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Right to light - overage payment? Print
Following on from the above entry, it is worth making the point that when part of a plot is sold off, the seller will often retain rights to light for the benefit of his retained land. This can then be used as an indirect means of securing an overage payment when the land that has been sold is redeveloped (ie the landowner will then release the rights of light in return for a negotiated payment).

One point to bear in mind is that if land is compulsorily acquired by an LA, then the LA, or its successor in title, can override easements (such as rights of light). Thus, if the land sold off is compulsorily purchased by an LA, which in due course sells it on to a third party, then that third party – even though it is not an LA – can proceed with the development that is in breach of the right to light (subject to paying compensation). What that means, of course, is that the original landowner will not be in a position to be able to block the proposed development, and thus his negotiating position when demanding an overage payment (for releasing the right to light) will be severely weakened.

Needless to say, the instances in which this will happen are few and far between, although the issue was raised in the right to light case referred to in the previous entry (where it was held that the successor in title could only use these provisions if his development related to the planning purpose that had caused the LA to buy the property in the first place). In practice, such instances are likely to be rare but it is important to advise the client who inserts a right of light as a hoped-for overage clause, that the tactic could come unstuck if the land sold off is at any stage compulsorily acquired. See s237 TCPA 1990.

April 2005
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