Our Service

An Overage Agreement (whether a separate standalone agreement or within a property sale agreement) will set out in detail when a payment might arise and how the payment is to be calculated.

It is extremely important to receive specialist advice on overage arrangements as Overage Agreements are very complex and need to be drafted very carefully in order to ensure that they deal with matters correctly.

The most common reason for an overage payment arising is that there is some change of use of the property at a future point, usually as a result of planning permission being obtained.

Careful thought needs to be given, and professional advice sought, to a number of different aspects of the overage agreement.

  • What is the “Overage Period” to be i.e. how long is the obligation to make an overage payment to be applicable for? It could be one year, five years, ten years or longer.
  • What will “Trigger” payment of an overage payment? Should this be the grant of a planning consent or the implementation of planning consent, or something else? The trigger event is vital and can lead to very different consequences.
  • How is the “Overage Payment” to be calculated? Ordinarily the beneficiary of the overage payment will share a percentage in the uplift in value of the property that has occurred. What percentage should that be? How is the uplift in value to be calculated? There will usually be a “base value” and an “enhanced value” and the difference between the two is the uplift, but how are these defined and calculated
  • With often significant sums at issue one big question is always how is the “Overage Payment” to be secured? This can be dealt with in a number of ways, depending upon the particular circumstances of the transaction.

We can assist with all aspects of Overage Agreements, whether you are buying a site that is subject to an existing overage agreement or whether you are selling a site and want to consider imposing overage obligations.

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Our Approach

With a team of 20 legal professionals dealing with residential development the Myerson residential development team is one of the largest in the North West. The breadth and depth of experience that the team brings is able to be fully utilised to ensure that clients achieve the best possible outcome to their proposed development project. The team is well used to dealing with very complex development matters, whether these relate to complex joint venture structures, overage issues, funding arrangements or residential unit sales.

We provide advice in clear terms tailored to your requirements to ensure that you achieve your desired outcomes with as little stress as possible.

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Our Promise & Core Values

Our Promise

The Myerson Promise - Our Partners, team of lawyers and support staff commit to giving our clients more.

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To always give you clear, jargon-free advice.
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To be completely transparent about our fees from the outset.
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Progress every matter in an efficient and timely matter.

Our Core Values

Our core values are at the centre of everything we do.

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We are always professional but ensure that we are friendly and approachable.
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We are determined and enthusiastic about supporting our clients and our people.
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We willingly take responsibility and can be relied on to be commercial, effective and efficient.

Our Experience

Examples of our recent work include the following:

  • The acquisition of a site in Salford for a development of over 600 residential properties including the site assembly from several different landowners, dealing with development funding and then managing the sale process to end purchasers. 
  • Acting for land owners concerning a promotion agreement whereby their land was put through the planning process by the promoter and then sold on to a national housebuilder.
  • Acting for landowners in relation to the sale of their land to a national housebuilder by way of a contract conditional upon planning. The contractual arrangements were complex and needed to protect and secure the landowner’s position over a period of several years, whilst the housebuilder gained planning consent.
  • The acquisition of development land on behalf of developers upon which to build more than 1,000 houses and dealing with adjoining landowners to facilitate the access to and servicing of the wider development area.
  • Acting for land owners in relation to the sale of land to a housebuilder and including overage provisions to enable the land owner to share in any value created from future development of the site.
  • Acting for developers in relation to the purchase of an industrial site in Salford on a conditional upon planning basis and then the development and sale of 400 apartments.
  • The purchase and development of a Manchester city centre residential development site on behalf of developers and the forward funding arrangements for the whole block with a PRS fund. 
  • Acting for a developer in relation to the development of high value apartments in a prestigious Cheshire location, including securing the site by way of a contract conditional upon planning and then the sale of the completed apartments to individual owner occupiers.
  • The sale of a substantial freehold reversion portfolio to a specialist ground rent fund.
  • Agreeing the joint venture arrangements between landowner and developer concerning the development of a substantial residential scheme on a Greater Manchester site.

Contact Us

Our Promise & Core Values

Our Promise

The Myerson Promise - Our Partners, team of lawyers and support staff commit to giving our clients more.

.
To always give you clear, jargon-free advice.
.
To be completely transparent about our fees from the outset.
.
Progress every matter in an efficient and timely matter.

Our Core Values

Our core values are at the centre of everything we do.

.
We are always professional but ensure that we are friendly and approachable.
.
We are determined and enthusiastic about supporting our clients and our people.
.
We willingly take responsibility and can be relied on to be commercial, effective and efficient.

Meet Our Specialists

Home-grown or recruited from national, regional or City firms. Our specialists are experts in their fields and respected by their peers.

Richard Lloyd

Richard Lloyd

Richard is a Partner and Head of our Commercial Property department

Joanne Perritt

Joanne Perritt

Joanne is a Partner in our Commercial Property department

Jeremy Lee

Jeremy Lee

Jeremy is a Partner in our Commercial Property department

Andrew Chapman

Andrew Chapman

Andrew is a Partner in our Commercial Property department.

Mark Gillies

Mark Gillies

Mark is a Partner in our Commercial Property department

Dee Dewhurst

Dee Dewhurst

Dee is a Senior Solicitor in our Commercial Property department

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