There are four steps to our land promotion process:
- We hold an initial meeting with the landowner and community stakeholders to discuss our recommended approach.
- If the landowner is interested in working with us then we will send a formal proposal. This will set out an agreed common goal, contract length and our success fee.
- Once agreed we will get formal contracts drawn up and the project begins.
- We work tirelessly until we secure the best planning permission we can for the landowner and local community.
Frequently asked questions
What is Land Promotion?
Land Promotion is the securing of planning permission (or Local Plan site allocation) for a site resulting in an increase in its value. The process is generally fully funded by the land promoter.
How do I know if my land is suitable for development?
Generally speaking, sites within or adjoining a settlement, with good access and a range of local services may be considered as having some potential for development. There are however a wide range of other factors to be considered from environmental, social and transportation issues to local politics and the planning policy position.
Context undertakes initial research to determine whether a site might be suitable to work on. There is no obligation to proceed with us and we will always be straightforward and upfront with our findings.
Why choose Context?
Context’s team come from a planning background, we know how to work with Local Authorities and the Planning Inspectorate to obtain planning permissions whether it’s a straightforward application or one that requires multiple complex supporting studies and delicate negotiations.
We are a wholly independent land promotion company. We have no affiliation with any house builders and we do not develop sites ourselves. Through our Land Promotion Agreements, we work together with clients, in partnership, to achieve the best results for their site. It is in our interests to obtain the most suitable planning permission and release the value of the land - we don’t get paid until a site is sold.
As a family run business it is important to us that we enable responsible and sustainable development that will enhance the communities they are a part of.
How is the land sold after permission is granted?
Context will work with land agents to secure a sale that is mutually beneficial for the landowner and us. We work closely with our clients to ensure the right developer obtains the site. It is not necessarily the highest offer that will be the right fit but we always ensure the deal represents good value for you the landowner.
How is the success fee calculated?
Once planning permission is secured we generally seek reimbursement of costs plus a % of uplift in land value. This is only payable upon sale of land.
What is uplift?
The uplift formula is simple:
Uplift = the sale price of the land with planning permission (MINUS) the current land value.
What % of uplift will Context take?
A range of between 15% and 25% is common. It varies due to the project length and risks.
- Your land is currently worth £100,000.
- We achieve planning permission for 5 new homes incurring professional fees of £50,000.
- The land is now valued at £500,000.
- This means there has been an uplift in land value of £400,000 (£500,000 – £100,000).
- Upon sale we would seek reimbursement of our professional fees (£50,000) plus 15% of uplift (£60,000).
What does the Context funding cover?
We cover all fees involving the planning and sales process. This includes items such as:
- Planning services
- Architectural services
- Legal fees
- Planning application fees
- Surveying fees
- Third party fees (such as transport, ecology, drainage, landscape etc)
- Consultation fees
What happens if Context fail to achieve planning permission during the contract period?
If we fail you pay nothing.
When is the success fee paid?
Our success fee is paid upon sale of the land. We generally aim for the sale of the site to take place within 6 months of securing permission, but if the market is slow then our contracts allow up to 2 years to sell the site if needed.
How long will it take to secure the planning permission?
Most of our projects take 2-3 years. This allows for engagement in the Local Plan process, effective public consultations, and a couple of planning applications if necessary.
However, some larger strategic sites may be 10+ years, and more straightforward sites could be completed within 12 months.