‘Protect sales with uplift clause’

FARMERS THINKING of selling land to speculative long-term developers are being urged to consider including an uplift clause in the contract.

Jonathan Smith of agent BK said this would ensure they share in any windfall if the site eventually gets planning permission for housing or other developments.

However, he said asking for too much could put off potential purchasers.

“About 25-30% over 20 years should still be viable for speculative buyers.”

But inserting an uplift clause might not be appropriate in all circumstances, said Mr Smith.

“In some cases it might be better to ask for a higher upfront payment.”

This could apply when there was a negligible chance of consent being granted during the vendor‘s lifetime and there were no descendants.