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Land and planning gain calculator

Buy land or take an option, win planning permission and sell to a developer with consent. Work out what the site is worth with planning, what you make if it’s granted or refused, and whether the odds justify the spend.

The site
Unit

What the land is worth if planning is refused, e.g. its agricultural value.

How you secure it
Route to the land

Paid to the landowner up front

Exercise price

Landowners commonly get 75 to 90%

On exercise: stamp duty, legal

Planning
Planning route

Establishes the principle and the number of homes; details follow in reserved matters. Statutory decision period 8 weeks for minor schemes, 13 for major (check current rules).

Set nationally. Check current rules.

From securing the land to selling with consent

Your judgement after pre-app

What a developer would build
GDV

Sale price of each finished home

Including roads, services and fees

Of GDV. 15 to 20% is typical.

From the council's charging schedule

Affordable housing, open space, schools

Selling with consent

Land agent and legal

Land value
£744,000
Profit
£84,420
Weighted
£31,852
All results

Results

Residual land value with planning

£744,000

What a developer could pay for the site with consent, £372,000 an acre.

Uplift

+£148,800

Over the exercise price, 0.3× what you pay.

Profit if granted

£84,420

Before tax, selling at the residual value.

If refused

-£47,000

The option fee and planning costs are lost.

Probability-weighted

£31,852

At a 60% chance of consent.

Annualised return

90%

If granted, on £47,000 of your cash over 24 months.

Break-even probability

36%

The chance of consent at which the weighted profit is zero.

Sale price for your target

£830,556

To make £100,000 before tax, more than the residual value supports.

Three routes, same site

Profit by route to the land, on the same assumptions
RouteCash inIf grantedIf refusedWeighted
Buy outright£99,500£629,620-£75,980£347,380
Option· selected£47,000£84,420-£47,000£31,852
Promotion agreement£37,000£138,424-£37,000£68,254

Buying outright uses the purchase price and finance above; the option uses the option terms.

Planning fees, CIL rates and the rules on permission in principle and Class Q change. Check current rules with the council and the Planning Portal before you budget.

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