Buying Property: REMAINS AFFORDABLE IN PERPETUITY

aardeb

I am in the process of purchasing a house built in 2002. I got back the Local Authority Search. There is an entry in the search which says: 

Local Land Charge Register Entries:
THE RESTRICTIVE COVENANTS IN THE SECTION 106 (LOW COST HOME OWNERSHIP ) REMAINS AFFORDABLE IN PERPETUITY AND WOULD HAVE BEEN PART OF THE REQUIREMENTS OF SECURING PLANNING PERMISSION . THE COUNCIL WILL NOT BE AGREEABLE TO THE REMOVAL OF THE UNILATERALNOTICE IN RELATION TO THIS MATTER

I am a bit concerned about what the above means particularly the perpetuity statement. I have asked my solicitor and she said I should check the planning application. I managed to download the application but there was no reference to the above.

Note the house has already been sold twice since being built, increasing in price on each sale. Would anyone have any idea what the above means and if there would be any financial implications on buying/selling the house ? 

Thanks to anyone who can help !! 

daveyjp

It means the property will always have to be sold at below market value.  Generally a percentage.  You need a copy of the s106 to know the figure, not the planning permission.

You are benefitting from this agreement now as the price you are paying will be lower than market value.  When you sell you will get less than market value.

user1977

You will need to check your mortgage lender is aware of this and happy. Or rather, your solicitor should, though it sounds like she can't be bothered doing anything...