Selling house with section 106

LBJ23

Hi MSE,

I have been trying to sell my house for around 12 months and have been struggling because of this 106 agreement being imposed by the local council. I have had 3-4 serious enquiries about purchasing the property with 2 almost going to the end, however they pull out last minute due to the 106 agreement. It is proving to be very stressful and emotionally draining. 

Any tips and advice on how to shake this agreement would be much appreciated!

Thanks!

davidmcn

Would help if you told us what the s106 actually says!

AdrianC

I presume this is a "local tie"? When was it imposed, and does it have an expiry?

K_S

LBJ23 said:

Hi MSE,

I have been trying to sell my house for around 12 months and have been struggling because of this 106 agreement being imposed by the local council. I have had 3-4 serious enquiries about purchasing the property with 2 almost going to the end, however they pull out last minute due to the 106 agreement. It is proving to be very stressful and emotionally draining. 

Any tips and advice on how to shake this agreement would be much appreciated!

Thanks!

@lbj23 At what stage are the transactions falling through for the buyer? Before mortgage offer or during conveyancing?

Section 106s are not unusual and there are plenty of lenders who will consider as long as the clauses in it are fairly standard and the mortgage is up to certain LTV limits (differs across lenders). I rarely come across any that are completely un-mortgageable.

I appreciate that you don't have a lot of control over the buyer's mortgage process but it would be good to supply all the available details upfront to the buyer so that they (or their broker) can make an early assessment as to whether they can buy the property or not.

Of course, all this is assuming that getting a mortgage is the primary roadblock.

Section62

AdrianC said:

I presume this is a "local tie"?

I'm going with some form of parking restriction.

LBJ23

AdrianC said:

I presume this is a "local tie"? When was it imposed, and does it have an expiry?

Was in the paper work when I purchased the house, seems there is no expiry on it either

LBJ23

Section62 said:

AdrianC said:

I presume this is a "local tie"?

I'm going with some form of parking restriction.

Nope no parking restriction, have two spots to park on the drive and it’s on an estate with no parking restrictions imposed

daveyjp

'Local house for local people' clause?

LBJ23

K_S said:

LBJ23 said:

Hi MSE,

I have been trying to sell my house for around 12 months and have been struggling because of this 106 agreement being imposed by the local council. I have had 3-4 serious enquiries about purchasing the property with 2 almost going to the end, however they pull out last minute due to the 106 agreement. It is proving to be very stressful and emotionally draining. 

Any tips and advice on how to shake this agreement would be much appreciated!

Thanks!

@lbj23 At what stage are the transactions falling through for the buyer? Before mortgage offer or during conveyancing?

Section 106s are not unusual and there are plenty of lenders who will consider as long as the clauses in it are fairly standard and the mortgage is up to certain LTV limits (differs across lenders). I rarely come across any that are completely un-mortgageable.

I appreciate that you don't have a lot of control over the buyer's mortgage process but it would be good to supply all the available details upfront to the buyer so that they (or their broker) can make an early assessment as to whether they can buy the property or not.

Of course, all this is assuming that getting a mortgage is the primary roadblock.

Sometimes buyers get a mortgage and back out last minute. 2 have done that previously after spiralling to family and having further discussions etc. One buyer was in the process of getting a mortgage through a provider who previously said no to this type of property and was deterred from how long the process took

bpj

OP, in case it's not clear, a section 106 agreement could be any planning obligation. That's why people are asking for the details before giving any advice. Do you have the text of the agreement?

[Deleted User]

They are hard to buy and even harder to sell.  Only options you have are to be completely upfront prior to accepting an offer and wait for another buyer, reduce the price and make the restriction less of a problem