FAQ
The land promoter, e.g; Elberry, will typically fund the initial planning and promotion costs. If planning permission is obtained, the parties would agree on a marketing strategy for the land to ensure that the value is maximised. Once a buyer is found your solicitor would handle the sale and once the land is sold, the promoter’s planning costs are reimbursed to the promoter from the gross sale proceeds. The promoter will then receive a pre-agreed proportion of the net sale proceeds according to the level of risk.
The promoter uses their knowledge, resources and expertise to manage the planning process, thereby removing the risk for the land owner and increasing the chance that planning permission will be granted. The owner and the promoter then both share the increase in the value of the land when planning permission is obtained and a sale is completed.
An option agreement will ensure you share in the uplift in value of your land if planning permission is granted in future. Elberry frequently enter into these agreements whereby we use our resources and expertise at no risk or cost to you to obtain planning permission and maximise the value of your land. Once satisfactory planning permission is granted we pay the agreed price for the land, which will be substantially more than the value of your land without planning permission.
A conditional contract imposes an obligation on us to seek planning permission for your land, whereby we use our resources and expertise at no risk or cost to you. If planning permission is granted we are obliged to purchase the land unless there are any adverse planning conditions.
Once we have entered into an agreement with you we will either undertake to promote your land to secure a site allocation in the Local Plan or, if your land has already been allocated or is within the settlement boundary we would seek to make a planning application as soon as is practical.
The time it takes for your land to be allocated in the Local Plan will vary depending on the location, Local Authority and the specific circumstances applicable to your land. Once we are ready to proceed with a planning application, it normally takes approximately 3-6 months to produce all surveys and reports required for the planning application to be submitted, however, this might take longer subject to site specifics and time of year.
Most planning applications are decided within 8 to 13 weeks, unless they are unusually large or complex in which case the time limit is extended
Once a satisfactory planning consent has been granted completion will take place in accordance with the terms of our legal agreement.
As a guide small sites that do not have too many complexities typically take between 12 – 24 months to complete, whereas larger strategic sites can take between 2 – 10 years to complete.
It is not uncommon for the planning costs for larger sites to exceed £100,000 and this can double if an appeal is required.
All costs relating to the land promotion and planning application will be paid for initially by Elberry. If planning permission is not granted or the land is not sold then Elberry does not get repaid the costs incurred. If planning is granted and the land is sold then the reasonable promotion costs are repaid to us out of the sale proceeds.
Where you enter into a land promotion agreement with Elberry we contribute to your reasonable legal fees.
Whilst we endeavour to achieve planning permission locally, there are occasions when this cannot be achieved. If the site is refused permission, then we will represent you at the appeal.
The appeal will usually take the form of an Inquiry or an Informal Hearing, which takes place at a venue close to the site. Together with a selection of expert witnesses and a Barrister (if required), we will produce robust and detailed evidence and attend the appeal to present the evidence to and independent Planning Inspector. These costs will be paid for by Elberry.
Along with the application form, the applicant is required to submit a number of surveys and reports to support their application. The type and number of documents may vary subject to the specifics of the site.
