We’ve all looked at properties that are for sale online, become excited, and then reached the small print at the end and found that a Section 106 restriction means that we are not eligible to purchase it.
Whilst this can be frustrating for the casual browser, it can make all the difference for those who live in areas where prices are high and incomes are often relatively low, which includes much of our heartland of Cumbria. The presence of Section 106 restrictions means that some properties can be reserved for local people, which means that vital jobs can continue to be filled, preserving communities and family connections. Furness understands the value of Section 106 restrictions and believes that its long heritage of helping people to buy their own homes means that it has a duty and the skills to help.
A recent enquiry came from a broker working with Stuart and Liz who are first time buyers from North Cumbria. Stuart (47) has been a postman for over 10 years and earns £23k. Nicola (46) is a trainer working in the care industry and earns £20k, a position she has held for 7 years. Nicola is originally from the Midlands but relocated to Cumbria when she met Stuart 12 years ago. They had a modest deposit and some outstanding credit, meaning that affordability was tight. The property they wanted to buy was also a shared ownership property.
Our underwriting team worked with the broker to understand the detail of the Section 106, which required them to have lived in Cumbria for 10 years and in the town of the property’s location for at least 5 years. Furness was pleased to accept their application, and two local people are now able to enjoy the security of having their own home.
If you’d like to talk to us about any enquiries which you may have, give our Broker team a call on 0800 988 1561 or contact your BDM.
All our case studies are based on real cases but the names have been changed and stock images have been used to protect confidentiality.