logo

What is an overage or uplift clause?

An overage clause, also known as a clawback or uplift clause, is a legal provision commonly included in contracts for the sale of land or property. It essentially stipulates that if certain conditions are met or exceeded within a specified timeframe after the sale, the seller is entitled to receive additional payments from the buyer.

The purpose of an overage clause is to allow the seller to share in any increase in the value of the land or property beyond what was initially agreed upon. This can occur, for example, if the buyer obtains planning permission for development, leading to a substantial increase in the land's value.

Typically, the conditions triggering the overage payment are clearly defined in the contract. They might include:

  1. Obtaining planning permission for development.
  2. Selling or leasing the property for a certain price.
  3. Achieving a specific level of profit from development.
  4. Reaching certain milestones in development projects.

If any of these conditions are met within the specified timeframe, the seller is entitled to receive a predetermined percentage of the increase in value. The exact terms of the overage clause, including the percentage and duration, are negotiated between the buyer and the seller and are usually documented in the sales contract.

Overall, an overage clause provides a way for the seller to benefit from any future increases in the value of the land or property, beyond the initial sale price, by sharing in the additional profits generated by the buyer.

Looking to move house?

Looking to move house?

Be kept up-to-date with our latest properties on the market

Register Today

Read What Our
Customers Say

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the selling process a pleasure. 

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the Selling process a pleasure. Totally stress free.

"

James and his team handled a complex sale (house and adjacent land owned by a third party) with great professionalism and innovation and determination to secure our sale. He was also cognisant of our time scales in that we had not secured an onward purchase or rental property. James is an extremely approachable agent who always worked with us to successfully achieve our goals and certainly went ‘the extra mile’ when required. We cannot recommend him highly enough.

"

Cannot recommend enough! We had a particularly complicated and problematic experience trying to sell a property recently and we were so(!) lucky we had Sean alongside us to guide and support. Sean was patient, efficient and super supportive throughout the entire process. I am genuinely confident we would not have been able to do it without him! Thank you as well to Aaron, I know he did a lot of work on this one too! You two are the best and we are so thankful for all your hard work getting this one across the line! I highly recommend and look forward to hopefully working with you both again.

"

Very efficient and personable service helped us find a perfect place. Trustworthy and effective. Thank you.

"

Dear Jack, I have moved into my new bungalow and it is very nice. I just wanted to take this opportunity to thank you for all of your efforts on my behalf. You have behaved rapidly and helpfully to assist me with all of the problems that arose for me in one of several difficult projects at once. Thank you very much.

How Much is Your Property Worth?

How Much is Your Property Worth?

To find out how much your property is worth in the current market, get in touch with us today!

Book a Valuation