Property Development Solicitors

Property Development Solicitors

If you are looking to buy land or buildings to develop or develop your own land or buildings, our commercial property solicitors can help to make sure that the legal decisions made along the way are the right ones.

We will ensure that our team is on hand to advise you on how to protect your interest in relation to property development, including support with different types of contracts.

Our advice will be honest, straightforward and designed to help you achieve the outcome you seek from your development.

What is an option agreement?

An option agreement gives the buyer the option to buy land from a seller for a limited period.

This can be useful if you want to develop the land once planning permission has been granted and avoid becoming the owner of land which can’t be developed the way you intended.

Typically, an agreed payment is made by the buyer to the seller in exchange for binding the land with an option agreement.

During the limited period the buyer can apply for planning permission for that land and if granted they can exercise the option to buy the land or allow the option to lapse if planning permission is denied.

What is a conditional sale contract?

This is a contract to sell land to a buyer on the condition that the buyer will apply for or successfully obtain planning permission for the land.

If the buyer does not obtain planning permission, then the sale of land will not be completed.

The contract should include details on what the condition is, who needs to satisfy it, how long the party has to satisfy the condition, who will decide whether the condition has been met and whether the parties will share the cost arising from the party satisfying the condition.

Do I need planning permission to develop land or buildings?

Planning permission is usually required if you are building a new dwelling, even if it is on your land.

Some builds such as smaller additions and improvements might fall under Permitted Development which is an implied consent for builds that meet requirements.

However, it is important to check with your local authority before you start building without planning permission and obtain a Lawful Development Certificate as proof that the development was legal at the time of building.

How do I finance a commercial property development?

There are several options for financing a commercial property development including entering a joint venture with a party that is willing to financially contribute, entering a limited liability partnership with a party willing to financially contribute, using equity finance by issuing new shares in your company, or obtaining a loan.

Loans tend to be based on a stage release basis. The initial release of funds is usually only a percentage of the total facility.

When the site has been acquired and the initial loan made, the remainder of the loan is paid out in stages as the building progresses.

The types of commercial development finance available are:

• Building to sell-the loan application will depend on the saleability of the units being built
• Building to hold-if you are planning to hold the build as an investment the lender will look at the rentability of the properties being built, and your ability to secure finance for it when let. Where some or all units have been pre-let it’s more likely your application will be successful
• Building for your own business-the lender will focus on your ability to secure a commercial mortgage once the property is built

Who can I sell my commercial property land to?

You can sell your land to an individual, a company, a joint venture, or a partnership.

Depending on who you sell to, you may need to draw up certain contracts such as a conditional sale contract or option agreement in which case it can be helpful to instruct a Commercial Property solicitor who will be able to advise you on which contracts and provisions you will need and help you draw them up.

Why use Rothera Bray for property development?

We help clients with all legal details in property development, including:

• Options and conditional contracts
• Investigation of sites – checking legal title, restrictive covenants and rights of third parties, and relevant searches
• Assistance with funding – reporting to your lender on the title; liaising with any other professionals involved, such as the lender’s valuer
• Overage provisions – an agreement by a buyer, typically of undeveloped land, to pay a further sum of money to the seller if certain situations arise. A seller often wishes to reserve a right to that further sum on very strict terms, and a buyer needs to ensure the provisions are not so stringent as to blight the land
• Agreements with service providers – liaising with the relevant company or authority on easements, wayleaves and Section 104 agreements.