Being ‘ransomed’ in development terms relates to a piece of adjoining land in separate ownership that is required for access to development land. Typically, land is ransomed when the development land can only realise its full potential by the acquisition or right of use over, or in some cases under, a ransom strip.

The strip can seem insignificant and can be as narrow, say, as 150mm between the land boundary and a public highway. In some instances, ransom strips are not easily identifiable and require detailed due diligence.

To put it simply, if a developer owns five acres of agricultural land with development potential, its value will jump significantly when the use changes from agricultural to consented land. 

However, should the only point of access be via third party land, then the increase in value can only be realised once this ransom land has been acquired or by land assembly. Land assembly is the process of uniting separately owned parcels of land – often neighbouring gardens – that alone have little or no development potential.

The value of land needed for access may have a market value, for example as a single dwelling, but when it is considered as the key to unlocking development it can be worth significantly more. Therefore it may be possible for the landowner to ‘hold the developer to ransom’.

For the current owner, the most valuable ransom strips are those that would provide the single point of access to a development. From a developer’s point of view, if there are alternative points of access then they find themselves in a much stronger negotiating position.   

Ransom strips can arise by chance or may be created intentionally with an eye to the future. The principle case law often used as a starting point when negotiating the value of ransoms is Stokes V Cambridge Corporation 1961.

Further information

Contact Savills Planning