Using overage agreements in the sale or acquisition of land

An overage agreement entitles the seller of land to receive extra payment from the buyer in addition to the original purchase price should certain events occur, such as an increase in the value of the land due to obtaining planning permission.

Overage agreement solicitors for commercial land

Acting for landowners and buyers throughout England and Wales, our team of property solicitors advise on all the legal and practical issues that arise when negotiating or becoming bound by an overage agreement.

Whether you are a seller benefiting from overage, or a buyer subjected to its terms and conditions, our legal experts are highly experienced in ensuring that a legally-accurate, correctly-documented overage agreement is in place to protect your interests now and in the future.

Our advice includes guidance on:

• When the overage should become payable (i.e. what specific events should activate the agreement)
• Whether the payment will be a fixed sum or a percentage of the enhanced value of the land
• What deductions may be offset against the increase in the value of the land
• Whether the overage takes effect on one single occasion or against any further future development
• How the overage will be protected

It is important to be aware that overage agreements can cause taxation and other financial issues. If this is likely to occur, we have a network of experts in accountancy, tax and valuation who we collaborate with to manage your risks and ensure a commercial viable arrangement.