Glossary
Overage: Clawback, uplift clause
A seller's right to a share of any later increase in value, usually from planning.
What it means
Overage is a clause in a land sale that pays the seller a share of any later uplift in value, typically when planning permission is granted or the land is sold on. Terms vary widely, often 25 to 50% of the uplift for 10 to 25 years. It lets a seller part with land cheaply without giving away its development potential, so a buyer must treat it as a cost when working out the profit from planning.
Worked example
ExampleLand bought for £60,000 with 30% overage on any planning uplift.
- Value with planning
- £744,000
- Uplift
- £684,000
- Overage at 30%
- £205,200 to the seller
Overage can take a third of your planning gain. Read the trigger and the length before you buy.
Information, not advice. Example figures are fictional and for illustration only.