Option agreement

A legal agreement between a landowner and developer that gives the developer the right, but not the obligation, to take a lease of the land in future. In the UK, option agreements usually last three to seven years (though this can vary). During this time, the developer will try to secure planning permission, a grid connection, and financing. For landowners, the key point is that while the option is live, the land is effectively tied up. This means you can’t lease it to another developer. include deadlines and milestones, so your land doesn’t get trapped in a stalled project.