Removing Section 106 from an affordable home

leafygreen

I bought my affordable home in 2008 and it is subject to Section 106 restrictions on sale and rent of the property. I am looking at moving away from the area and would like to rent my house out for a couple of years until I’ve decided where I want to live. The problem is that under the section 106 I can only let my property out at a capped rent, currently £128 per week, which would barely cover my mortgage repayments and certainly not allow for any interest increases or maintenance costs. Furthermore, I think it is unlikely that I would obtain a Buy-to-Let mortgage product due to the S106 restrictions. I spoke to a local solicitor today who suggested I may be able to get the S106 removed but he didn’t have experience of this and wasn’t clear how I should go about it, other than to approach the local council myself, which I don’t want to do until I am armed with more facts.
I support the concept of affordable housing, after all it has happily housed me and my son for the last 6 yrs, however homeowners should not be penalized for having a change of circumstances surely? Does anyone have any experience of this or suggestions as to how I should proceed with this?

princeofpounds

I support the concept of affordable housing, after all it has happily housed me and my son for the last 6 yrs, however homeowners should not be penalized for having a change of circumstances surely?

You do realise this is a bit of what we call cognitive dissonance?

You support affordable housing when it's everyone else who is susidising it, but not when you have to do it.

You can probably buy your way out of the restriction, by making a bribe, sorry, offer to the council, but that's probably not the answer you are looking for.

To be honest, I also agree the restriction is silly. It shows just another inefficiency of 'schemes' that do little to address the root cause of the housing crisis.

00ec25

leafygreen wrote: »

I support the concept of affordable housing, after all it has happily housed me and my son for the last 6 yrs, however homeowners should not be penalized for having a change of circumstances surely?

so you support it as long as it does not stop you doing what you want to do whilst denying the opportunity you benefited from to others not in your now improved position. Cake and eating springs to mind

your solicitor is correct in that there is potential to remove them but you are unlikely to do so without some form of professional help , I suggest you google "removal of section 106 agreement". Lots of info out there on it but choose your helpers very carefully as you need to avoid "experts" whose only interest is the fee you pay them and who are neither lawyers nor planning consultants
https://www.google.co.uk/search?client=opera&q=removal+of+section+106+agreement&sourceid=opera&ie=UTF-8&oe=UTF-8

leafygreen

I'm not in an improved position exactly. I'm coming to the end of an IVA so am credit blacklisted. Until I've rebuilt my credit rating I'm going to find it difficult to buy another house. I need to move away from the area for personal reasons and want to rent the house out until my credit is rebuilt. I'm not deliberately seeking to deny others the opportunity of affordable housing or to profit from it, I just want the mortgage covered (which would be interest free)!

AnnieO1234

I'm sorry but with the info about your credit you will struggle to find any BTL mortgage product. That being the case don't waste money chasing down the s106 removal. Also depending on where you are located you may not have a snowball in hell's chance of getting the rental restriction removed.