Business

Overage Agreements

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Overage Agreements

At some point during the sale of a property, the issue of overage may arise. An overage agreement is a legal document that sets out the terms of a payment that may be due to the seller of a property if certain conditions are met in the future. These agreements can be complex and require the expertise of a solicitor to ensure that they are drafted correctly and protect the interests of all parties involved. Our team of experienced overage agreement solicitors can provide you with the guidance and support you need to navigate this process with confidence, who can guide you through the process and ensure that your interests are protected.

What is an Overage Agreement?

An overage agreement is a legal agreement between a landowner and a developer that allows the landowner to receive additional payments if the developer sells the developed land for a higher price than originally agreed upon. This is typically used in situations where the landowner is willing to sell their land for less than its market value in exchange for a share of the profits from future sales.

Why choose our Solicitors for Overage Agreements?

Our solicitors have extensive experience in drafting and negotiating overage agreements, ensuring that our clients receive the best possible outcome. We provide tailored advice and support throughout the entire process, from initial negotiations to completion. Our team is dedicated to achieving our clients' goals and protecting their interests, making us the ideal choice for overage agreements.

How can our Overage Agreements Solicitors Help?

Our overage agreements solicitors can help you negotiate and draft overage agreements to protect your interests in property transactions. We can advise you on the terms of the agreement, including the trigger events, the calculation of the overage payment, and the enforcement mechanisms. We can also assist you in resolving disputes that may arise under the agreement, including negotiating settlements and representing you in court proceedings. Our goal is to ensure that your overage agreement is fair, enforceable, and provides you with the maximum benefit from your property investment.

Additional Information

How much does an overage agreement cost?

The cost of an overage agreement can vary depending on various factors, such as the complexity of the agreement, the value of the property, and the negotiation between the parties involved. It is advisable to consult with a solicitor or legal professional who can provide a more accurate estimate based on your specific circumstances.

How do overage agreements work?

In an overage agreement, the seller of a property may be entitled to receive additional payments (overage) if certain specified events occur, such as obtaining planning permission or development profits exceeding a certain threshold, ensuring the seller benefits from any future increase in the property's value.

Can an overage be removed?

An overage agreement can be removed or varied by mutual agreement between the parties involved. It is advisable to consult with a solicitor or legal professional to understand the specific terms and conditions of the overage agreement and explore the options for modification or removal.

Is an overage clause legal?

Yes, an overage clause is legal in the UK. It is a legally recognised provision that allows sellers to benefit from future increases in property value under specific circumstances, typically related to planning permission or development profits exceeding a predetermined threshold.