Existing Section 106 Agreement - Can I challenge this

nl1982

I have a property which I purchased in 2006. When I purchased the property I was aware this had a s106 agreement attached to this with the obligation in respect to selling it to a person of a specific age who had lived in the town for a period of 3 to 5 years e.g. a persons under the age of 30 who had lived in town for over 3 years or a persons over the age of 30 who had lived in the town for over 5 years.


As I had lived in the area all my life this was not a concern and I was able to secure a mortgage [pre 2007 crisis].


I am now looking at my options with my girlfriend and am being advised I cannot secure a buy to let mortgage due to the s106 obligations and also have concerns that any future buyer will also struggle to secure a mortgage.


What I have established is that when the agreement was put into place this was for 8 2 bedroom houses one of which is mine. When discussing with other residents they have not heard of the agreement when they purchased the properties and did not fit the criteria I have referenced above.


Given the information I am receiving do you think I have a case to challenge the local authority given the other properties have not followed the agreement that I no longer need to comply with this.


I would welcome any thoughts from parties or people who have any experience in this area or have managed to modify s106 obligations.

G_M

What the other owners do/or do not, do is irrelevant. Just because I fiddle my taxes does not mean you should.

I asume when you purchased you knew of the Restriction ("As I had lived in the area all my life this was not a concern"), and therefore realised that at some future date, when you sold, it would apply to future buyers?

You can, of course, challange the Restriction and seek to have it removed. I'm guessing the Local Authority imposed it, so speak to them.

Davesnave

In 2009, purchased a property outright which had an occupancy restriction on it (not a 106) imposed by the council. No one ever checked whether I was entitled to buy it.

Despite the above, I doubt that the council would be willing to remove the restriction. Others with similar properties have tried and met with rejection.

However, I have certain knowledge of similar properties having their restriction lifted in the county next door.

The moral of the above is that it's worth trying, but the individual proclivity of the council in your area will be the factor controlling success.

Richard_Webster

Unlikely a Council would remove a restriction unless it lost a court action - and I am not sure what grounds you would have for bringing such a case. s106 agreements are used rather than planning conditions because planning conditions can be challenged on appeal, s106 can't.

Council might indicate that it would not enforce in a particular case - but how does that help a lender that lends and wants to be able to sell int he future if the borrower defaults.

Sorry but you did know about the restriction so you can only blame yourself.

princeofpounds

As an aside, it just goes to show you how ridiculous the planning system is, that it has to control and micro-manage things in this way.

Why on earth should councils be dictating who gets to live in properties and who doesnt?

(perhaps with the exception of the genuinely vulnerable elderly and disabled, who may well need special provision)

It's not as if these are even council-owned properties for the poor. Just plain old houses.

There was a system of governement that used to allocate living space by age, locality and job. I believe it was popular in Russia in the 20th century and still enjoys a following in North Korea.

G_M

Chairman Mao introduced a similar system in 1949.

China now follows 'Communism with Chinese characteristics' which = a form of free market, so now it is (Party-backed) entrepreneurs who now decide which farmers must move into tower blocks which they are building on the farmland....