Section 106 Agreement.....

itsnothing

Just a question wanting to know what others views are.

My shared ownership home that I brought when I was 18, has been in the process of selling for the last 3 months.

I am doing a simultaneous purchase, stair casing to 100%, and transferring it over to the person buying the property on the same day. This has been agreed that I can do it as the housing association has not been able to find anyone to buy my share.

However the father is buying the property for his daughter via his company, they are based in cyprus and the girl is at university here for 5 years.

The section 106 reads as follows:

The agreement placed an obligation on the original developer to provide an element of Affordable Apartments (eight in total) and to transfer ownership of these to an approved Housing Provider (i.e. the Housing Association in this case). As part of this there is a further obligation in the section 106 Agreement that all 'Initial' transfers to purchasers of the affordable apartments must be approved by the Council, which such approval not to be unreasonably withheld.


Now my solicitors and the buyers solicitors do not see any reason why the company could not buy it, because this states the initial transfer, which we assume was me when I first brought the property as a new build property.

The housing associations solicitors are not so sure and think's, the section 106 prevents sales except to people who meet the criteria set out by the local authority in that they must be local residents.


We have come to a complete stand still and are now waiting for the local authorities opinion.

I just wanted to know what your views were?

Fire_Fox

Shared ownership is supposed to be affordable housing for local people. I don't see that is matters what we think, you are at the mercy of the council since they still own a proportion of the house. If you had done the staircasing head of time the situation would be clear cut.

itsnothing

It's not the council that own it.

Richard_Webster

I would try to look at the real wording of the s106 agreement.

The section 106 reads as follows:

The agreement placed an obligation on the original developer to provide an element of Affordable Apartments (eight in total) and to transfer ownership of these to an approved Housing Provider (i.e. the Housing Association in this case). As part of this there is a further obligation in the section 106 Agreement that all 'Initial' transfers to purchasers of the affordable apartments must be approved by the Council, which such approval not to be unreasonably withheld.

That isn't the agreement, but a summary prepared by someone of what it says (or what they think it says), so it will be very important to look at the actual wording rather than a mere summary.