Challenge
Vail Williams was instructed by the former landowner of a site, which had scope for residential development in Surrey, to provide advice on an existing overage payment clause associated with the land, now owned by Charles Church (Persimmon PLC).
Persimmon had submitted planning permission for a residential development on the site, which had been refused at appeal some years earlier. They considered the potential development to be marginal because of the terms of an existing overage provision and were not prepared to progress a new planning application, until this was resolved.
How we helped
- Undertook detailed financial appraisals to assess the potential residual land value, and considered the scheme’s viability based on the overage clause
- Advised on the commercial terms of a Deed of Variation required to amend the contractual terms of the overage payment
- This enabled a new planning application to be submitted which we closely monitored through to the grant of detailed planning consent
- Provided expert analysis to our client on the technical information provided by Persimmon
- Undertook a land valuation based on the planning consent, including assessing the gross sale values, the affordable payment, construction costs, fees, and developer’s profit
- This included the appointment of consultants to validate the construction costs
- We then undertook detailed negotiations with Persimmon, agreeing the key appraisal inputs, associated land value, and hence the overage payment, without the need for third party determination.
Without the support of Vail Williams, we would not have been able to reach an agreement with the developer, which could have resulted in the scheme not moving forward at all, and the loss of any overage payment. Vail Williams guided us through the process liaising closely with our solicitor, providing excellent advice securing a significant financial settlement.
Client representative.
Result:
- Expert commercial insight, together with residential land valuation, development and planning advice allowed us to secure a significant payment
- The amended Overage Deed enabled Persimmon to submit a planning application for 30 dwellings including 12 affordable units
- Planning permission was secured
- Technical valuation and subsequent negotiations with the developer, saw us reach a settlement on the market value land price
- This resulted in a significant seven figure overage payment to our client.
Get in touch
If you think you may need similar support to that described here, or you would simply want to have an informal chat with a member of our team to discuss your property needs, get in touch.
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