Garden plot option agreements in Merton

If your garden in Merton has potential but the route to planning isn’t simple, an option may be the most honest arrangement. It recognises that we need time, perhaps to secure access, bring in a neighbour’s land or work through the council’s Local Plan, and that you shouldn’t be asked to sell before that work is done.

You grant the right; we take on the cost and effort of planning. When an acceptable permission is in place, we can buy at the price the agreement sets, usually through a formula with a minimum underneath. Until then, nothing changes hands, and your reasonable legal fees are covered within an agreed cap.

Legal agreement, pen and a title plan with a garden plot outlined in red on a desk
Planning authority
London Borough of Merton
Postcodes
CR4, SM4, SW19, SW20
Noon sun, 21 March
About 39°
Shadow from a 5 m eaves line
About 6.3 m
Planning plan
Local Plan
County
Greater London

What the council will look at in Merton

Any option agreement on a Merton garden is shaped by the council’s Local Plan. If the London Borough of Merton’s current policies clearly support a new home on your plot, an option probably isn’t needed and a simpler route will serve you better. Where the policy position is balanced, or a review of the plan is under way, an option gives time for the planning case to be made properly. We read the relevant policies and recent decisions on similar plots before suggesting an option, and we explain what we found.

Section showing noon sun and shadows in Merton: about 39 degrees on 21 March and 15 degrees on 21 December21 m21 Mar, noon: sun 39°, shadow 6.3 m21 Dec, noon: sun 15°, shadow 18.5 mExistingNew home
Noon sun in Merton on 21 March sits about 39° above the horizon, so a typical two-storey eaves line (about 5 m) throws a shadow of roughly 6.3 m. In December the sun is only about 15° up and shadows stretch much further. Drawn for a garden facing north, where it matters most.

What happens next in Merton

After your enquiry, we carry out the free appraisal and compare an option with an outright sale and a conditional contract for your plot. If you choose the option, your solicitor reviews the agreement before signing, and once it is in place we start the planning work, share the drawings before submission and keep you updated.

  1. Free plot appraisal

    We look at your title, the access, the planning history and the policies that apply, then tell you honestly whether an option, an outright sale or a conditional contract fits your plot best. It costs you nothing.

  2. Heads of terms

    We set out the option period, the price formula and minimum price, any option fee, our planning obligations and the cap on your reasonable legal fees, which we cover. Nothing is binding at this stage.

  3. Sign the option

    Your solicitor and ours agree the option agreement and the plan of the plot. Once it is signed, the option is noted on your title, and you carry on living in your house and using the garden as normal.

  4. Exercise or lapse

    If an acceptable permission is granted, we serve notice, the price is fixed by the formula and the sale completes in the agreed time. If not, the option lapses, the entry comes off your title and the land stays yours.

Worth checking early

  • Deductions agreed at the start, such as planning costs, reduce what you receive, so check them closely.
  • Options have their own Capital Gains Tax treatment, so take advice from a tax adviser before signing.
  • Your plot is tied up for the option period and can’t be sold to anyone else meanwhile.

Your questions, answered for Merton

Will you cover my legal fees on an option in Merton?

Yes. We cover reasonable legal fees for your own solicitor on an option agreement, up to a cap agreed in heads of terms. Choose a solicitor experienced with development land, and agree the cap with us before they begin, so their fees stay within it.

Who decides planning on an option plot in Merton?

The decision belongs to the London Borough of Merton, which will weigh the scheme against the council’s Local Plan and the National Planning Policy Framework (NPPF). Our job during the option period is to put in the strongest application the plot allows and answer the council’s questions. The agreement sets out what happens if permission is refused.

Could my neighbours in Merton be part of the same option scheme?

Yes. Where neighbouring gardens together would make a better scheme, each owner can grant an option on their own land, and an agreement between the owners can share the outcome fairly. It needs careful drafting and everyone’s agreement, and it often produces a scheme the London Borough of Merton is more likely to approve.

Do I pay Stamp Duty Land Tax (SDLT) if you exercise an option over my Merton plot?

No. Stamp Duty Land Tax (SDLT) is paid by the buyer of land, so any amount due on completion falls to us. As the seller, you may have Capital Gains Tax to consider, and options have their own rules on timing, so take advice from a tax adviser before signing.

Other options in Merton

Option agreement near Merton

Find out what your garden could become

Free garden plot appraisal. No cost, no obligation, and a straight answer if it won’t work.