affordable housing

jstvj

I have bought a new flat under an affordable housing scheme for the over 55's, which apparently was 61% of the open market value. I know the lease states that the flat can only be owned by some over 55 years old but is there any restrictions on my being able to sell it in the future price wise ?

Also, is the Council Tax Band based on the price I paid or the open market value ?

theartfullodger

Without seeing the deeds/lease we don't know what the restrictions are. Have you considered reading the paperwork??

Re...

which apparently was 61% of the open market value

- says who?? Don't wish to be harsh but that sounds implausible & perhaps the line a conman of a salesman would use...

If it was such a good deal why hadn't they gone like hot cakes???

jstvj

theartfullodger wrote: »

Without seeing the deeds/lease we don't know what the restrictions are. Have you considered reading the paperwork??

Re...- says who?? Don't wish to be harsh but that sounds implausible & perhaps the line a conman of a salesman would use...

If it was such a good deal why hadn't they gone like hot cakes???

The only paperwork I had was the Estate Agents sales brochure and thereafter, the Lease from my Solicitor. I have read these in great detail and neither mentions any restriction on my selling in future. However, I did ask my Solicitor for the file on completion, which contained a document S106 agreement, in which the local authority gave permission on condition certain flats were sold for 61% of the open market price. Its all quite legally worded but I cannot see anything to say that a subsequent owner must give the same discount. However, the reason for my question is because I read another post where the owner said he was restricted and also potential buyers could not get a mortgage. That made me wonder if all S106 agreements have the same restriction and I had not understood it.

Incidently the flats did sell like hotcakes.

tomtontom

You need to contact the affordable housing officer at your council. I would be very surprised if the resale was not restricted to the same percentage value, but they can tell you for certain.

For future reference, you really should have asked this before agreeing to buy.

theartfullodger

jstvj wrote: »

..... I did ask my Solicitor for the file on completion, which contained a document S106 agreement, in which the local authority gave permission on condition certain flats were sold for 61% of the open market price.....

Was that a "Right to buy" deal where the tenant could buy with a bung from the taxpayer?? Or did it have requirements of who could buy?? If not where in UK, please??

Why on earth would a council sell an asset for less than they could otherwise get? (Apart from when forced by Thatcher's right-2-buy..)

jstvj

.

For future reference, you really should have asked this before agreeing to buy.[/QUOTE]

The only reference to this was on the sales brochure which stated that the flats are subject to a legal agreement between the developers and local council that restricts the sale price to £xxx.

At that time I had no reason to enquire any further before buying.

theartfullodger

s106 is where some property must be "affordable".. a condition of the planning approval.

PixelPound

chadwicklawrence.co.uk wrote:

It should be noted that s106 obligations are registered as a Land Charge and therefore the potential burden runs with the land. This means that individual purchasers of plots where the s106 obligation has not yet been discharged could be held liable for outstanding obligations. It is imperative therefore to obtain confirmation that all payments due pursuant to s106 Agreements have been paid when purchasing a new build property. Where payments are not actually due, for example where payment is only due under the agreement when all plots have been sold, then one should ask the seller to provide a letter from the relevant Planning Authority confirming that in the event of the builder defaulting, the council would not pursue the plot purchaser.

http://www.chadwicklawrence.co.uk/legal-update/property/section-106-agreements/


So it will be on the charge register, so the buyer could know you got it cheaper. I think you may need to contact your LA, or maybe you could ask your solicitor if there are conditions under which the discount has to be paid back.

jstvj

theartfullodger wrote: »

Was that a "Right to buy" deal where the tenant could buy with a bung from the taxpayer?? Or did it have requirements of who could buy?? If not where in UK, please??

Why on earth would a council sell an asset for less than they could otherwise get? (Apart from when forced by Thatcher's right-2-buy..)

No it's a new development, not right to buy and the seller was a private developer not the council. Cornwall.

jstvj

theartfullodger wrote: »

s106 is where some property must be "affordable".. a condition of the planning approval.

Yes it was

scaredlady

I think I have seen this sort of thing when I was looking for property on the IOW.
If you are over 55 you purchase the property at one price,
if you are under 55, or I guess you do not wish to be stuck with any sort of conditions if over 55 , you purchase at a higher price.