Building with uplift clauses question.

Mgman1965

eddddy wrote: »

Maybe the seller with the uplift clause, has kids too - who can't afford to get on the housing ladder - hence the uplift clause is intended to help them in the future..


So you want to make a profit to benefit your kids - just like a seller might want to make a profit to benefit their kids.


You're not a bad person because you want to make a profit (I aim to make profits too), and neither are the sellers bad people for wanting to make a profit. That's just how the world works.

Your last paragraph hits the nail on the head even though a couple of posters on here seem to be of the opinion that anyone making a profit from buying something off someone else makes you some sort of evil moneygrabber, and others on here seem intent only on picking at your punctuation and infering things into it and you have some sort of secret agenda.

Unfortunately those posters have taken the thread totally off- topic and derailed it from the original question

We live in a capitalise society, if you don't like it go live in a communist society.

Same as if you have a bit of land or house with large garden, sell it for sell it as that at that value, if you think it's got potential as development land, develop it yourself and make the profit or just get outline planning permission which knowingly increases it value as development land and sell it as that.

Doing nothing but sticking an uplift clause on it is really just lazy and hedging your bets that someone else will do the work to make you a profit.

Simples.

Grenage

Mgman1965 wrote: »

Doing nothing but sticking an uplift clause on it is really just lazy and hedging your bets that someone else will do the work to make you a profit.

Welcome to capitalism.

AdrianC

Mgman1965 wrote: »

even though a couple of posters on here seem to be of the opinion that anyone making a profit from buying something off someone else makes you some sort of evil moneygrabber

Not at all.

You want to buy and develop the plot - great, go ahead.
You, otoh, seem adamant that it's not for profit, and you shouldn't have to share any uplift in value with the vendor. Well, if it's not going to make any profit, then there's no uplift to share, right?

Profit is only realised on sale. It still exists, albeit only on paper, before.

You buy a £100 thing.
You do £100 of work to it.
It's now valued at £300, but you don't sell it.
Have you still made a £100 profit?

and others on here seem intent only on picking at your punctuation and infering things into it and you have some sort of secret agenda.

Can you see any difference in implication between these two questions?

1. I'm going to "sell" it to him for a "reasonable" price.
2. I'm going to sell it to him for a reasonable price.

Unfortunately those posters have taken the thread totally off- topic and derailed it from the original question

Remind me what the original question was?

I can see three in your original post. Let's take them one by one.

Mgman1965 wrote: »

If the development (new house) on the plot is not built to be sold, would that still trigger the uplift payment to the (I consider greedy) previous owner ?

What does the exact wording of the clause say?

If just selling the plot triggers the uplift, could we defer selling but still building, till the uplift expires ?

What does the exact wording of the clause say?

Anyone any experience of uplift clauses ?

Yes. The important thing is the exact wording. If you post that, we can give better advice.

We live in a capitalise society, if you don't like it go live in a communist society.

Indeed we do. And yet you're the one saying you consider the vendor greedy for wanting to share the profit in the development via the uplift clause.

Same as if you have a bit of land or house with large garden, sell it for sell it as that at that value, if you think it's got potential as development land, develop it yourself and make the profit or just get outline planning permission which knowingly increases it value as development land and sell it as that.

Have you ever heard of people in the financial industry trading futures? Or options?

Doing nothing but sticking an uplift clause on it is really just lazy and hedging your bets that someone else will do the work to make you a profit.

But if they don't do the work, then they bought the place for a fair value. Whereas if you price the place based on the future potential, it won't sell as-is, because it'll be overpriced.

Simples.

Indeed. So why are you objecting to the vendor's proposed terms and calling him "greedy"?

If you want to buy it with the future development value priced in, and no uplift, then simply offer more money, with the clause removed. You're the one wanting cake-and-eat-it here.

Tiglet2

OP please quote the exact clause.

Some people we know have an uplift clause, they were concerned about future development of the plot should it come into the hands of a developer. However, their cut would be 20%, the developer the other 80%, so while the owner would still benefit from a 20% uplift in the future, the vast majority of profit would be made by the new owner.

Davesnave

So far as I remember, properties I've considered with uplift clauses have had them for varying reasons and with different conditions, and periods of validity attached. It's therefore not possible to generalise about them, especially as some have already been bought and then returned to the market at a later date.

Changes in local and national planning rules can make even quite modest properties suitable for the sort of project you envisage. There are several examples in my village where people have or have not realised the full potential of their garden plots.

While people are canny these days about the value of potential plots, it's still do-able to find property with building possibilities unrecognised, especially if there's commercial or agricultural usage attached which has been rendered non-viable, or even undesirable, by changed conditions.

Naturally, unlike the uplift-attached properties, these won't be flagged-up prominently and it's a question of finding them.