Mortgages for former council properties
Section 157 Mortgages
What is a
Section 157 Property?
A Section 157 property is a home in a protected rural or designated area, subject to legal restrictions designed to preserve housing for local residents. These properties ensure that affordable housing remains accessible to those living or working in the area.
While these properties offer great opportunities, they also come with challenges—especially when securing a mortgage.
Can You Get a Mortgage for a Section 157 Property?
Yes, but it’s more complex than a standard mortgage. Not all lenders are willing to offer loans for Section 157 properties due to the restrictions on who can buy them. Additionally, you’ll need to meet both the lender’s and the local authority’s criteria.
Challenges with
Section 157
Mortgages
Consider these four important challenges with Section 157 Mortgages
Limited Lender Options
Only a handful of lenders work with Section 157 properties.
Eligibility Criteria
Buyers must meet local authority requirements, such as living or working in the area for a specific number of years.s.
Cascading Systems
In some cases, if no local buyer is found within a set time frame, restrictions may be relaxed to allow more buyers—this can affect mortgage availability.
Non-mortgage Purchases
If you can’t meet the criteria or find a lender, you might need to consider cash purchase options.
How we can help
At BMI Money, we specialise in helping clients secure mortgages for properties with
restrictions like Section 157.
We can:
1
Identify Lenders
Find lenders who understand Section 157 restrictions and are willing to work with buyers like you.
2
Clarify Criteria
Ensure you meet both local authority and lender requirements.
3
Navigate Complexities
Handle the paperwork and liaise with all parties to make your purchase as smooth as possible.
Are you considering purchasing a Section 157 property? Let BMI Money guide you through the complexities and help you secure the right mortgage for your dream home.
Ready to discuss your options?
Contact BMI Money today to discuss the best path forward for your Section 157 Mortgage.
Section 157 FAQs
What is a Section 157 restriction?
A Section 157 restriction limits the sale of a property to buyers meeting specific local criteria, such as living or working in the area.
How do I check if a property has Section 157 restrictions?
You can find this information in the property’s title deeds or by contacting the local authority.
Are mortgages harder to secure for Section 157 properties?
Yes, due to the limited number of lenders willing to offer loans for these properties and the
strict eligibility requirements.
What is a cascading system in Section 157?
A cascading system allows restrictions to relax over time, enabling a wider pool of buyers if no local buyer is found within a set period.
Can I buy a Section 157 property without a mortgage?
Yes, cash purchases are an option if a mortgage isn’t available.
Further Resources & Links
- The UK Government provides a searchable tool for all councils in England and Wales:
Click here to find your local council - How it works: Enter a postcode to locate the relevant council and access its website,
which often includes a direct link to its housing department. This covers England and
Wales comprehensively
- Several directories provide lists of councils with links to their websites:
Local Government Association (LGA): Offers a directory of councils in England.
LGA Council Directory - Welsh Local Government Association (WLGA): Covers councils in Wales.
Below are some key councils as examples:
England
1. Dorset Council: Housing Section
2. Cornwall Council: Housing Section
3. Devon County Council: Housing Section
4. Birmingham City Council: Housing Section
5. Greater London Authority (GLA): Housing Section
Wales
1. Cardiff Council: Housing Section
2. Swansea Council: Housing Section
3. Conwy County Borough Council: Housing Section
4. Gwynedd Council: Housing Section
Open Data UK: Provides datasets, including council details, for download.
This can be filtered for housing-specific information.
Open Data UK
