The CLT’s housing association partner pays for the land by entering into a long-term lease with the landowner; the landowner then transfers the freehold to the CLT for £1. This means that, without having to fund-raise, the CLT becomes the freeholder; in other words the ‘landlord’ to the housing association’s ‘tenant’. These transactions are formalised in an Option Agreement which is signed by the CLT, HA and landowner before a planning application is submitted.