Option agreement for land in the West Midlands
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 the West Midlands
Option agreement is one of four ways we buy land in the West Midlands. The West Midlands county is a dense conurbation of Birmingham, Wolverhampton, Coventry, Solihull, Walsall, Dudley and the Black Country towns. Green Belt surrounds and separates parts of the conurbation, including the Meriden Gap between Birmingham and Coventry, so most housing comes from previously developed land: former industrial and canal-side sites, yards, garage courts and town centres. Grey belt and small fringe sites around Sutton Coldfield, Solihull and Aldridge can also come forward.
Metro tram extensions, the High Speed 2 stations at Curzon Street and Interchange, and suburban rail lines are a focus for higher-density homes. Former industrial land often needs contamination and ground investigation, and the Black Country's mining and limestone legacy means ground stability checks are common.
In England, a planning permission normally has to be implemented within three years unless the council sets a different period, and councils aim to decide minor applications within eight weeks and major ones within thirteen.
English councils keep brownfield land registers, and some previously developed sites can be granted permission in principle, a quicker way of establishing whether housing is acceptable before technical details are settled.
Some land in the West Midlands is designated Green Belt. If your land is within it, it may still qualify as grey belt or previously developed land under national policy, subject to the Golden Rules.
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 the West Midlands that often suits an option agreement
WantedLand without planning permission
For land on the edges of Birmingham with no consent yet, the first questions are access, flood risk and how the council's current plan treats the area. Suits bigger sites or longer timescales; you are paid a premium and keep the land meanwhile.
Learn more
WantedBrownfield land
Brownfield land in Birmingham tends to be well located for homes; the questions are usually about contamination, demolition and neighbours. Less common, but possible on larger regeneration land.
Learn more
WantedGarden and backland plots
Around Birmingham, garden land is most promising where a lane already runs behind the houses or two or three neighbours can sell together. Helpful where several gardens are being combined over time.
Learn more
WantedGreen Belt and grey belt land
Where Green Belt land in the West Midlands is already hemmed in by roads or existing homes, a grey belt case may be worth testing. The common route: promoting Green Belt land can take time.
Learn more
WantedStrategic land
Larger landholdings on the approaches to Birmingham are where strategic land usually comes from, particularly near transport links. The standard route: we fund promotion and you are paid on sale.
Learn more
WantedCommercial and industrial sites
Older business land around Birmingham, especially units now surrounded by housing, is the kind of commercial site we would like to discuss. Possible for larger estates being phased out.
Learn more
WantedSites with lapsed or refused planning
We read the planning history of sites across Birmingham closely; a past refusal often points straight to the fix. Suits larger sites needing a longer route.
Learn more
WantedAllocated and promoted land
Around Birmingham, allocated sites and land put forward to the council are usually the furthest along, so they can often move faster than land at an earlier stage. Suits land at earlier plan stages.
Learn moreTowns we cover in the West Midlands
Option agreement: questions
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.
Do you really pay my legal costs?
On option agreements we pay the landowner's reasonable legal costs, up to a cap that we agree in the heads of terms.
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 the West Midlands?
Yes. We use option agreements across the West Midlands and the rest of England, where the structure suits the site and the owner.