How is a Local Occupancy restricition enforced?

Ben_Fogles_Dog

If a cash buyer was to buy a house with a local occupancy restriction and move in how would the restriction be enforced Is it a case of forced sale or a fine?

Cheeky_Monkey

I would've thought that you wouldn't be able to buy it in the first place if you didn't meet the criteria as, I believe, the restriction would be noted on the Title Deeds.

Ben_Fogles_Dog

That sounds likely but an estate agent told me that a way some people got around it was by purchasing the property then renting it out to a local person for x months while they also rent a property in the area while they wait to meet the local criteria.

Cheeky_Monkey

Ben_Fogles_Dog wrote: »

That sounds likely but an estate agent told me that a way some people got around it was by purchasing the property then renting it out to a local person for x months while they also rent a property in the area while they wait to meet the local criteria.

But that won't 'get around it' at all if you can't buy it in the first place!

Ben_Fogles_Dog

Hence the "but" :-) Is it mentioned in the deeds or is it down to the local council planning department? If it is mentioned in the deeds, who actually enforces it at the time of purchase?

This article is old but would suggest that it is perfectly feasible to buy a property with a restriction in place as it isn't enforced properly.

A quick google will show a Daily Telegraph article suggesting they aren't enforced properly (I can't post links). A quick extract:

"Worse, local occupancy restrictions are not properly policed, allowing brazen buyers simply to ignore them. "We sold a property to someone who only partially filled the criteria," says Blue. "They did already own a home in Cumbria, which they were claiming was their principal residence when, in fact, it was clearly a second home. Their solicitor warned them that they should not go ahead with the purchase, but they jolly well did go ahead. No check was made and, as far as I know, they are still living in the property."

EachPenny

It is all going to depend on the exact wording of the restriction and who put it there.

There is a big difference between 'Occupancy' and 'Ownership' and even the definition of 'Local' is subject to variation.

It might be possible for anyone to buy a property, but only someone working in a 10 mile radius (for example) would be allowed to live in it.

Without knowing the wording of the conditions attached to the property you have in mind it is impossible for anyone to give you more than just general advice.

And my general advice would be: "Don't think you'll be able to buck the system and get away with it. It could prove to be a very expensive experiment."

Ben_Fogles_Dog

Thanks for the reply. Anecdotal evidence suggests that you can buck the system, there are certainly ways to buy and then after 6 months of local work move in as you now qualify as a local. However, none of that really answers my original question which is how is it enforced and what are the consequences?

EachPenny

Ben_Fogles_Dog wrote: »

Thanks for the reply. Anecdotal evidence suggests that you can buck the system, there are certainly ways to buy and then after 6 months of local work move in as you now qualify as a local. However, none of that really answers my original question which is how is it enforced and what are the consequences?

But that isn't bucking the system. If the condition only relates to occupancy and not ownership then it is entirely lawful for a non-resident to buy the property, live elsewhere temporarily for any stated length of time, and then move in. They may even be entitled to move straight in if the conditions permit.

The enforcement will depend on who has imposed the condition and why. If it is the local council as part of their planning function then the occupancy would be enforced using planning legislation. That would start with a polite letter/visit enquiring about your circumstances, all the way through to fines and court orders requiring you not to live in the property. If you failed to comply with a court order then your next 'home' would have bars on the windows.

Financially you might be in the position of owning a house that you are unable to live in, yet have to pay all the bills on. You would also need to consider how easy it would be to sell on with the occupancy condition attached. Presumably you are interested because properties like this often sell for less money that others, but you need to bear in mind that part of the reason for the price reduction is the limited market you have available for a future sale.