people that sell land with a development uplift clause are grabby

[sallyismyname]

I've been quite interested in buying a piece of land. Viewed it s few times and went in to speak to the agent today. They've informed me that the vendors now will only sell with a development uplift clause so that if it increases in price at all over the next 21 years due to gaining planning permission I have to pay them 50% of the value!

This is just graby right? You want to sell something but only with ties so you can profit of someone else's hard work

Is the vendor a private seller? Or a LA; public body? The other reason vendors add this clause is to prevent public bodies selling off land cheaply to their friends, who then change the planning and sell the land on for massive profit, cheating the public purse out of millions. It really isn't just about being greedy. It's about protecting sites from development and protecting public funds.

If you 're planning on planting a forest, hiding a caravan onsite and possibly selling in 5 years then tbh you are exactly the sort of seller who should have a clawback clause. Your 'secret' caravan could be seen as an attempt to set a precedent for some sort of housing onsite, leading the way for a change of use application and suddenly the forest is a housing development. Of course, you're clear that's not your aim but from a vendor (or a local community) pov your actions could be viewed that way.

That TV show where people illegally built homes some of them had been there for 10 years, most had been there for at least 4. I don't think they act quickly. All they were forced to do is remove the structures. I'll be able to tow away my caravan and leave very little impact on the land.

I'm not planning on selling in 5 years. That was just a random number . shit might happen and I might need to sell one day is all I'm saying.

Private seller

But if you did sell it, wouldn't it be as forested land? Not with PP? After all if you want to be Eco friendly you wouldn't want to get PP would you?

She might not want to get PP.
But it's possible that the local council could change their development policy for the area under government pressure for new homes. That would immediately increase the land's value at resale.

Either I'm really thick or I really don't think you understand how the uplift works. You would only ever pay it if you had planning permission. As you say you are going to turn it into a forest, I honestly can't understand what your issue with it is?

Arable land is £10000 an acre in these parts. It is the basic cost for bare land. I would always expect an uplift to be included at that price. The fact that you didn't says to me that you are either very naive and need to do a lot of research or incredibly greedy and thought you were getting something on the cheap.

There are many woodlands already for sale at very reasonable prices. They will all come with no build clauses but of course given what you have said that won't matter to you. Why put yourself through the stress of establishing more at great cost?

It sounds to me like you are trying to get yourself a nice weekend retreat for minimal cost in which case you will need to pay up like the rest of us I'm afraid.

This is a fairly standard provision. The selling price is for agricultural value. If the sellers were looking for development land value then they would be looking for much higher than 50% - probably nearer 80% of the value with planning consent.

If you just want to put a caravan on, then it won't bit if you don't get planning permission. Alternatively get a specific carve out for the caravan or whatever structure it is you want. The sellers will probably only be interested if you get consent for a massive house or houses.

I don't think you should walk away just based on the this clause. your solicitor should be able to hammer out something you can live with.

A lot of public bodies like Nhs have to put this in as they can't spend public money for the health service on obtaining planning unrelated to their own requirements to make an 'investment profit'. But equally they don't want the public purse to miss out by someone coming in, and 2 years later walking away with a stonking profit.

I find it hilarious how all the clauses and rules are fine unless they impact you op when they're not. You want uplift if you need to sell early but not to your vendor. You will get planning for what you want to do, unless it's not granted in which case you'll do it anyway.

Can I point out its a 50% clause. You would still profit from half of any increase... Although obviously it won't be relevant as you're not developing the site.

I guess you also have investigated whether you can get change of use for the land to plant trees? It's not unreasonable, we already can't support our population so you using farmland for forest does increase the non green import of food. Trees also dramatically change drainage in an area which could impact your neighbours considerably.

Just some thoughts.

Too tired its not that I'm going to get pp, other for a caravan and shed, but having an expensive asset that I may need to sell with some rights that someone else owns.

I don't think turning some disused and overgrown farm land to forest will affect the UK food supply chain! In this country 1/3 of all food bought gets thrown away and we eat far too much meat and that is a very wasteful use of the land.

Buy it, rent it out to horse owner ect then in 22years get planning and build :-) or just work your vendors clause into your costs and build anyway

OP your comments in that last post all sound very reasonable to you but they have no influence whatever on the actual situation.
You will continue to be governed entirely by the contract and by planning law. And as I pointed out above, the sale value of the land could increase dramatically in the future by influences entirely outside of your control.

if it increases in price at all over the next 21 years due to gaining planning permission I have to pay them 50% of the value!

But you don't plan on getting planning permission so the clause won't come into effect should you need to sell.

I get that sally. That's why I'm walking away from the deal. In my mind if you sell something you give up rights to it. I understand if it was La or NHS selling it but others seem to be abusing this law.

I'd love to be able to sell my shares while still being able to get 50% of the profits if they did increase in value over the next 21 years.

Soup even if I don't get pp and sell the land will still be affected as I have to sell it with a clause where someone else has rights of t. That's the point.

The land sounds very cheap, where we are in Scotland you wouldn't even get agricultural land for this kind of money, if it's land which has planning permission then you would be looking at £300k per acre or more quite easily.

As other have said it's very normal for a vendor to put that kind of clause into the contract, 20yr term is the norm up here for that kind of clause.

I think you are right to walk away. Just too many unknowns.

If it's public sector they owe a duty to the taxpayers to do it; if it's a public company the directors owe a duty to their shareholders to do it; if it's a private company or individuals they have very right to do it.

It's a bit crap, a bit disorganised, to do it this late, but apart from that you have nothing to complain about it. Take it or leave it.

I dont think its unreasonable. They are asking a price for it, if you dont want to pay or its over market value - dont buy it. Why should you get it cheap? Just another way of looking at it.

That said any price is negotiable, go for say a 10 year period, 35% of uplift.

Its a market. So whatever is agreed, less of course the planning and professional costs to gain consent.

Though 33% is the norm.