Promotion Agreement Economics

Your share, the costs deducted and the landowner's expectations

Land promotion is a numbers business dressed up as a planning business. You fund and manage the campaign for planning permission at your own cost and risk, the land is sold at its enhanced value, and the proceeds are shared with the landowner. This book teaches the figures that decide whether a scheme is worth pursuing: what the land is worth today and with consent, how many homes the site will really take once constraints and policy are honoured, what costs come off the top, what your share is after costs and tax, and what the landowner actually receives. You will learn where to find the data for free, how to avoid optimism dressed up as arithmetic, and the two layers of cost beginners confuse. The appraisal is stress-tested for refusal, delay and a downturn, and a worked example sets out a base case, a downside case and an honest expected value. Next in this series: “Promotion Agreements in Practice”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress testing for the refusal, the delay and the downturn
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.