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Section 106 and Leeds BS.
Sam3773
Posts: 3 Newbie
Hi all,
I'm at the business end of selling a shared ownership flat which is covered by a section 106 agreement. We were due to exchange on Wednesday but the buyer's lender (Leeds) then had a problem with the 106 agreement, specifically the length of time the lender would have to find a buyer who meets the eligibility criteria before they could sell to the open market in the event of repossession. The 106 agreement said 6 months, but Leeds criteria is 3 months.
The council today sent a formal letter saying they wouldn't enforce the 6 months stated in the 106 agreement and would do 3 months as per the lender's requirements.
My question is, has anyone had this before? And what's the likelihood the lender will accept the letter as suitable? The only other option is to apply for amend the 106 formally which would take months! I can't see why a formal letter from the council wouldn't be sufficient?
Cheers,
Sam.
I'm at the business end of selling a shared ownership flat which is covered by a section 106 agreement. We were due to exchange on Wednesday but the buyer's lender (Leeds) then had a problem with the 106 agreement, specifically the length of time the lender would have to find a buyer who meets the eligibility criteria before they could sell to the open market in the event of repossession. The 106 agreement said 6 months, but Leeds criteria is 3 months.
The council today sent a formal letter saying they wouldn't enforce the 6 months stated in the 106 agreement and would do 3 months as per the lender's requirements.
My question is, has anyone had this before? And what's the likelihood the lender will accept the letter as suitable? The only other option is to apply for amend the 106 formally which would take months! I can't see why a formal letter from the council wouldn't be sufficient?
Cheers,
Sam.
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