Renovated farm structures present a potential for transformation; however, potential buyers are cautioned about the hidden "overage clause" issue.
High Lea Farm Up for Sale via Online Auction with Overage Clause
High Lea Farm, a former butcher's shop and associated buildings in Witchampton, Dorset, are available for purchase through an online auction. Prospective buyers can submit their bids at any time on the Plotfinder website, with more details and viewing arrangements available through the marketing agent.
The property, which includes a two-storey red brick building, modern WC and shower block, barns arranged in a 'U' shape, a derelict grain mill, and additional structures formerly housing a shop and café, offers a unique opportunity for development. However, buyers should be aware of an overage clause attached to the sale, which could result in additional costs in the future.
An overage clause, also known as a clawback clause, means that if the buyer later obtains planning permission or the land increases in value, a percentage of that increased value or profit must be paid back to the seller. The specific terms of the overage clause for High Lea Farm, including the percentage of uplift owed and the number of units allowed under permitted development, are detailed in the legal pack available through the selling agents.
If the new owner develops the existing buildings into residential dwellings or holiday cottages, a percentage of the value uplift would be paid back to the seller. This clause entitles the seller to a share of any increase in property value from future development or change of use.
For prospective buyers, an overage clause affects costs as follows:
- Additional future payment: If the property's use is changed, or certain permissions are obtained (like planning permission for development), the buyer may have to pay an agreed percentage of the uplift in value or profit above a threshold to the seller.
- Uncertainty in total cost: Because the overage payment is contingent on future events, buyers must factor possible payments into their financial planning, which may complicate financing or reduce the effective value.
- Time limit: Some overage clauses have a time limit (e.g., 5-10 years) during which the clause can be triggered.
- Trigger events: The clause will specify exactly what triggers a payment—commonly obtaining planning permission or sale/development of the property.
Subscribing to Plotfinder.net provides access to over 15,000 building plots and properties for potential buyers. The site also offers off-road parking and a paddock, with dual access points. The auction for High Lea Farm does not have a fixed auction date.
For more information or to arrange a viewing, contact the agent directly. The legal pack is available through the marketing agent or auctioneer for High Lea Farm. The auction for the property can be found on the Plotfinder website.
- The prospective buyer of High Lea Farm, up for sale via online auction, should be aware of an overage clause attached to the sale, which may result in additional future payments if the property's use is changed or certain permissions are obtained.
- The overage clause for High Lea Farm entitles the seller to a share of any increase in property value from future development or change of use, as a percentage of the uplift in value or profit above a threshold.
- Upon developing the existing buildings into residential dwellings or holiday cottages at High Lea Farm, the buyer would have to pay an agreed percentage of the value uplift to the seller under the overage clause.
- The uncertainty in total cost for High Lea Farm buyers stemming from the overage clause could complicate financing or reduce the effective value, since the overage payment is contingent on future events.
- To learn more about the overage clause and other details about High Lea Farm, including financial planning, paddock, off-road parking, and dual access points, prospective buyers can access the legal pack and contact the agent directly for more information and viewing arrangements.
