Section 106

Elliemiss

Hi

It's been a while, have been busy sadly with family bereavements and all the trauma that goes along with that.

Basically, selling late siblings house, section 106 questions arise and answered all bar one (relatively new house)

Cannot get an answer regarding affordable housing. My sibling never had an affordable house but some apparently on the estate.

Paid council weeks ago, solicitor been chasing and council still making enquiries. House chain about to break, I'm about to break, solicitor saying we have to wait for council to reply. Doesn't look like anything is happening, what on earth can the delay be?

Can anyone here shed any light?

Thanks in advance.

daveyjp

No one will be able to shed any light without any details of what the s106 obligations are.

It is unfortunate that in recent years the s106 agreement has been used to cover all sorts of obligations, what was agreed at the time may have been understood by those who drafted the document, but a few years down the line new eyes look at it and interpretation can become blurred. This is especially so if there are properties with affordable discounts, CIL payments, overage, local buyer clauses, contribution at certain trigger points.

A relative recently bought a flat with restrictions tied to a first time buyer discount. I advised him not to do it as the clauses were potentially very onerous, he ignored me so we'll see in a few years if it turns out to be a headache for a new buyer.

user1977

Cannot get an answer regarding affordable housing

What's the question?

Elliemiss

Hi

As to whether the commitment to provide a certain amount of affordable housing was complied with. Council saying that they're awaiting a reply from registered provider. In the meantime one mortgage offer in the chain has expired and everyone getting frustrated. My sibling never bought an affordable house and from what I understand they're located on other side of estate to his.

daveyjp

It doesn't matter the property isn't allocated as an affordable unit. The s106 applies to the whole development, so the registered provider will probably have to provide evidence they have at some point owned and managed the number of properties in tne agreement,

The waters may be muddy if affordable means social rent and tenants are now exercising right to buy. Some registered providers have also been under financial stress and may have sold them to another RP.

As I said writing the agreement is easy, interpretation and contract management a few years down the line not so.

Elliemiss

@daveyjp

Thanks so much, you've explained more to me than I have heard in several weeks.

So basically there's nothing we can do? This could take forever?

JM68

Sounds similar to when we sold our last flat. There was a s106 relating to a proposed development by our freeholder. Our buyers solicitor iniststed on knowing if it was satisfied. It wasn't as the development had not gone ahead. We pointed out that the s106 was between the freeholder and the council and applicable to us selling our leasehold flat. We got a letter confirming that from the council but had to pay around £100-200 as an 'admin fee'. I am guessing in your case the s106 is between the developer and the council, not each property owner. If so, getting a letter saying that might be the quickest route.

JM68

Typo **not applicable to us…

Elliemiss

@JM68

Thanks, we have already paid nearly £200 for this to be "investigated " at this point I'd be "happy " to pay for a letter. There's literally just nothing though, no replies, no answered calls, just a chain at breaking point.

monkey-fingers

https://forums.moneysavingexpert.com/discussion/comment/81883294#Comment_81883294

Can you get an indemnity policy on this one?

Might be worth asking your conveyancer.

monkey-fingers

I'll answer my own question 🤣

Yes you can
https://gcs-title.co.uk/instant-issue/policies-glance/breach-of-section-52-or-106-agreement/