I need to have a little rant on here and see if anyone else knows anything about trying to buy a house with a section 106 restriction. Basically, for those who aren't aware a house with a 106 restriction means it is kept as an affordable home so can only be sold at a 60% of its market value and only sold to someone in the local area who don't already own their own property or who has a specific need. Me and my other half have been looking to buy our first home now for 18 months and we haven't been able to secure anywhere, our search area due to family commitments and work is very limited in a rural area. We decided to put an offer in on a house with this 106 restriction and is able to meet all the criteria required to pass the councils approval.
We then learned that 2 other people had offered as well (it can not be sold for more than 60% so we had offered the max its allowed to be sold for, i presume the others did too). We then found out these other 2 offers were from people who had considerable amounts of money, one had a whole farm and 2 houses the other a successful business and several properties. I was so angered to learn the offer from the farmer had been accepted. So much for it being an affordable needs house if you are going to give it to a farmer who has a farm house and is currently building another big house! The estate agents agreed this was unfair as we were the only ones with an actual need for a house.
My partner has spoke to the estate agents today though and found out the farmer couldn't pass the affordable needs (shock!) but the woman is accepting another offer which has come in since the other 3 offers went in and was a random offer out the blue (again they couldn't have offered higher than us because of the restriction). Why on earth have we been completely bypassed and our offer ignored! We offered 2 weeks ago this new offer has been in the last few days. Its so frustrating!!