United Kingdom
UK owners rarely need to sell cheap: a promotion agreement lets a specialist win planning at their cost, and you keep ~75–85% of the uplifted land value. Beware long option agreements that lock you in at a discount.
No numeric FAR — model density from precedent massing and daylight envelopes. Underwrite S106/CIL + Building Safety Levy (Oct 2026) and Gateway 2 programme risk on >18m schemes.
- Title system
- HM Land Registry registered title, state-guaranteed; freehold/leasehold (commonhold reform pending); Leasehold & Freehold Reform Act 2024 phasing in.
- Foreign ownership
- No restrictions; Register of Overseas Entities transparency mandatory; 2% SDLT non-resident surcharge.
- Authorities
- HM Land Registry + borough LPAs under the GLA London Plan; Building Safety Regulator for high-rise (>18m).
- Zoning metric
- No numeric FAR — discretionary, design-led 'optimisation'; density via massing, daylight tests, tall-building zones; value captured via S106 + CIL.
- Height control
- LVMF protected views; borough tall-building zones; typical schemes 6–12 storeys; City cluster ~290–310m.
- Building code
- Building Regulations + Approved Documents; Building Safety Act 2022 gateways for >18m; Eurocodes (BS EN).
- Approvals & timeline
- Pre-app → permission + S106 (12–24+ mo in London) → BSR Gateway 2 for high-rise (adds 6–12 mo). Planning & Infrastructure Act 2025 streamlining. (~12–30 months)
- Transfer taxes & fees
- SDLT to 12% + 2% non-resident + 5% additional dwelling; CIL (+Mayoral CIL) & S106; Building Safety Levy from Oct 2026.
- Foreign capital
- Fully open, deep institutional market; no golden visa; ATED on corporate-held homes.
Common JV structures
Land-as-Equity SPV
20–50%Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).
Promotion Agreement
70–85%A promoter funds the planning application at its own risk. On consent, the land is sold on the open market; the promoter recovers costs plus a fee (~15–30% of net proceeds) and the owner keeps the rest. Aligns both parties to maximise price.
Option Agreement
75–90%Developer pays a small option fee for the exclusive right (3–10 years) to buy the land after securing planning, at market value minus an agreed discount (typically 10–25%).
Forward Funding / Forward Sale
5–15%An institution buys the land day one and funds construction in draws (forward funding), or contracts to buy the completed building at a fixed price (forward sale). The developer earns a development margin; the owner usually exits cleanly at the land sale.
Landowner Mezzanine / Deferred Consideration
8–15%Owner sells to the developer's SPV but leaves 30–70% of the price in as a loan (second charge behind the senior lender) or as deferred payments tied to sales milestones — the owner becomes the project's mezzanine lender at ~8–15%.
- ⚠ Planning + Gateway 2 delay risk
- ⚠ Viability squeeze: affordable %, CIL, BSL
- ⚠ Prime-market tax drag
London is a top-5 global cost market; BSA gateways add programme risk.