August 2026 NPPF can give policy support to suitable housing outside settlement boundaries.
The Planning and Infrastructure Act 2025 introduced Environmental Delivery Plans and a Nature Restoration Levy in England, which over time may offer an alternative to site-by-site mitigation for some environmental issues.
Parts of Surrey are Green Belt, though not every town has any nearby. We check early whether a site is inside it and, if so, whether a grey belt or previously developed land case could apply.
Parts of Surrey fall within Surrey Hills National Landscape and High Weald National Landscape. Protected landscapes carry strong policy protection, so land in or next to them needs particularly careful assessment.
In short: you grant us the right to buy within a set period, usually for an option premium, while we pursue planning. It usually suits farmland and larger edge-of-settlement sites; strategic land needing local plan promotion; owners happy to wait for a better price. See how an option agreement works for the full process, pros and cons.
Land in Surrey that often suits an option agreement
WantedResidential development land
Around Guildford, the residential land that tends to work is close to existing homes, shops and transport rather than out on its own. Suits larger or longer-term land where planning may take several years.
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WantedLand without planning permission
Near Guildford, land without planning is worth discussing where it adjoins existing homes or has been put forward to the council's plan. Suits bigger sites or longer timescales; you are paid a premium and keep the land meanwhile.
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WantedBrownfield land
In Guildford, the brownfield sites we look at are often tucked behind main roads or alongside older housing, close to services. Less common, but possible on larger regeneration land.
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WantedGarden and backland plots
In parts of Guildford with long gardens or rear lanes, backland plots can work well if the access is wide enough and neighbours are treated fairly. Helpful where several gardens are being combined over time.
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WantedGreen Belt and grey belt land
If you own Green Belt land in Surrey, its previous use and how enclosed it already is will shape whether a grey belt route exists. The common route: promoting Green Belt land can take time.
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WantedStrategic land
If you own a substantial holding near Guildford, the council's plan timetable will shape when and how it could be promoted. The standard route: we fund promotion and you are paid on sale.
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WantedSites with lapsed or refused planning
If a scheme near Guildford was refused or ran out of time, the officer's report usually shows what a better application would need. Suits larger sites needing a longer route.
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WantedAllocated and promoted land
We are interested in land around Guildford at any plan stage, from a first submission to an adopted allocation. Suits land at earlier plan stages.
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Option agreement: questions
How long do options last?
It varies with the site and the planning route, from a few years for smaller sites to longer for strategic land. Extension terms are often included.
How is the price worked out?
Commonly as market value with planning, less an agreed discount and allowable costs, often with a minimum price. Take independent advice on the mechanism.
What if you never exercise the option?
At the end of the option period the land is released, you normally keep the premium, and we remove our notice from your title.
Do you use option agreements for land in Surrey?
Yes. We use option agreements across Surrey and the rest of England, where the structure suits the site and the owner.