Overage, claw-back, uplift

An overage (also known as claw-back or uplift) is an agreement that a buyer will pay extra, on top of the original purchase price of a property, if and when certain events happen. For example, if the buyer increases the value of the land by obtaining planning permission.

There are various ways of recovering overage, and differing transaction structures, that can include:

• Conditional contracts

• Option agreements

• Overage agreements

• Restrictive covenants

As specialist residential and commercial property solicitors, we are able to advise both sellers and buyers on their options with overage and the implications on the current transaction as well as what may happen in the future.

Benefits of instructing Julie West Solicitors

Attention to detail - we are trained to pay attention to detail; we will carefully consider the documentation to ensure it is accurate and implements the terms you have agreed.

Advice - We offer all our clients a face to face meeting to go through the legal documentation before you sign, so you understand what is involved and can make sure that it’s right for you.

Explanation - we will explain what the documents mean. We’ll tell you about any important implications that may be missed by the untrained eye, so that you are fully aware of what you are going into and are prepared for any hidden traps.

Aftercare - we are there for you throughout the course of your transaction, as well as following legal completion and during the course of the overage period.

How it works

Process

Once you have made contact with us, spoken with your solicitor and decided to go ahead we will send you our welcome pack of paperwork to complete and return.  

The stages of our work for you are likely to be as follows:

Acting for seller

1. Obtain and consider title information

2. Meet with you to explore your objectives

3. Consider the best and most cost effective way to achieve those objectives

4. Report to you with advice and proposals

5. If you decide you’d like to go ahead, prepare draft documents for your approval

6. Review documents with you, make any amendments and tailor the documents

7. Once approved, progress the sale to include the overage agreement

8. Once a buyer is found, provide their solicitor with a copy of the draft agreement

9. Report to you with any amendments the solicitor raises, provide advice on what to accept and what not to accept

10. Prepare final form of document and arrange for it to be signed

11. Following legal completion of the sale, provide advice during the overage period and on triggering events as needed

Acting for buyer

1. Obtain and consider title information

2. Meet with you to explore your objectives

3. Review draft overage agreement

4. Report to you with a copy of the draft agreement, suggest any amendments

5. Present any amendments to the other side

6. Check and agree final form of documents and arrange for you to sign

7. Following legal completion of the purchase, provide advice during the overage period and on triggering events as needed

meetings

You will always be asked if you would like to meet your solicitor.  Although a meeting is not a prerequisite to dealing with overage, if you have the time, there is no substitute for meeting with your solicitor to have a tactical discussion about your aims for the work.  

We operate from our modern purpose-built office in Leatherhead, near junction 9 of the M25 and Leatherhead station. We have a range of options for client facilities and meetings, level access or historic and interesting.  If you are elderly or housebound, we can come to you.  We are also able to progress all of our work remotely and are happy to use video conferencing in lieu of in-person meetings. Your solicitor may be able to offer you an appointment out of usual office hours if it helps you.  

Acting on the connected sale/purchase

As well as providing specialist advice on overage, we are also able to act on the connected transaction. To find details of our service for selling and buying houses click here. If the connected transaction is a development plot, please telephone us to discuss.

Timescale

The overall timescale will be set by the particular circumstances of the transaction and parties involved, but generally we expect to be able to review or provide draft documents for approval within 21 days of receiving instructions.

Strengthening your position with a contribution to costs from a developer

It may be that in marketing the property, you identify a developer interested in the plot, in which case the developer would usually prepare and provide the overage agreement in its preferred form, and may even offer to pay the your legal and valuers’ costs too.

Fee list for overage

Included in our fees

All retainers include:

1. A meeting to talk through your circumstances, timeframe and the options available to you.

2. Advice from a specialist property solicitor tailored to your needs and delivered in a friendly and straightforward way.

3. Electronic copies of the completed documents for your records.

Telephone us on +44 (0)1372 383273 or complete our online enquiry form to make contact with your solicitor