SME Legal Services

We were instructed to act in connection the disposal of a land locked plot of land to an adjoining owner with development potential. Our Client took a notional value on sale and we dealt with the negotiation and creation of covenants to secure a fair proportion of the uplift in value of the site once it was developed. The negotiation of the covenants involved the creation of certain trigger clauses providing for notice to be given on the grant of planning permission and the right to charge interest on payments the "earn out" payable to the Client following planning consent being obtained.

Upon the development of the site completed we entered into negotiations with the developer to secure a significant pay out for our Client to represent the up-lift payment. The imposed covenants operate so that any further developments in the future on the land would also yield further payments.