Overage when buying land.

MeteredOut

Procrastinator2 said:

user1977 said:

Procrastinator2 said:

MeteredOut said:

user1977 said:

Procrastinator2 said:

I have read the agreement and it states each time a planning application is submitted  they will engage a surveyor at my cost and I have to pay 10% of any uplift in value within 10 days.

I think either you've missed out some stuff or it's been ineptly drafted. Merely applying for planning does not affect the value...

But if OP applies for any sort of planning, and the vendor engages a surveyor at the OPs cost, they'd have to pay 10% of any uplift in value. If worded as stated, and the market value of the land has increased, simply applying for planning would mean the OP is due to pay the previous owner10% of that increase in market value.

OP, there's no way I'd sign up for that. Can you post the actual wording?

Not only does it state planning applications but also states any permitted development and technical applications.

It would help if you posted the actual wording rather than just your precis, so we can tell how badly worded it currently is.

I would like to to post the actual wording but I am not sure if I would be in breach of confidentiality. I already had one rollicking this week from my solicitor for contacting the sellers solicitor and trying to have the overage removed.The whole thing is complicated, my conveyancer does not deal with  overages he said I will have to engage his boss at an extra £2.5 K. we are buying a house and the land is in front and there is no legal access to the house without owning the land. The agent selling the house is not interested in dealing with it. I have been told that I should not contact the sellers direct by my solicitor..This situation is getting silly and I think the best option is to walk away.

Unless you have signed an NDA, I can't see how you could be in breach of confidentiality, so long as you redact any personal information.

Without the specific wording, there is very little people can advise. But, even if you do and get the opinions from those here, you're still very likely to be advised to get proper advice if you do plan to proceed.

Since your solicitor gave you a rollicking (remember, they work for you, not the other way about), and told you not to contact the sellers, what are they doing about trying to get the overage removed? 

Dustyevsky

MeteredOut said:

Procrastinator2 said:

user1977 said:

Procrastinator2 said:

MeteredOut said:

user1977 said:

Procrastinator2 said:

I have read the agreement and it states each time a planning application is submitted  they will engage a surveyor at my cost and I have to pay 10% of any uplift in value within 10 days.

I think either you've missed out some stuff or it's been ineptly drafted. Merely applying for planning does not affect the value...

But if OP applies for any sort of planning, and the vendor engages a surveyor at the OPs cost, they'd have to pay 10% of any uplift in value. If worded as stated, and the market value of the land has increased, simply applying for planning would mean the OP is due to pay the previous owner10% of that increase in market value.

OP, there's no way I'd sign up for that. Can you post the actual wording?

Not only does it state planning applications but also states any permitted development and technical applications.

It would help if you posted the actual wording rather than just your precis, so we can tell how badly worded it currently is.

I would like to to post the actual wording but I am not sure if I would be in breach of confidentiality. I already had one rollicking this week from my solicitor for contacting the sellers solicitor and trying to have the overage removed.The whole thing is complicated, my conveyancer does not deal with  overages he said I will have to engage his boss at an extra £2.5 K. we are buying a house and the land is in front and there is no legal access to the house without owning the land. The agent selling the house is not interested in dealing with it. I have been told that I should not contact the sellers direct by my solicitor..This situation is getting silly and I think the best option is to walk away.

Since your solicitor gave you a rollicking (remember, they work for you, not the other way about), and told you not to contact the sellers, what are they doing about trying to get the overage removed? 

The OP said they contacted the vendor's solicitors. That's a definite 'No!'  Contacting the vendors directly, isn't.

The point you are making is good, though.

Procrastinator2

anselld said:

If you are planning to walk anyway then the first step would be to tell the vendors you will walk if they do not remove the overage.  You don’t need the expensive boss solicitor to do that.

I agree totally

se2020

This sounds more like an anti-development clause.

This would be common if someone is selling the field behind their own house but doesn't want to see anything but sheep on it in the future. 
But, rather than putting a restrictive convent on it, they are being greedy and deciding they will put up with looking at a barn, for a few extra quid for each thing you do.

If the wording is as you say then I would be walking away.  The only way I would be interested is if I was short of funds and the land was being sold well below market value. 

As you say in the first post, if those terms are correct,  then anyone (including the current owner or a random member of the public) could put in a planning application.
If the uplift clause is 10% what's to stop the current owner waiting a day after the sale them submitting an application for a £2million 'grand designs' house.
Then notifying you that you owe them £200k in 10 days time.. sounds like you'll still owe them £200k when the planning gets rejected..

MeteredOut

se2020 said:

This sounds more like an anti-development clause.

This would be common if someone is selling the field behind their own house but doesn't want to see anything but sheep on it in the future. 
But, rather than putting a restrictive convent on it, they are being greedy and deciding they will put up with looking at a barn, for a few extra quid for each thing you do.

If the wording is as you say then I would be walking away.  The only way I would be interested is if I was short of funds and the land was being sold well below market value. 

As you say in the first post, if those terms are correct,  then anyone (including the current owner or a random member of the public) could put in a planning application.
If the uplift clause is 10% what's to stop the current owner waiting a day after the sale them submitting an application for a £2million 'grand designs' house.
Then notifying you that you owe them £200k in 10 days time.. sounds like you'll still owe them £200k when the planning gets rejected..

The uplift would be on the value of the land were it to get planning, not the value of the property the planning is for, but your point still stands that no-one in their right mind would buy a piece of land with such an open-ended overage clause.