
Over the past few months, I’ve had a noticeable uptick in enquiries about varying section 106 agreements — so it’s worth setting out when a variation is possible, what the process looks like.
Why do people want to vary a s.106
A section 106 agreement is a deed that contains planning obligations that run with the land. The obligations might require a financial contribution, restrict who can occupy a property, or regulate the use of the land. The problem is that agreements drafted ten or twenty years ago often no longer reflect current circumstances — either on the site itself or in relation to the council’s own planning policy.
That is why clients may want to amending an obligation alongside an application to vary the underlying planning permission (often a s.73 application).
Alternatively, clients may want to remove an obsolete requirement — for example, a use that no longer happens at the site, or an occupancy condition tied to a specific category of resident, such as an agricultural worker.
That is why clients may want to amend an obligation alongside an application to vary the underlying planning permission (often a s.73 application).
Alternatively, clients may want to remove an obsolete requirement—for example, a use that no longer occurs at the site, or an occupancy condition tied to a specific category of resident, such as an agricultural worker.
Two recent examples:
A couple of years ago, I worked on a deed of variation to a s.106 agreement that was over twenty years old and plainly obsolete. The obligation restricted occupation of the property to people over 65 — what was then known as the statutory retirement age — because of an apparently held assumption that older people would not need a car, which had led to a planning policy at the time that assumed older people would not need a parking space. Since then, not only has parking policy changed radically, but so has the concept of the statutory retirement age – not to mention the rights of older drivers. As a result, the obligation had become meaningless, and my client, who was selling the property and did not want to be restricted to marketing to a particular demographic, wanted to negotiate its discharge.
More recently, I dealt with a similar matter where the s.106 agreement had simply become unenforceable, a fact acknowledged by the local planning authority. Not only had the council’s own policy moved on considerably, but national planning policy had also changed significantly in the years since the agreement was first drawn up.
Both matters were resolved successfully, with the obsolete obligations discharged.
How much does it cost to vary/discharge a s.106 agreement?
The Council’s fees for processing a s.106 variation vary considerably. Some councils don’t make a charge at all, while others may charge thousands of pounds. While a breakdown of the costs should always be provided, and if not, a breakdown should be requested, especially if they appear excessive, the Council will tend to stick to their guns and not reduce their costs.
FGLP’s fees will depend on a number of factors, including the complexity and, sometimes, the urgency of the matter. Please contact me as soon as possible, especially if you are working towards a specific deadline.
If you are dealing with a property burdened by a s.106 agreement that doesn’t reflect current reality, it’s worth getting it reviewed before it causes a problem at sale or refinance. An old agreement sitting on the title isn’t necessarily one you have to live with. If the obligation is obsolete, unenforceable, or no longer serves a planning purpose, there may well be a route to deal with it — either by agreement with the council, or by negotiation under the Town and Country Planning Act 1990. Different statutory routes apply depending on the age of the agreement.
As town and country planning solicitors, Fortune Green Legal Practice advises clients on all aspects of town and country planning law.
Contact us here for more information.
Photo by Lisa from Pexels from Pexels: https://www.pexels.com/photo/vintage-stone-building-in-village-19958153/
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