Section 106 Agreement Discounted Property: What You Need to Know
If you`re on the hunt for discounted property in the UK, you may have come across the term `section 106 agreement`. So, what exactly is a section 106 agreement and how can it help you find affordable property?
Section 106 agreements are legal agreements between developers and the local planning authority that are required to be in place before planning permission is granted for certain types of development. These agreements are used to mitigate any adverse impacts that the development may have on the local area. This can include the provision of affordable housing, improvements to local infrastructure, and contributions to community facilities.
One way that section 106 agreements can make property more affordable is through the provision of discounted homes. Developers may be required to provide a certain percentage of affordable housing as part of the agreement, which can include homes that are sold at a discounted price. These homes are usually reserved for people who meet certain criteria, such as being a first-time buyer or having a certain level of income.
The discount offered on these homes varies, but it can be significant. In some cases, homes can be sold at a discount of up to 50% of their market value. This can make property ownership possible for people who may not otherwise be able to afford it.
It`s worth noting, however, that section 106 agreement discounted properties often come with some restrictions. For example, the home may have to be occupied by the owner or rented out to someone who meets certain criteria for a set period of time. This is to ensure that the property remains affordable in the long term.
If you`re interested in purchasing a section 106 agreement discounted property, it`s important to do your research. These homes are often in high demand, so it`s important to act quickly if you find a property that meets your needs. You`ll also want to ensure that you meet the requirements for purchasing the property and that you understand any restrictions that come with it.
In conclusion, section 106 agreement discounted property can be a great way to get on the property ladder if you`re struggling to afford a home. As a professional, it`s important to note that while the properties themselves may be discounted, keyword research is still important in order for potential buyers to find these homes. By understanding what section 106 agreements are and how they can make property more affordable, you can make an informed decision about whether this route to homeownership is right for you.