Section 106 Agreement
Section 106 Advice and Negotiation.
What is a Section 106 Agreement?
A Section 106 Agreement is a legal agreement between a Property Developer and the Local Planning Authority. Section 106 agreements are linked to planning applications and determine the level planning obligations that a property developer will be subjected to, including but not limited to affordable housing.
Roscoe Group - Section 106 Agency
The Roscoe Group Chartered Surveyors is an independent firm based in London. A regulated member of the Royal Institute of Chartered Surveyors and Registered Valuer providing expert Development Consultancy and Agency services in London, Home Counties and the South East.
A Section 106 Agreement is a legal agreement between a Property Developer and a Local Planning Authority.
A person/ developer bound by a S106 Agreement can seek to have the obligations varied or discharged within 5 years.
Yes, but it will be resisted by the Local Planning Authority.
Dependent on the individual/developers financial position and would be explored on a scheme by scheme basis.
Section 106 Negotiation Process
STAGE 1
Financial Viability Assessment
The Applicant instructs a Viability expert to prepare a Financial Viability Assessment which will be submitted with a planning application to the Local Planning Authority.
STAGE 2
Planning Application
Once the Planning Application has been validated by the council the Local Authority will appoint an independent assessor to review the submitted Financial Viability Assessment. The assessor will produce a response to the Financial Viability Assessment to either agree or disagree with the assumptions adopted in the submitted assessment.
STAGE 3
Planning obligations
The Applicants representative will review the response and either agree a position which ensures the proposed level of planning obligations don’t hinder the deliverability of the scheme. Or the Applicants representative will enter into a period of negotiation during the determination period with the Council’s appointed assessor to reach an agreement on the adopted assumptions to reach an agreed viability position. The Applicant should allow 4 weeks for this process.
STAGE 4
Outlining Agreed Proposition
Once the assumptions are agreed a financial viability assessment addendum will be produced outlining the agreed position.
STAGE 5
Planning consent
The application will then be put to a committee where members will either approve or refuse the planning consent. If the proposed scheme receives a resolution to grant planning consent subject to signing of a S106 agreement then a solicitor will be appointed to draft the Section 106 Agreement.
STAGE 6
Section 106 Agreement
Solicitors will draft various iterations of the S106 Agreement with the various professional inputs until it is in a final format that the Developer and Local Planning Authority are satisfied with. Only once the S106 Agreement is signed can planning conditions be discharged and the consented scheme can be implemented.
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