Section 157 housing act help

devon007

I know this is an old post but in case it comes up again - in South Hams they will sometimes apply another part of that Section regulation - the buyer needs to have worked for 7 of the previous 20 years (not consecutive years) within the District.

I recently purchased a property where you needed residence or local connections, after coming back to the area 18 months ago from Wales where I moved in 2010. I had lived in the area from 1995 to 2010. I had still been working in Devon during that period but across various towns/cities as a locum through Somerset/Devon/Cornwall, although I now worked permanently in South Hams. I was allowed to buy :-)

jaxb

Devon007
I am currently trying to buy a house in the South Hams District which is subject to the Devon Covenant, and am hitting a wall despite having been born in Cornwall and lived and worked in Devon from 1993 until 2010, when I moved to Hampshire for work.
I am now returning to Devon; I have a job with a small local business within the Dartmoor National Park, aging/ill parents just across the border in Cornwall, and family and friends living and working in Devon.
I believe I fit the spirit of the legislation but seem to be getting nowhere fast.
Who did you present your situation to at South Hams Council?
Any suggestions and help welcomed.

thor.nogson

Hi there
My partner and I are in a similar position - mortgage was approved on a house in South Devon, then the issue of the section 157 covenant came up and whilst both of us buying the house have lived in Devon our whole lives, NatWest have now retracted the mortgage offer because of:
"high risk quick resale potential should you default on your mortgage payments".

This Devon rule was a nice sounding idea - aiming to prevent second homes and empty houses for half the year in South Devon (of which there are already many!) and to prevent local people being outpriced, but it's making it impossible for the very same locals to buy a house in the first place!
So far been turned down by NatWest, Lloyds and Halifax and advised HSBC also say no to anything with a covenant.
Have written to the Local Teignbrdge council general email enquiry address and looking for anyone willing to lend!

Davesnave

thor.nogson wrote: »

So far been turned down by NatWest, Lloyds and Halifax and advised HSBC also say no to anything with a covenant.
Have written to the Local Teignbrdge council general email enquiry address and looking for anyone willing to lend!

I think I'd approach a specialist mortgage broker. It's unlikely that you will get a deal at normal rates, but there may be a lender out there willing to take the risk for a % rate you could also accept.

JHosk

I have similar issue in that the 157 Restriction is in place and am unfortunately not local to the area. However my son is local to the area but I don’t want the vendor to know my connection. Can this be kept private between the council and myself regarding my connection?

Murphybear

Davesnave wrote: »

You can take it from me that there are rules regarding restricted housing which are not enforced in some parts of rural Devon, but in any event, it seems like the OP is willing to comply in due course.

Interesting. We lived in rural Devon for years and when we were house hunting we saw a perfect property at a very reasonable price. It was restricted to people living in the village. We had lived in the local area but not in the village. We were told we couldn’t have it.

Davesnave

Murphybear wrote: »

Interesting. We lived in rural Devon for years and when we were house hunting we saw a perfect property at a very reasonable price. It was restricted to people living in the village. We had lived in the local area but not in the village. We were told we couldn’t have it.

My comments on this thread were based on what I've found personally, having lived 'illegally' in a restricted property for over 10 years.

And because it's been over 10 years now, the council can't evict us; they'll have to grant us a Certificate of Lawful Development when and if we apply for one.

There was a risk buying a property with special conditions on it (not a S154 or S106) for cash, knowing we couldn't comply with them, but we took advice and decided it was very low. As with any chance one takes, the odds have to be weighed against the potential advantages.

There are many District councils in Devon, some more flexible and less rigorous in their approach to specific things. This is why some areas have more redundant farm buildings becoming residential properties and others have fewer. It's also why wind turbines had a faster take-up in some locations where planning permission was easier to achieve.

need_an_answer

JHosk wrote: »

I have similar issue in that the 157 Restriction is in place and am unfortunately not local to the area. However my son is local to the area but I don’t want the vendor to know my connection. Can this be kept private between the council and myself regarding my connection?

OLD THREAD.

You may be better advised to start a new thread as this one dates back to 2015 and gives advice based on stamp duty obligations that have since changed.

Your son providing he is a homeowner and wishing to purchase a property on your behalf would now have an additional 3% stamp duty to pay.