Overage Clause on Land Registry

kez84

We are in the process of buying a house with a restriction on the land registry which is worded as follows;

"(the owner of the property) will pay a sum equal to 50% of the increased in value of any part of the property from its value with planning permission for one residential unit and its value with planning permission for future further separate residential development"

We took this to mean (upon the advice of our solicitor) that it would apply to residential development of the land i.e. if we were to build a separate house and sell it on, which is why we've proceeded with the purchase. However, the solicitor acting on behalf of the person who has the overage rights, has since tried to say that the restriction applies to development of the existing property as well as the land. So if we were to extend the existing property then the overage right would come into force.
My solicitor is arguing the toss over this but everyone is at loggerheads and it's holding up the entire chain.

I'm not asking for legal advice, I just wondered if anyone else had been in a similar situation, or what people's thoughts were? Just feeling frustrated with the whole thing!

D_M_E

I think your solicitor is correct - the key word here is separate which means another, separate, construction, not one which is attached to, and is part of, the existing building.

If all that is proposed is to extend the existing building, then that is not a separate dwelling and the overage clause should not therefore apply.

booksurr

I agree the word separate seems to be the key factor

how 2 solicitors with differing interpretations reach agreement without going to court is another matter....