Uplift Clause in Sale

[AnythingConsidered]

We've found a property we really like and want to view (we're sold and desperate to find some where to buy). I booked a viewing for tomorrow, but have just noticed this note right at bottom:

Agent Note
The property will be sold subject to an uplift clause whereby the current Vendor's will receive 30% of any increase in value upon the grant of planning permission for any new residential, commercial or leisure development over 25 years, from when the property is sold.

Anyone seen anything seen anything like this before? Been able to get it removed?or negotiate?

We want to live in the house as a family for the next 15 years, and have no intention of developing (other than maybe an extension in 5-7 years time) but I'm now thinking this clause will make it difficult to sell on.

Also, it feels like 30% is such a high sum and 25 years is such a long time!!!

If it just me?

Link for those interested in full details

I once looked at a house with a similar clause, 25 years ( we had no intention of developing the land ) . It put me off buying it because 25 years is a long time and who knows what circumstances might arise which might make you move & if the clause put me off - it might put off others. . Maybe I am just cautious but I would get specialist solicitor advice as others have said. Just one experience & I wish you well

@myplace that's really useful to know. Thank you.

@BasiliskStare I agree. 25 years just feels too long and I think it would make resale difficult, if something happens that means we have to sell quicker than we intend

Will let you know how the viewing goes

Oh my @AnythingConsidered that is one hell of a place. Hope you get it.

We were put off a bungalow, during our current search, as it had an overage clause as they had a big corner plot on a housing estate. I think on their part it was more greed, as it wasn’t like it could have been developed into several homes by a developer but the property itself could have been massively extended. It stayed on the market for a while, then was relisted without the clause. Went quickly after that.

As one poster says, in essence it's an anti embarrassment clause, they don't want you to develop it.

Secondly, it's simply their ask. Your offer is your offer. You could propose to reduce the years, reduce the %, scrap it altogether or come up with something new that meets both parties.

If yours is the only decent offer with terms you are both happy with, the seller will likely go for it. Obviously if there are many other offers closer to the buyers ask, then fair enough you'll not get it.

Always surprises me in the U.K. how reluctant people are to engage in the negotiation process. They see 'the opener' and make decisions immediately based on that. Instead of "yes I see your opener, thanks, I'm keen and ready to go but here's where my offer is".

If you like it then get in the mix! Ask questions, find out more, have a debate, thrash out a deal! Good luck, it's all good fun eh!

I hope that is just a considerable paraphrase of the legal clause. Given it says you have to pay up simply on the grant of the planning permission, and, that someone who is not the owner of the property can apply for planning permission on the property it would make an interesting issue if the current owners were to sell and then apply for planning permission on it in a few years to make some more money...

Anyone interested/appalled/disgusted by uplift/overage/claw-back clauses in property sales:
Your petition has been published and can be found here - https://petition.parliament.uk/petitions/660664

Very common with land as others have said. If you did want to develop you can say I'm going for PP here is £10k let me go ahead or if they decline you say ok I'll wait until the covenant expires!

ZOMBIE!
@AnythingConsidered did you buy it?