Permanent residency clause

toreilly

Would you buy a house as a holiday home that has a Permanent Residency Clause? I put an offer on a house only to be told afterwards it contains this clause. I think it would cause problems when I try to sell it on or if I ever need planning permission. The estate agent is trying to convince me that it's no problem. However I'm concerned about it and think they should at least lower the asking price. I'd appreciate any feedback. Thanks.

Ms Doubtfire1

afaik those houses don't allow to actually have this as your permanent residency. I wouldn't.

davindub

toreilly wrote: »

Would you buy a house as a holiday home that has a Permanent Residency Clause? I put an offer on a house only to be told afterwards it contains this clause. I think it would cause problems when I try to sell it on or if I ever need planning permission. The estate agent is trying to convince me that it's no problem. However I'm concerned about it and think they should at least lower the asking price. I'd appreciate any feedback. Thanks.

Assuming it's attached to the planning permission.

These are normally person specific for a number of years rather than generally someone needs to make it their full time residence. There was a variation of this clause where sale was allowed but they must be a local (same conditions as the permission was granted).

You need a local solicitor to advise you on the likely details of the clause, it will come up later when your own solicitor is doing the conveyancing but each council has its own variations of section 47 (PDA) planning permission clauses.

As these are attached to planning permission, the council can enforce the terms , this is rare but has been done where county councils have spotted houses for sale. I don't know what their reaction would be if you actually managed to buy the house. You would be able to void the contract of sale, but you would still need to recover the cash from the vendor.

TSQ

davindub wrote: »

Assuming it's attached to the planning permission.

These are normally person specific for a number of years rather than generally someone needs to make it their full time residence. There was a variation of this clause where sale was allowed but they must be a local (same conditions as the permission was granted).

You need a local solicitor to advise you on the likely details of the clause, it will come up later when your own solicitor is doing the conveyancing but each council has its own variations of section 47 (PDA) planning permission clauses.

As these are attached to planning permission, the council can enforce the terms , this is rare but has been done where county councils have spotted houses for sale. I don't know what their reaction would be if you actually managed to buy the house. You would be able to void the contract of sale, but you would still need to recover the cash from the vendor.

A friend lives in a small estate that is designated as a holiday home development. They have lived there for ten years as have a number of other people. A few of the houses are rented out as permanent homes and a couple are only used at weekends. Council has never taken an interest in the actual occupancy. And I cant see the council spending resources spying on people to see how often you stay in the property. I imagine the price is already discounted for whatever the drawbacks might be. With a holiday home development there could be restrictions on what you can do with the property (building work, even the external painting) and there is likely to be a management company to manage the development (similar to apartment complexes) that you will have to pay in to.

toreilly

Thanks for all your feedback. It's hard to know what to do. The house is currently priced the same as other houses in the area that don't have the clause. I suppose I'm just being cautious because I was told when viewing it, that it didn't have a clause attached, and a few other pork pies. But I suppose that's an issue with the estate agent, not the vendor.

diggerdigger

You need to find out what exactly this "clause" is on.
Is it a condition of planning, is it some sort of covenant on the title, is on the conditions of some management company agreement?
Ask the EA for the exact details and copies of whatever it is in advance of going sale agreed then I would decide whether to ask a solicitor to review before you start incurring fees, etc.
If its a planning permission issue, you should be able to inspect the Planning permission docs at the local council or online.
All depends how much you want the house. If its the only one for you, then you would probably put up with more hassle & risk.

diggerdigger

Also, if you have to get a mortgage to buy the property, your solicitor may have to qualify the title with the lender depending on the nature of the clause.

davindub

TSQ wrote: »

davindub wrote: »

Assuming it's attached to the planning permission.

These are normally person specific for a number of years rather than generally someone needs to make it their full time residence. There was a variation of this clause where sale was allowed but they must be a local (same conditions as the permission was granted).

You need a local solicitor to advise you on the likely details of the clause, it will come up later when your own solicitor is doing the conveyancing but each council has its own variations of section 47 (PDA) planning permission clauses.

As these are attached to planning permission, the council can enforce the terms , this is rare but has been done where county councils have spotted houses for sale. I don't know what their reaction would be if you actually managed to buy the house. You would be able to void the contract of sale, but you would still need to recover the cash from the vendor.

A friend lives in a small estate that is designated as a holiday home development. They have lived there for ten years as have a number of other people. A few of the houses are rented out as permanent homes and a couple are only used at weekends. Council has never taken an interest in the actual occupancy. And I cant see the council spending resources spying on people to see how often you stay in the property. I imagine the price is already discounted for whatever the drawbacks might be. With a holiday home development there could be restrictions on what you can do with the property (building work, even the external painting) and there is likely to be a management company to manage the development (similar to apartment complexes) that you will have to pay in to.

The holiday home designation is not the same as the permanent resident. Permanent resident refers to the person granted pp remaining in occupation in a propery where an non local wouldn't have a hope in hell of getting permission. It's a lot of risk but enforcement is rare thus far. But risky!