Section 106 Affordable Housing- who will lend?

Yoe

evanowen wrote: »

Don't give in, tell Nationwide to hang on while you sort the agreement out.

Ok how? We don't really want to tell the developer that Nationwide threw the mortgage incase they sell it to someone else and we lose our reservation.

How can we "sort the agreement out"?

Thanks

evanowen

Call the Local Planing Authority and tell the you need to vary the terms of the agreement.

Who are the developers? I could probably sort the whole agreement out for them so that they can sell the dwellings without all this hassle, if Nationwide won't lend on it you might be OK with Halifax but they need a 20% deposit.

Yoe

evanowen wrote: »

Call the Local Planing Authority and tell the you need to vary the terms of the agreement.

Who are the developers? I could probably sort the whole agreement out for them so that they can sell the dwellings without all this hassle, if Nationwide won't lend on it you might be OK with Halifax but they need a 20% deposit.

The Developers are Cavanna, we did go to Halifax but they need another £10,000 deposit on top of what we already have. Were going to contact our solicitor and get them to contact the council

eeeeebbbbbb

Nationwide can currently potentially lend up to 25% on a new build site (accross their group of companies as a maximum) - an application will usually fall at a late stage with them because their current procedure is to leave the S106 being agreed or declined to a solicitor, so you will almost always loose any booking and valuation fees paid to the lender by the time the case is declined with them. Their guidelines currently clearly state the restrictions must end if the property has not exchanged contracts after 6 months (on re-sale). The ONLY way you will get a case through with them if this is not the situation is by getting the S106 amended. There is no point trying to hide this from the vendor because their solicitors will need to know that the S106 is being amended. In fact if you have paid a deposit to reserve the plot with most new build properties you will also have agreed to a timescale for exchange of contracts, so it would be in your interest to get this deadline extended if possible.

Halifax also will not lend where restrictions continue and will currently lend a max of 25% on new builds on a development (accross their group of companies) as a maximum, if they are going to decline your application based on a restrictive S106 they do so usually based on valuer's comments. Again the only way they will lend if they have declined due to a particular scheme being too restrictive is to have the S106 changed. They too do not like restrictions on who the property can be sold to or on property re-sale value which last for longer than a few months.

Would be very interested to know how you got on, and whether you have found a lender to complete on this purchase?

eeeeebbbbbb

evanowen wrote: »

Call the Local Planing Authority and tell the you need to vary the terms of the agreement.

Who are the developers? I could probably sort the whole agreement out for them so that they can sell the dwellings without all this hassle, if Nationwide won't lend on it you might be OK with Halifax but they need a 20% deposit.

Would very much like to talk to you - do you have a website that I can message you via?

QueenAmidala

I was just wondering how you got on? I am currently trying to purchase a S106 home, Halifax are the only lender interested with a 20% deposit. My problem is with my County Council, they are really not wanting to amend the 106 and are now ignoring emails - very frustrating. They surely have no choice but to amend as otherwise they would have two empty so-called affordable houses?

Dobbydog

A couple of years down the line and my daughter is in exactly the same situation as the people who started this thread so I am kicking myself for not having read all this when she first embarked on trying to buy affordable housing on a Section 106 agreement. It does seem however that Halifax is still only lender willing to offer mortgages on these properties (in Cornwall that is) but the local council and the housing association with whom she was registered did not so much as mention that there are sometimes problems for would be purchasers. This is a staged development by a small developer and I am now really worried that even if she manages to get a mortgage, if the other houses don't sell and he doesn't recoup his losses, there will be real issues with getting any initial problems with the buildings,site etc sorted out. Evanowen Are you out there and what is your take on the situation please?

kingstreet

Dobbydog wrote: »

I am now really worried that even if she manages to get a mortgage, if the other houses don't sell and he doesn't recoup his losses, there will be real issues with getting any initial problems with the buildings,site etc sorted out.

Is there a guarantee/warranty, such as NHBC or Zurich 15?

armandog

Hi there, is this the development in Crowlas? We are going through the same thing!

Lou24

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