Section 157 Mortgages
How to Buy or Remortgage a Restricted Property – Bright Money
Section 157 Mortgages: How to Get Approved for Restricted Properties
Buying or remortgaging a property with a Section 157 restriction can feel confusing — most lenders won’t touch them, councils have strict rules, and it’s easy to hit a wall before you’ve even started.
At Bright Money, we specialise in helping people buy, sell, or remortgage homes affected by local occupancy clauses — including Section 157 properties in places like Devon, Cornwall, Norfolk and the Cotswolds.
We’ll explain what the restriction means, how to get council consent, and which lenders are open to these mortgages in 2025.
🏡 What Is a Section 157 Restriction?
A Section 157 covenant is a legal clause in a property’s title that limits who can buy or live in the home.
It comes from Section 157 of the Housing Act 1985, and it’s often used by councils in designated rural or National Park areas to keep housing affordable for local people.
In simple terms:
A Section 157 property can usually only be sold to someone who has lived or worked in the local area for a set number of years — often three.
Councils use this to stop second homes and keep local families in the community.
🧭 Where You’ll Find Section 157 Homes
These restrictions are common in scenic or high-demand areas, including:
Cornwall – especially in coastal and National Park zones
Devon – such as South Hams, North Devon, and West Devon councils
The Cotswolds – ex-council homes and village developments
Norfolk and North Norfolk – homes sold under Right to Buy schemes
Peak District & Lake District National Parks – rural affordable housing schemes
Each council sets its own eligibility rules. For example:
South Hams (Devon)
Residence / Work Requirement: 3 years local connection
Things to be aware of: Must apply for council consent before purchase
Cornwall Council
Residence / Work Requirement: 3 years residence or work
Things to be aware of: Applies to many ex-council coastal homes
Cotswold District
Residence / Work Requirement: 3 years residence or work
Things to be aware of: Consent letter required for lender
North Norfolk
Residence / Work Requirement: 3 years residence or employment
Things to be aware of: Must prove connection before exchange of contracts
⚖️ Buying a Section 157 Property – Step-by-Step
If you’re buying one of these homes, you’ll need to follow a few key steps:
Check the title deeds
Your solicitor or conveyancer can confirm if a Section 157 restriction is registered on the property.
Confirm local eligibility
Contact the local council to check what counts as a “local connection” (usually proof of address, employment, or family ties).
Apply for written council consent
Councils normally issue a consent letter if you meet their criteria — this is essential for most lenders.
Find a mortgage lender that accepts Section 157 properties
Many mainstream lenders won’t lend on restricted titles.
Specialist lenders (like LiveMore, Bath Building Society, and a few regional banks) often do — and that’s where we can help.
Get mortgage advice early
With Bright Money, we can assess your eligibility, contact suitable lenders, and guide your solicitor through the process to avoid delays.
Remortgaging a Section 157 Property
Already own a restricted property? You might find your current lender won’t allow a remortgage — even if you’ve been there for years.
Bright Money works with lenders who understand Section 157 restrictions, so we can often help you:
Remortgage for a better rate
Borrow additional funds for home improvements
Release equity later in life (including retirement interest-only options)
We handle the tricky parts — lender criteria, property valuation, and council consent — to make sure your case goes smoothly.
Can You Get Around a Section 157 Restriction?
Not really — and you shouldn’t try to. It’s a binding legal covenant that “runs with the land.”
However, some councils allow exceptions or discretionary waivers if:
No eligible local buyer can be found after a set marketing period (often 3–6 months)
The property has been empty for an extended time
You meet partial eligibility (for example, work locally but recently moved)
We can help you present your case properly to the council and lender so you have the best chance of success.
🧾 Documents You’ll Usually Need
When applying for council consent or a mortgage, you’ll likely need to show:
* Proof of address history (e.g. utility bills, tenancy agreement, council tax)
* Employment contract or payslips showing local work
* Evidence of time spent in the area (3+ years typical)
* Copy of the title register or Section 157 covenant wording
* Council consent letter (once issued)
Bright Money can help you prepare everything and liaise with your solicitor and lender to keep things on track.
FAQ
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Can I rent out a Section 157 property?
Only to tenants who also meet the same local-connection rules. You must usually get council permission first.
Can I remove a Section 157 covenant?
Very rarely. It’s part of the property title. You can apply to the Land Registry to discharge it, but councils almost always object.
What happens if I buy without meeting the criteria?
The sale can be voided and the council may enforce the restriction. Always check eligibility and get written consent before exchange.
Which lenders accept Section 157 properties?
It changes often. Bright Money has access to lenders such as LiveMore, Bath Building Society, and others that review each case individually.
Do these restrictions affect property value?
Yes, slightly — usually 10–20% below open-market value due to the smaller pool of eligible buyers.
Can I get a Help to Buy or shared ownership mortgage on one?
Sometimes, but it depends on the local authority. We can advise case-by-case.
Ready to Enquire about a Section 157 Property Mortgage?
We’re not just a mortgage broker — we’re specialists in niche and restricted property lending.
With Bright Money, you’ll get:
* Direct access to lenders who accept Section 157 titles
* Help gathering and presenting local-eligibility evidence
* Guidance through the council consent process
* Support right through to completion
Call us: 01844 390910
Email us: info@bmimoney.co.uk
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