Overages are never simple. A recent case (November 2020) has shown how easy it is for unintended consequences to occur. The Court of Appeal held in the case of Morris Homes Limited -v- Cheshire West and Cheshire Council that the income received by the developer on a reversionary ground rent sale was to be taken into account when calculating the sales overage payable by the developer. This could have been avoided; and is another example of the care that needs to be taken when drafting overages.
| less than a minute read
Overage : Unintended Consequences
Get in touch
Get in touch
Lord Neuberger: "The mere fact that a contractual arrangement, if interpreted according to its natural language, has worked out badly, or even disastrously, for one of the parties is not a reason for departing from the natural language."
Get in touch
Get in touch
/Passle/57bd9d773d94740310eec5b7/MediaLibrary/Images/2025-12-19-11-51-08-089-69453c2c9b03a4fc92652a15.jpg)
/Passle/57bd9d773d94740310eec5b7/SearchServiceImages/2025-12-17-15-20-33-035-6942ca415555b955e430f91b.jpg)