Development clause on land - help!

Honeyhoney

ging84 wrote: »

uplift clauses are a dodgy business
i would make it clear from the outset you intend to build on the land, and therefore would not be agreeing to any uplift clause

Surely you can't just not agree to them though?! Are development clauses ever negotiable?

All questions I need to ask the agent and the vendor, I know!

Doozergirl

Honeyhoney wrote: »

Surely you can't just not agree to them though?! Are development clauses ever negotiable?

All questions I need to ask the agent and the vendor, I know!

Everything is negotiable, however, if this is genuine development land and you are simply buying it without pp because the vendors are old then you have a pretty good deal.

Self build Development plots are as rare as hen's teeth in my area. If one person won't pay, someone else will.

It's your conveyancing solicitor that you need to converse with. The vendor and ea are not going to tell you how to protect your own interests. This is worth paying for professional advice on in advance.

Richard_Webster

If there is an overage clause then when you buy you have to pay SDLT on the price you pay plus the extra value that would be derived from the planning permission - as a contingent liability. When you actually do the development and sell you then complete an adjustment from with HMRC and pay the extra or claim a refund. If you never do the development, at the end of the overage period you can claim the SDLT back.

For this reason overage clauses are not a good idea unless the amount paid plus the development value is less than £125K.

TeamLowe

Honeyhoney wrote: »

council have all implied that PP may well be obtained.

The opinions of the agent and vendors are not helpful, they'll say anything to sell you the land and they're not experts in planning law.

Get a detailed response from the planning officers at the Council on that piece of land in particular. have you seen local development plan? what is the land designated as?
'paddock' suggests Green Belt, which has (as far as i understand from clerking planning meetings) the highest level of protection and will be fought tooth and nail by the Councillors. you'll have to really justify why that piece of land and no other piece will do, which is a tall order for the private building of two homes.

princeofpounds

Personally I've always thought that overage clauses are very much the vendors trying to have their cake and eat it.

But at the end of the day it's an economic decision.

You'd need to pay shortly after gaining planning permission, and most likely if you weren't selling then a surveyor would do a valuation of the uplift.