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Options, Pre-Emptions and Overage Solicitors
Our commercial property solicitors cut through the complexities to create certainty for all parties.- Clearly drafted agreements
- Experienced, technical experts
- Highly skilled negotiators
01782 205000
Options, Pre-Emptions and Overage Solicitors
When negotiated carefully and drafted precisely, options, pre-emptions and overage agreements can deliver enormous benefits.
Our commercial property solicitors have extensive experience of options agreements, which give buyers the option to purchase a property at an agreed price within a specified timeframe; pre-emptions agreements, giving buyers first refusal if a property owner decides to sell in the future; and overage agreements, which entitle sellers to additional future payments should a property’s value increase.
Although these mechanisms are complex, our team works with you to guide you through, ensuring you reach an agreement that minimises the risk and maximises the benefit to your business.
To get a quote or to find out more email enquiry@beswicks.com.
Meet Our Experienced Commercial Property Solicitors
Our expert commercial property solicitors are here to guide you through the negotiation and drafting of your options, pre-emptions and overage agreements, creating clarity, certainty and security for your business.
Our commercial property experts will protect your interests as they navigate the complexities of your agreement and ensure the resulting documents are tailored to your specific needs.
Options, Pre-Emptions and Overage: What You Need to Know
Options, pre-emptions and overage are complex mechanisms that can be negotiated in commercial property transactions. Each has a unique purpose and benefits.
Options
An options agreement provides a buyer with the exclusive right to purchase the property within a set time period at a pre-agreed price. The buyer isn’t obliged to buy the property but they do have the option to do so if they wish to.
During the option period, the seller can’t negotiate with or sell the property to anyone else and the buyer often pays a fee to the owner in exchange for the option.
This type of agreement is useful to buyers who may be assessing the viability of a property or waiting for planning permission or funding.
Pre-Emptions
Pre-emptions, also known as ‘a right of first refusal’, are an agreement that allows one party the opportunity to buy a property if the owner decides to sell. The buyer will be given a strict timeframe during which they must respond. If they do not respond or decline, the property owner is free to sell the premises to someone else.
A pre-emption agreement enables long-term planning and provides the opportunity to become the owner of the property.
Overage
Overage is an uplift or clawback mechanism where the seller of the land or property receives an additional future payment if the property’s value increases.
For example, overage may apply if planning permission is granted, the site is subject to development or change of use, the site is sub-divided or improved in some way, or the site is sold at a higher value.
The overage payment is usually based on a percentage of the ‘uplift’ in value or a percentage of the profit from development or sale. Overage is usually secured via a restrictive covenant or charge on the title.
Overage is a way of unlocking additional value from properties sold below full market value with buyer and seller sharing the risk and reward.
Commercial Property Legal Services
As well as guiding clients through commercial property finance, our expert team can assist with the full range of commercial property legal services, including:
- Buying a commercial property
- Selling a commercial property
- Leasing a commercial property
- Commercial property finance
For jargon-free advice, practical solutions and a responsive service, get in touch with our commercial property team. Email enquiry@beswicks.com or phone 01782 205000.
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Your questions... answered
What is the difference between pre-emption and option?
An option gives the holder of the agreement the right to buy a commercial p
Should you buy a commercial property with an overage clause?
Buying a commercial property with an overage clause can be beneficial, but
What is the overage fee?
This is the additional payment a buyer must make to the seller if certain e
How do options to purchase work?
An option to purchase (often just called an option) is a contract that give