Possessory title AND overage clause?

Countrysider

ProDave said:

The overage clause does not devalue it as a single house, so why would a mortgage company be worried?

It does devalue the house. Very significantly IMO. The key part of the OP statement is that the asking price is similar to comparable properties without the overage clause. This should never really be the case. 

I'm not against overage clauses when they're used as intended. Only recently i saw a chapel for sale with no planning and an uplift clause, but it was only asking £50K. With residential planning it would be worth at least twice this amount and converted to a dwelling would probably command £250K. Agricultural land sold at a price to reflect its value as a field with an uplift clause if it was ever granted residential planning also seems necessary  to avoid land banking. 

The issue here is that someone is selling off a house with a large garden at the market price, whilst retaining an interest in the future value. Having both the current unhindered market price and potential price is going too far and this kind of cheekiness is only possible when the market is bonkers. I would have hoped mortgage companies would have downvalued because an overage would seem to have more impact on mortgagability than the lack of kitchen / bathroom, which is far easier to rectify. 

trakky14

Thanks everyone, will leave this one for now and see if we can find something less complicated!!