Uplift clause / overage clause

Becjk

Hi
My mother in law has some land that she wants to sell, possibly at auction. It doesn't have planning permission but advice seems to be that at some point in the future (5-10 years) the land could get zoned for residential planning. She's heard of uplift clauses and wondered if there is a standard percentage for uplift, or if not, is there a formula to work a percentage out? Is an uplift clause only put on for a certain duration?
Thanks

Flat_Eric

Becjk wrote: »

Hi
My mother in law has some land that she wants to sell, possibly at auction. It doesn't have planning permission but advice seems to be that at some point in the future (5-10 years) the land could get zoned for residential planning. She's heard of uplift clauses and wondered if there is a standard percentage for uplift, or if not, is there a formula to work a percentage out? Is an uplift clause only put on for a certain duration?
Thanks

I'm come across overage (briefly) and its complex. I'd recommend getting suitable advice from a solicitor who has experience of overage and who can advise your MIL.

That isn't much help I'm afraid but providing for overage is a minefield and it really needs to be got right.

How much is she thinking of selling the land (as it is now) and does she have any idea on how much it would be worth with the residential zoning. Why does she want to sell at auction?

Becjk

Hi
Thanks for your reply.
The land is worth around £100k as it stands, but if it got into the zoning plan and with planning, she's been told it could be worth around £2 million as its in the south east with enough to build a number of houses. She's quite old and doesn't want the land anymore but obviously would like to benefit from it as its been in her family for generations. I think the valuation of £100k reflects some sort of uplift clause would be put on.

Flat_Eric

With those kind of figures, I definitely recommend your MIL gets appropriate legal advice from someone who knows overage inside out.