Overage Agreement, Is this reasonable?
Discussion
Hi All,
We are buying a house with a couple of acres of land in Cumbria. The land is within the village boundary and the sellers have advised that there will be an “Overage Agreement” attached to the land.
The terms of the overage agreement are that;
1. The Overage Agreement has a duration of 20 years from date of purchase.
2. The overage is 50% of the uplift in value should planning permission be granted within the next 20 years.
I would appreciate if anyone could advise if the above is a standard duration and if the percentage is normal?
Many thanks in advance,
GF15
We are buying a house with a couple of acres of land in Cumbria. The land is within the village boundary and the sellers have advised that there will be an “Overage Agreement” attached to the land.
The terms of the overage agreement are that;
1. The Overage Agreement has a duration of 20 years from date of purchase.
2. The overage is 50% of the uplift in value should planning permission be granted within the next 20 years.
I would appreciate if anyone could advise if the above is a standard duration and if the percentage is normal?
Many thanks in advance,
GF15
Hi All,
Really appreciate the info.
Negotiations ongoing.
The reason for the Overage is very plain and simple, the vendor does not want anything building on it, but needs the cash to buy some land adjacent to his land at the other end of his farm.
The reason we want the land is to stop anyone building on the land, destroying our view. The land is priced as agricultural land. It is in a national park.
We are optimistic that we can get to a good agreement.
Cheers
Really appreciate the info.
Negotiations ongoing.
The reason for the Overage is very plain and simple, the vendor does not want anything building on it, but needs the cash to buy some land adjacent to his land at the other end of his farm.
The reason we want the land is to stop anyone building on the land, destroying our view. The land is priced as agricultural land. It is in a national park.
We are optimistic that we can get to a good agreement.
Cheers
blueg33 said:
Selling the land separately may require rights over the property that can be messy at this stage, plus the planning stagus may mean that the site isnt ready to come forward now.
I wouldn't let the overage put me off, i would rather control what is built on land adjoining my property.
Nail on head. We are buying the land to prevent anyone else building on it! I wouldn't let the overage put me off, i would rather control what is built on land adjoining my property.
House is very big, so when we get old and recover from the cost of stamp duty, we would like the option to build a retirement pad on the land, and sell the main house.
I will update once resolved.
HI All,
OK, all resolved to our satisfaction. Land has been purchased at agricultural rate. Overage duration and percentage have both been negotiated down by a reasonable chunk. It is in a National park and unlikely to ever be granted planning, it is all about peace of mind and protecting us from someone developing in our view.
Your advice has contributing to ensuring that we have ended up in an advantageous position.
Thank you as always.
GF15
OK, all resolved to our satisfaction. Land has been purchased at agricultural rate. Overage duration and percentage have both been negotiated down by a reasonable chunk. It is in a National park and unlikely to ever be granted planning, it is all about peace of mind and protecting us from someone developing in our view.
Your advice has contributing to ensuring that we have ended up in an advantageous position.
Thank you as always.
GF15
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