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ARTICLE · 17 DECEMBER 2021

Developing Value And Protecting Your Plot In The UK

Withers LLP
Withers LLP
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Charities can become ‘inadvertent' landowners as a result of gifts and legacies, as well as through active investment. These gifts can be valuable if the land turns out to have development potential.

United KingdomReal Estate and Construction

Charities can become ‘inadvertent' landowners as a result of gifts and legacies, as well as through active investment. These gifts can be valuable if the land turns out to have development potential. However, holding land will not always enable a charity to profit from potential development. The expertise to promote land for the purpose of obtaining planning permission will usually need to be harnessed.

There are a number of ways in which charities can benefit from development value whilst minimising the costs and risks involved in obtaining planning permission. These include:

  • entering into a ‘promotion agreement' with a promotor, who will apply for planning permission and pay the professional fees and costs associated with doing so. Once planning permission has been obtained, the proceeds of sale will be split between the charity and promotor in pre-agreed proportions;

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