Section 106 query

MatthewLynn11

Good afternoon all,

This is my first post so thank you very much for taking the time to read it. It is rather confusing.

My wife and I have had major problems with selling our old property under the Section 106 agreement. If you are unfamiliar with this, you buy the property at a set Discount Market Value (DMV), for example 80% of the full valuation and when you come to sell the property you have to sell at 80% of the new valuation at that time.

When we first bought our property in July 2014 we were under the impression we were buying at 80% Discount Market Value. This was stated on the initial reservation agreement that we signed, as well as other documentation we had to sign during the purchase. However, when we came to sell we realised that we have conflicting documentation written by the solicitors stating we bought at 80% DMV and 70% DMV (I know that this is something we should have picked up at the beginning but the S106 was so confusing we just didn’t realise at the time). We also realised that the transfer deed was signed at 70% DMV. This basically means we had to sell our property at 70%DMV not the 80% we originally thought we were purchasing at the time. At the same time of purchase another house (exactly the same as ours) on the street was bought for the exact same amount as we paid for ours. They however were able to sell their property at 80% where as we have had to sell at 70%. We have sent letters of complaints to Persimmon Homes and our Conveyancing Solicitor requesting every bit of documentation and answers as to why both properties were purchased at the same DMV but were allowed to be sold at different DMV. Unfortunately we are not getting any reasonable explanation off both parties. I have requested the CML form on numerous occasions and neither are willing to give us the document or are stating they do not have it?? We now feel we have lost out on 10% of the sale price which is a total of £1600.00.

We are looking to take legal action against said building firm and the local conveyancing solicitors we used. I was just wondering if anyone has had any problems like this before or could advise how to take this further. I have made enquiries to a couple of local solicitors however we cannot afford the fees at the minute.

Any help at all would be greatly appreciated.

Thanks!

Sachs

So the section 106 agreement says the property should be 70% of open market value but you believe that Persimmon sold it to you for 80% of market value?

It's a pretty niche area but I would suggest first port of call is the Affordable Housing/Housing Delivery/Housing enabling officer at the Council.

Councils !!!!ing hate Persimmon so if they have any ability to punish Persimmon for this I bet they would love to.

MatthewLynn11

Thanks for the quick response.

I will contact the relevant person in the council and see what they have to say.

The section 106 Agreement states that houses can be sold for no more than 80% DMV so it could be sold for 70 or 80%.

My issue with them is the fact that my old property and No. 8 on the same street we’re bought for the exact same price so surely they must have been the same DMV at the time. Then when we have come to sell they have said we bought ours at 70% and No. 8 bought there’s at 80%. I have been trying to request a CML form which should show what the original valuation was and any discounts etc.. however neither persimmon or the solicitors are willing to give me it!!!

Thanks again for the response.