House has 'Local needs'- surely a slight risk?

Special_K10

Thank you for that.
Please can I ask a naive question and ask is it the current landlord who will have the relevant details?

To give my friend credit, he did ask a few local estate agents (that sell similar houses with this restriction on) for exact details on these types of restrictions but he said they were very vague and didn't seem very helpful.
Is there a reason for this maybe, or is it just that they can vary so much that the estate agents would not have been able to give specific details?

Also, being as I am totally new to this and know very little, am I correct in assuming that these restrictions might not necessarily just be Section 106, which appears to be just regarding planning. Might they include such restrictions as having to be from/work in the local area?

Davesnave

The landlord ought to know the detail pretty well, as they would surely have considered it when purchasing. How well the local authority enforces it is another matter!

It would typically include a requirement for occupants to have grown up, or resided for a certain time in a particular area, or to be filling a key role there. That area might be of varying size, which is probably why the agents were vague in their replies.

I am more familiar with agricultural ties, a few of which were very restrictive. In more recent years, those affected by these old, outmoded ties have successfully persuaded councils to substitute a modern equivalent.

Special_K10

Hi,
So please can I ask if anyone else has had any experience of buying a house with Local needs attached to it?

Yorkie1

You could search for threads on here with agricultural occupancy restrictions / ties - a similar sort of principle.

I haven't seen a thread on your specific restriction on here over the last couple of years.

artbaron

I enquired about a couple up here in the Lakes when I was looking last year but nobody actually knew what the local occupancy terms were, what they meant, how they were enforced, when they came into being and why they were present. All I could find is that they appeared to refer to how long you'd already lived an work in some undefined area. I was just curious though, I would never buy a house with LO. Selling is difficult enough without restricting your market to 1% of the population.

Special_K10

artbaron wrote: »

I enquired about a couple up here in the Lakes when I was looking last year but nobody actually knew what the local occupancy terms were, what they meant, how they were enforced, when they came into being and why they were present. All I could find is that they appeared to refer to how long you'd already lived an work in some undefined area. I was just curious though, I would never buy a house with LO. Selling is difficult enough without restricting your market to 1% of the population.

Thank you Artbaron, that helps me form my opinion and I hope his helps my good friend.

It would not seem a good idea to buy any property with Local Needs attached to it.

Davesnave

artbaron wrote: »

I would never buy a house with LO. Selling is difficult enough without restricting your market to 1% of the population.

And your reference to that statistic is.....? One minute you say that you don't know what the conditions are, and the next you know exactly how many people could meet them!

I don't deny that buying any house with a legally restricted market is less desirable, but ultimately the wisdom of it depends upon the individual conditions attached and what the other options are.

Special_K10 wrote: »

It would not seem a good idea to buy any property with Local Needs attached to it.

I think much depends on where your friend is, what conditions are attached to this particular house, what else could be bought with a small £20k deposit and how realistic it is for your friend to save more in a time frame they deem reasonable.

They are probably the key things to consider, along with the interest rate your friend & his partner may be offered when they have researched the mortgage market properly.

I would also caution against involving yourself too deeply in this, as it is your friend & partner's decision to make. Otherwise, whatever they choose, if they're subsequently unhappy, some of the blame may arrive at your door.

(Bumping thread in the hope that kingstreet or someone else with strong mortgage knowledge sees this on a weekday.:))

Special_K10

Davesnave wrote: »

I would also caution against involving yourself too deeply in this, as it is your friend & partner's decision to make. Otherwise, whatever they choose, if they're subsequently unhappy, some of the blame may arrive at your door.

Wise advice. Thank you.

artbaron

Davesnave wrote: »

And your reference to that statistic is.....? One minute you say that you don't know what the conditions are, and the next you know exactly how many people could meet them!

I know the maximum extent of the conditions for Cumbria, which I was referring to. A LO clause in Cumbria will, at its very widest, encompass all people in Cumbria. Cumbria has a population of 1/2 million. The UK has a population of 62 million. 1/2 as a percentage of 60 is 0.8%, rounded up is 1%. The information I did get pointed to the actual figure being far smaller.

Special_K10

Davesnave wrote: »

(Bumping thread in the hope that kingstreet or someone else with strong mortgage knowledge sees this on a weekday.:))

Just also bumping it for the same reason!