Overage and Uplift
Overage and Uplift arrangements concern the terms on which land can be sold but with the right reserved for future payment to the seller in the event that the land subsequently benefits from the grant of planning permission that generates additional value. The contracts for such arrangements provide for the future calculation of any additional value and the terms on which payment will be made by any future owner to whoever holds the right to receive payment at the time. These type of arrangements evolved in the public sector and now apply to virtually every sale of land by the state but the mechanism can be applied to any sale of land in private ownership. Such arrangements frequently run for a period of 21 years from the date of sale and are on terms that any increase in value is shared equally between the original seller and the future owner.