Feeling bullied, should we pull out?

[DobbieFreeElf]

I’ve come here to get some opinions from people removed from the situation.

We had an offer accepted on a house in September, the house fits our, very specific, needs and although we would like to improve it over the years (new kitchen, bathrooms, maybe extension) we would be planning this to be a home for 20 years.

The house is an adjoining paddock, a couple of acres, which is ideal as I have always had horses (prior to kids) and when the little people are bigger I would like to get another.

We were all set to exchange on the Monday before Xmas when our solicitor calls to say that the sellers want to impose an Overage clause (also called uplift/ clawback) on the land. In essence this means that if planning permission is granted on the land we must pay a percentage of the increase in value to the sellers. We felt completely blindsided as we had never even heard of this before that date.

Aside from potentially building a couple of stables in the future we have absolutely no plans to develop the land. (Why would we, we love the house because it is rural).

I can’t decide if we should cut our losses and walk away now.

Now the seller is threatening to put the house back on the market next Monday. We feel backed into a corner and bullied.

Initially we were dead set against the overage (especially as it was dropped on us at the 11th hour) but having had time to look around at what else is on the market (nothing that meets our needs), thinking about the 15k extra we will have to pay on another property (as it’s doubtful there would be a house we would complete on before the SD holiday ends), the £2k+ we’ve already spent on conveyancing, searches, surveys, inspections etc. and many other factors we had decided that we would be open to the overage (as long as we negotiate terms that we are ok with)

Are we stupid, should we walk away, is this fate giving a massive warning sign...

Tell them to stuff it, this close to exchange they sound like wankers.

Just pure greedy 😫

I think I'd go ahead seeing as you don't intend to develop the land anyway - they can have their overage clause seeing as they won't get anything from it anyway. I'd assume, though not certain, it can be time-limited to be within a few years, I'd check with your solicitor.

On the basis of what you've said, I wouldn't walk away it sounds like you want this place and will have a hard time finding something else you like.

They have set the overage to 40 years.

I have a newborn and she’ll be older than me when it expires 😩

Do you know what position the seller is in? Will they lose out if the chain breaks? They're bang out of order, regardless. I wouldn't want to give them another penny.

Or suggest you reduce the offer by a significant amount instead perhaps?

They’ll loose money if they pull out now too won’t they? Where are they due to move to?

I’d be tempted to tell them to stuff it and put your own deadline that they exchange by X date or you’re walking away.

They should’ve stated this from the start it’s ridiculous to add this in now

That’s the problem, they “don’t need to sell”. They’re retired and not immediately purchasing another property.

This is why we feel completely shafted.

I would probably walk away. You may never need to pay for it but may make the property difficult to sell.

Would they agree to leave building the estables and extension? Can you negotiate that only a portion of the land is subject to the clause?

Ah.., if they do not need to sell, forget about it, they will have you on hold for years...

@DobbieFreeElf

They have set the overage to 40 years.

I have a newborn and she’ll be older than me when it expires 😩

You could go back and negotiate on that, speak to your solicitor- maybe 10 years?

40 years is ridiculous to hold over a property, what would happen if you sold again in the meantime?

Are they likely to be dead before 30 years are up? 🤷🏻‍♀️

@ChrimboCalling

Or suggest you reduce the offer by a significant amount instead perhaps?

Conversely they are saying that to proceed without it we have to pay an additional 200% of the cost of the paddock

I’d be cautious. Because it might cause problems when you come to sell. I’d probably pull out. Sorry op.

Could you renegotiate down to 10 years? How much % are they asking for? Is it just of planning permission is granted or do you actually have to build on the land?

@KarmaNoMore

I would probably walk away. You may never need to pay for it but may make the property difficult to sell.

Would they agree to leave building the estables and extension? Can you negotiate that only a portion of the land is subject to the clause?

The paddock is on a separate title deeds so it is only in regards to the land and not the house or gardens

Cross posted. Walk away op. This isn’t worth it.

@sofato5miles

Are they likely to be dead before 30 years are up? 🤷🏻‍♀️

Most definitely 🤦🏻‍♀️ Unfortunately they can pass it on as part of their estate

Ugh, can completely understand your annoyance, esp as it came so late, but it sounds like a moot point, you weren’t thinking of selling anyway so what does it matter, plus it’s just a percentage of any gain, is it a sizeable percentage? I think you should probably go ahead, the house sounds lovely, but not if you think bitterness/discomfort over this will cloud what should be a long and happy time in your new home.

I would pull out. It will significantly reduce the value of the house and land for you.

We are in the process of buying somewhere with land. We have ruled out any with uplift clauses.

If you do go ahead, I would want to knock a significant amount off the asking price. Do your research and speak to other estate agents / conveyancers to find out the financial implication of such a clause.

Sorry OP but I’d be pulling out. This is shit 😫

@AN85 we have between ourselves said that even 20 years would be ok (as we plan to live there that long and if not we could still afford to sell the house and hold onto the land for that length of time)

It’s 25% on planning permission granted

Id see if you could exclude an extension and stables from that. Have it so it just applies to the land. And see if it could be reduced to the period of time that you expect to live in the house (so it won’t affect a future sale). I expect they want it so if you sell to developers for hundreds of thousands they get a cut. What percentage do they want? I’d be annoyed in your position, but if this could be a forever family home I’d consider it if you really don’t plan on selling it in the near future.

Their just taking the piss. I don't think they have any intention of moving and this is just a lockdown hobby for them, this clause theyve just sprung on you sounds like they dont want to give up the house at all. Just give them a deadline for completion and start looking elsewhere.

@Mediumred that’s a worry for me, I was so excited but not I’m just anxious about the whole thing. I’m not sure if I believe in fate ir not but I can’t help thinking the universe is waving a big red flag at us