We have witnessed an incredibly buoyant property market in Hawick and the Scottish Borders over the past year which has led to the average price of property in the Scottish Borders increasing by £20,000, according to the UK House Price Index.
At Bannerman Burke Law we deal with all types of property matters, relating to rights of access, the registration of titles, remortgages, and transactions involving the purchase and sale of garages, shops, workshops, as well as residential properties. We have recently been instructed by many clients who wish to purchase land for the purpose of grazing animals on or simply to increase the size of their garden ground.
The price attained for agricultural or amenity land is usually significantly lower than the price
achieved for residential development plots. Many sellers are prepared to sell land at a lower value, but they want some form of protection should the purchaser go on to develop the land in the future and sell it for a significantly higher sum.
We can help clients by drafting what is known as a “Clawback Agreement”, which will state that the seller is entitled to a specific sum of money if the purchaser goes on to develop the land within a specific time period. These are bespoke agreements and can be tailored to your needs.
The clawback agreement can benefit both the purchaser and seller as they help the purchaser to buy land at a reasonable price, which therefore makes the land more accessible to them. In contrast, they can provide a seller with peace of mind that they aren’t selling their land at a low price, for someone else then to make a healthy profit, without seeing the benefit themselves.
If you would like any more guidance on this, we would be happy to help you and guide you through the process.
Bannerman Burke Law
