house not selling what can we do?

StumpyPumpy

Davesnave wrote: »

The terms of the Section 106 should be spelled-out. They vary and there's much confusion. Assumptions will be made....see this thread!

Found elsewhere, this is the S106 conditions for Parc Hafod in general, which I assume (though can't confirm) apply to this specific property too:

The restrictions on the affordable housing units are set out within the Second Schedule parts I-IV and read as follows:
Affordable Housing for Sale
1.1 To construct 18 dwellings (“the Affordable Dwellings”) on plots 12, 13, 14, 16, 17, 18, 19, 20, 23, 24, 28, 34, 35, 36, 37, 38, 44 and 45 respectively as shown on plan drawing number 100/001 (revision F) submitted to the Council by the Company and received by it on November 2004 (“the Company’s Plan”) or such other plots numbers as may be agreed in writing between the parties hereto.
1.2 The initial occupation of any of the Affordable Dwellings shall (subject to sub clause 1.3 hereof) be restricted to a person (hereinafter called “the Initial Occupier) who complies with the criteria set out in Part Ill of this schedule to the satisfaction of the Council as evidenced by its approval in writing prior to the occupation of any of the Affordable Dwellings.
1.3 Upon any disposal or demise by the Initial Occupier or other or subsequent owner or person with an interest in any of the Affordable Dwellings, occupation thereof shall at all times be limited to a person or persons (“the Occupier) who at the date of the said disposal or demise have either been resident within the fanner District Council area of Montgomeryshire (“the District”) for a period of not less than three years or are employed in the District or coming into the District to take up full time employment or were last employed within the District AND they comply with the criteria set out in Pad Ill paragraph 2 and 3 of this schedule;
Part III
1,1 they have lived in the Community for a minimum of three years - OR
1.2 they were born and brought up in the Community and intend to return or have recently returned to the Community - OR
1.3 they are in full-time employment within the Community or are coming into the Community to take up lull-time employment - OR
1.4 they are coming into the Community or wish to move within the Community in order to look after an infirm or elderly close relative who is resident within the Community OR Powys County Council
1.5 they have previously lived and worked in the Community for a period or periods of not less than three years and wish to return -
AND:
2. They or their spouses do not currently own a dwelling in fee simple or a leasehold interest in a dwelling for a term exceeding 7 years a: the date immediately before their first occupation of any of the Affordable Dwellings.
AND:
3. They or their spouses have not owned a dwelling as aforesaid at any time within the period of 5 years prior to the date of their first occupation of any of the Affordable Dwellings (whether or not subject to a mortgage or legal charge) except that ownership of a dwelling during the said period which has been repossessed by a mortgagee shall not count for the purposes of this clause.

They were taken from an application in 2013 from one of the residents in Parc Hafod, who as also bound by a S106, to have the conditions lifted because they were trying to sell and even though they'd had accepted several offers, the sales had fallen through because potential purchasers were unable to secure a mortgage due to the S106.

The decision notice stated that the sale price should be at or below 35% lower than the market value, which, if the identical terrace mentioned by the OP earlier didn't have an S106 on and sold for £115k, would mean a valuation of around £75,000. Permission to lift the condition was refused.

So, unfortunately, I don't think the problems would end even if the OP accepted an offer from a qualifying person as I doubt they would get a mortgage for anything over the valuation.

However, I know little about the implications of an S106 over and above what I have discovered today, so my interpretations could be wrong, I just know that I wouldn't touch a property bound by one with a barge pole, and that advice is far too late for the OP - sorry.

SP