- Land Investment Guidelines
- Region of high housing demand
- Sustainability study prior to acquisition
- Transport and road access
- Amenities for new developments
- Successful land track-record
- Land site holding
- Funding the planning work
- Overage payment on the land
- Title deeds and site access
- Legal advise prior to commitment
- Land investment time scales
- The buy-back stage
THIS IS NOT A LAND BANKING WEBSITE. This is an educational tool which will reveal the opportunities and pitfalls in Land Investment.
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Investment Guidelines
Overage payment on the land
Are any overage payments due on the investment land site?
Overage payments (or ‘clawbacks’) are a feature on some UK land sites. They entail original owners of land investment sites being paid a proportion of that UK land’s future value (ie once it has been granted planning permission). Land investment providers sometimes enter into these agreements with owners of UK land (farmers, the gentry etc) in order to acquire the land investment site at a lower cost.
Anyone buying land for land investment purposes should establish if any overage agreements exist on the investment land site they are considering. Land for sale which has overage agreements on it should be avoided. The best investment land is that which has been acquired outright, otherwise returns from the land investment site can be significantly diminished.
Overage payments (or ‘clawbacks’) are a feature on some UK land sites. They entail original owners of land investment sites being paid a proportion of that UK land’s future value (ie once it has been granted planning permission). Land investment providers sometimes enter into these agreements with owners of UK land (farmers, the gentry etc) in order to acquire the land investment site at a lower cost.
Anyone buying land for land investment purposes should establish if any overage agreements exist on the investment land site they are considering. Land for sale which has overage agreements on it should be avoided. The best investment land is that which has been acquired outright, otherwise returns from the land investment site can be significantly diminished.