What is an uplift clause?

[BuckwheatPillow]

UPLIFT CLAUSE
An uplift clause will apply to the sale requiring the purchaser to pay 50% of the increase in value following the grant of Planning Permission for a change of use from agricultural to residential use. The uplift clause will apply for 80 years but will not apply to the traditional barn

in relation to a house for sale. Thanks. Find ^^ abit confusing!

It means, if you brought some land that was being used for grazing cows from A, then 30 years later decided to build a house on the land, then you would have to pay A half of what the land would be worth with the house on it. This applies for 80 years after you have purchased the land but does not apply if you wanted the barn on the land to be changed into a dwelling (house with people).

You should check this with your solicitor though incase I am wrong.

Oh, half of the increase I mean. If you brought it for £1, then built and had land worth £10, you would have to pay half of £9, which is £4.50 IYSWIM.

even if you don't sell in the 80 years? It isn't a house I am buying, it's my dream house, it came on the market and was curious

one tweak to the above, it's the difference due to the change of use - so if you bought it for £1, then 5 years on got pp for res use, you would value at what the land was worth as agricultural land (say, £3) and what the land is now worth £10 with the pp, then the calculation is (10-3)x50%=3.50.

I assume that the "but will not apply..." part is specific to your transaction. Looks like godawful drafting to me!

Is it a house/land/barn conversion?

As far as I am aware, if you don't sell for 80 years then you don't have to pay half of the profit. It's a bit mean IMO though.

if you didn't sell it, the clause would never apply. It's only trying to clawback money for the original seller.

sorry, x posts. If you were buying and I was your solicitor I would certainly be trying to negotiate that period down, if not getting rid altogether. It's not a seller's market right now, after all!

property.timesonline.co.uk/tol/life_and_style/property/article494068.ece

found this article about it.

It's a big old farm, potential I guess to make millions if you even built a few houses on the land (Windsor)(I wouldn't though but I guess it's a prime developers target). Thanks

i've seen this type clause on a lot of property in this area, which is highly agricultural in nature. Have also seen it applied to some residential properties with very large gardens/grounds.