The rise of the land promoter has been a good thing for farmers and landowners across the UK but whilst this holds true for the largest, most well-established and funded promoters, what about the raft of smaller companies that have sprung up ?
The danger here lies in the actual agreement itself as should the land promoter fail then it is worth bearing in mind the landowner may well have signed-up to perhaps a 5 or 10 year (or the ever popular '5y+5yr+5yr' land promotion agreement) period and as such if the land promoter goes into bankruptcy then what are the legal implications for whether the deal can be transferred ?
The Option Agreement does not have this problem and is of course usually taken out with a large, well funded plc housebuilder.
But with the potential ahead for economic problems in the UK, should unemployment rise significantly and / interest rates climb then house sales will suffer and the housebuilders will reduce their need for buying land from land promoters - can smaller land promoters really carry the cost of perhaps several large planning applications with no realistic end sale result in sight ?
If you are concerned about entering into a land promotion agreement or an option agreement with a land promoter or house builder and selling your land in this manner then do call John or Marianne at Landsite (www.landsite.co.uk) on 07971 389985 0r 01527 328401 and firstname.lastname@example.org.