affordable housing

jstvj

scaredlady wrote: »

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.

It's a "later living development", hence the restriction to over 55's. Originally, the council imposed the condition that the flats could only be sold to local people, with limited income etc but that was waived, which was also said on the sales particulars.

Apart from the short statement re price on the Estate Agents sales brochure, nothing and no-one referred or explained it at all. This includes My Solicitor, the Sellers or their agents.

Although it was included with the file that I received after completion, I did not read the S106 agreement because it was between the council, developers and their bank. Having read it now and if I understand it correctly the 61% of open market price appears to refer to subsequent sales. I shall have to ask the Council as suggested by Tomtomtom. The Land Registry Certicate does not mention any price restriction at all.

Cash-Cows

Affordable housing is an oxymoron.

saverjustice

Planning obligations are causing problems and it can only get worse as house prices rise.

See https://www.S106.co.uk

jstvj

I wish to rent out my affordable property, the S106 agreement states that it must be to a qualifying person but makes no mention whatsoever about any restrictions to the rent that can be charged. However the Council are adamant that I can only charge 80% of the open market value. How can they enforce this restriction ?

saverjustice

As per my email, they can't.

The_Humph

I am in the process of buying a new build S106 house. I qualified for 30% discount to buy one due to my connection of having family in the village. IIf I want to resale in the future..my restriction is that it has to be marketed for 3 months at the discounted rate (30% less of the two valuations obtained at that time). If no buyer, it can then be marketed at normal open market value and the council lifts the covenant, but upon completion of sale..30% is paid back to council. Due to my situation, age..I hope yo stay put. Hope that helps.

jstvj

The_Humph wrote: »

I am in the process of buying a new build S106 house. I qualified for 30% discount to buy one due to my connection of having family in the village. IIf I want to resale in the future..my restriction is that it has to be marketed for 3 months at the discounted rate (30% less of the two valuations obtained at that time). If no buyer, it can then be marketed at normal open market value and the council lifts the covenant, but upon completion of sale..30% is paid back to council. Due to my situation, age..I hope yo stay put. Hope that helps.

My S106 is the same, insofar as I can sell to any "willing buyer" after the 90 days. Even a millionaire, but ONLY at the 61% discounted price.

saverjustice

The_Humph wrote: »

I am in the process of buying a new build S106 house. I qualified for 30% discount to buy one due to my connection of having family in the village. IIf I want to resale in the future..my restriction is that it has to be marketed for 3 months at the discounted rate (30% less of the two valuations obtained at that time). If no buyer, it can then be marketed at normal open market value and the council lifts the covenant, but upon completion of sale..30% is paid back to council. Due to my situation, age..I hope yo stay put. Hope that helps.

This 30% discount creates inherent tensions within the agreement, if the discount is available to anybody in the locality regardless of means and need then it doesn't meet the definition of affordable housing. In addition to that the actual discount required to allow someone who qualifies for affordable housing to purchase it may need to be 60% or more if local incomes are low, hence the "tension" that a planning inspector discovered.

Who is your mortgage lender?