Section 106 Planning Mortgages

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Section 106 (S106) of the Town and Country Planning Act 1990 allows a local planning authority (LPA) to enter into a legally-binding agreement or planning obligation with a landowner in association with the granting of planning permission. The obligation is termed a Section 106 Agreement. These agreements are a way of delivering or addressing matters that are necessary to make a development acceptable in planning terms. They are increasingly used to support the provision of services and infrastructure, such as highways, recreational facilities, education, health and affordable housing.

Section 106 Agreements are:

  • Often known as Planning Obligations.
  • Legally binding Agreements between developers/landowners and the Local Planning Authority (Or Council)
  • May also occasionally involve other parties.
  • Made using powers contained in Section 106 of the Town and Country Planning Act 1990 (as amended)
  • Linked to the grant of Planning Permission for a development.
  • Binding on the land to which the Permission relates and whoever owns it, so they pass from owner to owner if the land is sold.

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