Should you buy a commercial property with an overage clause? Commercial Property

Buying a commercial property with an overage clause can be beneficial, but it comes with both advantages and risks. 

You can usually expect to purchase your property with lower upfront costs, making it more affordable, and if the uplift in value doesn’t materialise, you won’t need to pay any extra. This should be balanced though with the long-term commitment that you are entering into, the potential future financial obligation and the fact that calculating the value of an ‘uplift’ can be complex and require negotiation.  

You should get legal advice from an overage expert if you are considering buying a commercial property with an overage clause to ensure the purchase aligns with your business goals, finances, and willingness to manage future obligations.