Apply a restrictive covenant- Advice Required

[markpnotts]

This is my first posting and would appreciate any advice.

I have a property that belonged to my mother who has now passed away. I have since then rented out the property. The tenants have now requested to buy the property off me after living it for 2+ years. The problem is that the property has quite a bit of land with it and the planning department through initial discussions would allow a new development on the land (either a new large single building and maybe a few small ones). I am not in the position to do the development this year and may not want to do it myself anyway. Can you put a covenant on the property that would allow you to take a perecentage of any profit made on any future development over say the next 5 to 10 years?

[brian]

Um...why not simply take advice on whether building is feasible, and if so, split the land into two plots and sell the one with the house on??

[Richard Webster]

You could do what you are suggesting, but particularly in the present market, people are resistant to any kind of "uplift" clause so I think Brian's advice is sensible.

[Becky]

Hey Mark,

I also agree with Brian, with todays selling conditions I would split the land and the property. You will make more money doing this as long as you get outlinned planning before marketing your plot.

I previously sold a property where the buyer refused the "covenant" terms. Thankfully the sale went ahead in the end, but the vendor could have lost the buyer easily if he hadn't have been as flexible as he was.