Option agreements—the need for a long-stop date

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Published by a LexisNexis Property expert
Practice notes

Option agreements—the need for a long-stop date

Copyright © 2025 LexisNexis

Published by a LexisNexis Property expert

Practice notes
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Call options are frequently used by developers to secure a right to buy land if planning permission is obtained. Taking an option provides the developer with time to make and pursue a planning application before having to commit to paying for the land. The developer's initial outlay will be limited to payment of an option fee, which is essentially the sum agreed with the landowner as the price for agreeing not to sell the land elsewhere while the developer seeks planning permission.

The developer is likely to incur significant expense in making and pursuing a planning application. High on the developer's list of priorities will be the inclusion of clauses allowing the developer to extend the option period if the planning process is still underway. Unless the option agreement or contract specifically allows for extensions of time, the time limit must be strictly adhered to (for further guidance, see Practice Note: Options—extending time for exercise). Option agreements commonly provide that the option period can be extended where:

  1. •

    an application has been made, but no planning permission

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Long-stop date definition
What does Long-stop date mean?

In a SPA/APA, the date by which the conditions must be satisfied (or waived) for completion to take place, so as to impose ultimate certainty as to completion of the transaction.

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