Last Updated: 21 November 2023
Once you have found an affordable home for sale, you can then apply to us to see if you qualify to purchase it. The application process is based on theSection 106 Agreement attached to the specific affordable property. ThisAgreement isa legal document which places specific conditions on the property or land. It ensures that the property remains an affordable property each time it is sold and provides the criteria for potential purchasers.Although every Section 106 is unique to each property, the three mainclauses are;
Local connection
This clauseensures that only people with an established connection to the specified localitycan buy the property. The locality is defined in the Section 106 whichnormally gives a list of parishes. Ask the owner for these details, or us if the owner is unsure.
There are numerousvariations in local connection criteria between section 106 agreements. Generally mostwill state that you must have lived for at leastthree years immediately prior to your application or,have a permanent job (over 16 hours per week) or firm job offer in one of the parishes listed in the section 106 for the specific property (the locality). Contact us for more information on local connection criteria.
Housing need
Affordable housing is for those who are in housing need and unable to afford to buy a home on the open market. We work out whether you qualifyby looking at your household's; circ*mstances,income, savings, equity in any property or landyou own, wages, potential mortgage amongst other things. We then compare this to a table of property values from independent property surveyors, to calculate whether you qualify.
Use of the property
The property must be your only or principal home and cannot beused as a 'buy to let', second home or holiday let.
Variations
Both we and each property owner must abide by the terms contained withinthe Section 106 Agreement for the lifetime of the property. We assess applications case by case and refer to theSection 106 Agreement specific to the property of interest. The Section 106 Agreementhas evolved over time, as such there aresignificant variations between properties.
