Removing a section 106 from a building plot?

fabh17

Has anyone got any advice on getting a section 106 removed on a building plot? When we originally applied for the planning permission on our land we where told this is all they could offer us - 100 sqm 3 bedroom home which we could build but would be restricted in size and worth 60% of the market value. It was fine back then, we had 2 children, we started ground work then due to various reasons work stopped, so the groundworks are in and thats it, enough work to satisfy the council that a start has been made. 5 years later we now have 4 children so this house will be far too small.. We have contacted the council and they refuse to let us make it bigger saying it would not benefit us?!!!!. We want it removed.
Considering taking some advice from a solicitor but don't want to waste money if it cannot be done.
Has anyone been successful at removing one?
The council are very unhelpful.
If someone can point us in the right direction that would be great. Thanks

anselld

You probably need advice from a planning consultant rather than a Solicitor.

Removal of the S106 agreement is not really what you want as that is the only means of consent to the current build. What you need is consent to a larger build, however there must be some planning grounds why this is not acceptable to the Council.

Can you not complete the existing development and sell on? Or sell on as is.

fabh17

The way we see it is this: it will cost exactly the same amount of money and time to build if it was an NONE affordable- thats if we even get a mortgage to build it - seems the section 106 clause is causing loads of problems as this would be only worth 60% of the market value once completed. We just want it removed so we can sell the plot on for normal market value. We don't want to live in the area anymore.

ProDave

Isn't S106 the mechanism by which you pay a bribe to the council to subsidise local amenities in order to get planning permission in the first place (without agreeing to pay the bribe, PP would be refused)

So it's too late to avoid that. Self builders are now exempt buy you must apply for the exemption before you start so that horse has bolted.

What you need now is an amended planning application to build a larger house. That may or may not be granted. Alternatively complete the house you have PP for and then apply for permission for an extension. You might just be able to extend it under permitted development once complete, unless your PP has removed permitted development rights.

fabh17

Its exempt from Community Infrastructure Levy.
Building it is not affordable for us, we would have to raise the funds ourselves as there are no lenders iut there that fit our citeria, this would take around 2 years for us to build ourselves, we are a family of 6 squashed into a 3 bed bungalow and we need to move asap. There are not many places to rent which don't cost a small fortune plus very limited around this area. Also we don't want to live in the area anymore. Withe the sec 106 the plot would be worth 50k however with it removed it would be £150 - 200k we need to release the money as a deposit for a bigger house somewhere we want to live.

DTDfanBoy

Unless the area you are in no longer has any housing affordability issues removal of the s106 is pretty unlikely.

Your figures also sound well off the mark, it's pretty unlikely that a plot with permission to build is going to be worth 150k less than a plot of land with no permission to build, regardless of the s106 conditions.

AdrianC

fabh17 wrote: »

Its exempt from Community Infrastructure Levy.

So what's the s106 restriction?

Building it is not affordable for us, we would have to raise the funds ourselves as there are no lenders iut there that fit our citeria

I think you might have that the wrong way round - you don't fit any lender's criteria.

this would take around 2 years for us to build ourselves, we are a family of 6 squashed into a 3 bed bungalow and we need to move asap.

Perhaps you could have thought of that before following the usual Grand Designs rules and having more children part-way through the project?

Also we don't want to live in the area anymore.

Such, of course, is your choice - but you need to factor the costs into that decision.

Withe the sec 106 the plot would be worth 50k however with it removed it would be £150 - 200k

That's nice. If it was for a 10-bedroom mansion in a different area, it'd be worth millions. But that's not what you own currently, either.

we need to release the money as a deposit for a bigger house somewhere we want to live.

That's not really the council's problem, is it?

The s106 restriction was applied to the PP for what the council thought were good reasons. We don't know what they are, because all we know is that the restriction isn't infrastructure levy. I'm going to guess it's an agri tie? Without that s106, you wouldn't have got permission at all. The fact that you've started the project, stalled the project, had more kids - and now the project's not affordable or suitable for you, is not really the council's problem, is it?

This isn't about you or your family or your choices. This is about the council deciding that plot was not suitable for a larger property, or for an unrestricted property. What's changed about the plot to make them change that decision?

lincroft1710

As OP is quoting "60% of market value" I also think there an agricultural restriction has been placed on this building plot.

Brock_and_Roll

See OPs other post - they are looking to buy another property with an Ag Tie so reasonable assumption current property has similar tie.


There is of course some irony here that the OP is looking to circumvent the Ag Tie on the existing property to get full open market value (and deprive a future agricultural worker) but keen to get hands on another property with an Ag Tie at a significant discount to what the open market value wood be.

DTDfanBoy

It won't be an agricultural restriction, it will be the modern version ie affordable housing for local needs occupancy condition.

For obvious reasons councils who operate these schemes will not be accommodating to those who wish to make use of such schemes merely to boost their own net worth, in this case before a house has even been built