Property Saviour logo
Call Me Back, Please

What is an Overage Clause?

Property Saviour » Planning Permission » What is an Overage Clause?

An overage clause is a provision in property contracts that allows you, as the seller, to receive additional proceeds from the sale later. You and the buyer use these clauses to create a mutually beneficial financial outcome.

Table of Contents

How You Benefit from Overage Clauses?

As the seller, if you own underdeveloped land, you might lack the experience and financial resources to handle the planning and building processes yourself.

However, by entering into a legally binding overage agreement with a competent developer, you can benefit from the future uplift without any financial input.

If everything goes well, the net proceeds from the land sale would be higher than in a straight sale.

Overage "Triggers"

Several future scenarios can trigger the overage payment. You should consider these scenarios when making payment decisions. It’s important to understand the potential consequences of these scenarios to make informed decisions.

  • Alteration of the designated use of a specific building – often involving residential, commercial, industrial, or mixed-use development/conversion.
  • Destruction and subsequent reconstruction of a larger structure.
  • Obtaining authorization for vertical or horizontal expansions, additional residences, or other value-enhancing endeavours exclusively.
  • Granting of Permitted Development Rights (PDRs) exclusively.
  • Initiation of a development project solely.
  • In an ascending market, you, as the seller, participate in the appreciation of land value.
  • Disposition of the property or land at an increased value within a predetermined and contractually agreed timeframe.
  • Disposition of the property or land after the satisfaction of pre-planning conditions.
What Is An Overage Clause
As the seller, if you own underdeveloped land, you might lack the experience and financial resources to handle the planning and building processes yourself.

Sell to us!

If you need a reliable house buyer who provides options to help you find the selling solution that fits your situation, contact us and we will make a fair offer on your property.

auction hammer

Property Saviour Price Promise

  • The price we’ll offer is the price that you will receive with no hidden deductions.
  • Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
  • These valuations or surveys result in delays and price reductions later on.
  • We are cash buyers.  There are no surveys.
  • We always provide proof of funds with every formal offer issued.
calculator

We'll Pay £1,500 Towards Your Legal Fees

  • No long exclusivity agreement to sign because we are the buyers.
  • You are welcome to use your own solicitor. 
  • If you don’t have one, we can ask our solicitors for recommendations.
  • We share our solicitor’s details and issue a Memorandum of Sale. 
Sell

Sell With Certainty & Speed

  • Our approach is transparent and ethical, which is why sellers trust us.
  • 100% Discretion guaranteed. 
  • If you have another buyer, you can put us in a contracts race to see who completes first.
  • Complete in 10 days or at a timescale that works for you.  You are in control.

Sell with certainty & speed

Share This Article:

Related Articles

Skip to content