Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
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What do you know about overage clauses, found a house which sounds / looks quite interesting but has the following clause to be written into the sale:
An overage clause will be inserted in the contract for sale which would provide for 25% of any uplift in value to be payable to the Vendor for a period of 10 years, following implementation of any planning consent or sale subsequent to planning consent for a separate residential dwelling. This would not affect any extension to the existing dwelling or other domestic development ancillary to the existing dwelling. The basis of value of the uplift would be the value before and after, as at the time of planning consent or subsequent sale.
Is this only if the buyer was to get planning permission for a second dwelling on the additional land?
Say I purchased the house, and added an extension after time would the current seller be entitled to 25% of the value if I sold within 10yrs?
Seems a very cheap property but mainly due to being a small building with possibility of second dwelling but I would rather try to extend the current buildings.
Sorry for the essay.
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a_j_mair
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Registered: 23rd Jan 04
Location: Scotland
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never heard of it but sounds as if its only if there is permission granted for a further dwelling and land sold off withtin 10 years
extend existing house, then get planning and sell land after 10 years
land prices will only go up, cant make more of it tbh
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Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
User status: Offline
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Went to look at the property today, the land has alot of out buildings which I would eventually like to knock down and build a decent sized garage away from the house.
Not too fussed about ever getting planning permission for another dwelling as would make the plot a bit to cramped.
Option would be to get planning permission, build house for myself and knock current dwelling down but thats not finacially viable at this time of for forseable future. 
I've asked the estate agents to explain the clause in a bit more detail as its very brief.
a_j - Thats how I belive to understand it also.
Other option could be for my parents to buy it and put it back on the market for us to buy at same price without the clause. so current seller gains nothing and looses out on his 10yr clause.
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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The other option, is you buy the house and then sell the land and out buildings to your parents for £1. The you pay the previous owners 25p, and buy them back for another £1.
Although you may be prevented from doing this for various legal reasons (i.e sale price has to be of fair market value, etc.)
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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These normally apply if its a decent plot of land. It kind of prevents developers from moving in, demolishing the house and putting 4 new ones on the plot.
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