There are many obstacles to development: planning permission, bat surveys, the existential horror of planning agreements, but nothing quite compares to the dark joy that is the ransom strip. If you’ve heard of one, you’re likely one of three people: a developer, a landowner, or me – a property solicitor, whispering “you should have checked the title plan” into the void at 3:00 a.m.
What Is a Ransom Strip?
A ransom strip is a small, sometimes laughably small, piece of land that can hold an entire development hostage. Usually no wider than half a metre, it often sits between your site and the public highway. Unless you own it or have rights over it, your project isn’t going anywhere.
It’s the property law equivalent of someone standing across your driveway saying, “Nice development you’ve got there. Shame if something stopped it getting built.”
You might own acres of land ready for housing, but if someone else owns that half-metre at the entrance, you’re stuck. Literally.
How Did We End Up Here?
Historically, ransom strips were created by landowners with the foresight of Bond villains. When selling off land, they’d keep a sliver along the boundary, knowing full well that one day a hopeful developer would would want to connect their land to the highway, utilities, or a footpath that goes precisely nowhere.
The real genius, of course, is that these strips are so small, they often slip under the radar. They barely show on plans, and their legal significance can be buried deep in an old conveyance from the 1920s that’s been photocopied upside down and filed under “good luck finding it.”
What’s the Ransom?
The law accepts that the owner of a ransom strip can take a share of the increase in value that their land unlocks.
In the well-known case Stokes v Cambridge (1961), the court suggested a starting point of one-third of the uplift in value.
A third. That’s not a third of your land, but a third of what it’s now worth because of that half-metre of tarmac you can’t cross.
So if your development value jumps by £900,000 once access is secured, expect the ransom strip owner to want £300,000 and a smug smile to go with it.
Can You Get Around It?
There are a few possible routes, though none are painless.
- Check your title early – A specialist solicitor can spot ransom risks before you buy the site.
- Negotiate – Some owners will agree a fixed sum rather than a percentage of uplift, especially if they fancy a quick win.
- Claim prescriptive rights – Developers sometimes argue, “But we’ve used this path for 20 years!” Unfortunately, that rarely gets far without very specific conditions being met.
- Try Section 203 of the Housing and Planning Act 2016 – In limited circumstances, local authorities can override certain rights to allow development, but it’s far from guaranteed. And no, the council rarely feels that charitable.
The Ironic Bit
The real joke is that the ransom strip only has value because you made it valuable. Before your plans, it’s worthless. Once you need it, it becomes the most expensive square foot you’ve ever met.
It’s like planting a vineyard and then discovering someone else owns the corks.
Avoiding the Trap
The easiest way to deal with a ransom strip is to avoid it completely. Before you buy land, have a property solicitor check your boundaries, title plans and access points. Finding out there’s a problem while your site is full of builders and diggers is… let’s say not ideal.
A quick legal check could save you months of delay, thousands of pounds, and one very smug landowner with a folder of Land Registry documents.
Final Thought
Ransom strips are small but mighty.
If you’re buying or developing land, get specialist legal advice early. It’s far cheaper than paying for half a metre of regret later. Our Real Estate Development team are here to help, get in touch touch on 0800 118 1500 or complete the form below.
Disclaimer
This blog was written by Jodie Wood, Solicitor in our Real Estate Development team. The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional. The contents of this blog refers to the process in England and Wales.