What is an Agricultural Tie?
If you are searching for a new place to live, the chances are that you have shortlisted a few houses to see – but have you come up against a house that has “agricultural ties” associated with it?
If you are reading this page, the chances are you have and want to know more about the term.
What is an Agricultural Tied Property?
If you have house hunted in the countryside then you might have come across this term. An agricultural tie is a planning condition or requirement that has been placed by the local council, for planning permission on a house that has been built in the open countryside where development would not normally be permitted.
An agricultural tie looks to put in place some restrictions on who can buy and occupy the house, and is usually based on the job the owner has, or sometimes, last had. For example dairy farming, fruit growing, livestock farming and forestry working are just some of the jobs that fall under the criteria to own a house with an agricultural tie.
It is important to note that properties subject to an agricultural tie are generally worth less than a comparable property without the tie due to the occupancy restriction.
What is a Section 106 Agricultural Tie?
Essentially, it is one and the same. An Agricultural Tie can go by numerous titles such as Agricultural Occupancy Conditions, AOC’s, Ag Tags, Agri Ties and Section 106 agricultural ties, which refers to the section of the 1990 Town & Country Planning Act in which agricultural ties are laid out.
What is an AOC Property?
As mentioned above this is another name for an agriculturally tied property. AOC is an abbreviation of Agricultural Occupancy Conditions. It refers to the conditions of occupancy, which states that the owner/occupier needs to be in, or last in, an agricultural job that falls under the criteria.
Sometimes it is the occupier / owner who has to comply with the tie but on other occasions a dependent, or a widower that is connected to agricultural work may satisfy the requirements dependent upon what conditions are laid out by the local authority.
Can an Agricultural Tie be Removed?
You can remove an agricultural tie but you need to meet certain criteria and be mindful that the change cannot be reversed.
There are a couple of ways to remove a tie. The first is the most popular and involves the property being put on the market for 12 months (at a price that reflects the Ag Tag condition). In addition to the marketing a local needs assessment must also be undertaken, as well as a review of the affordable housing in the local area.
If no sale is made during the 12 month period, and local needs and affordable housing comes back with no feedback, then an application to the Local Planning Authority can be made for removal of the tie. The Local Authority will then decide if the tie can be removed.
Can I Get an Agricultural Tie Mortgage?
At esbs we can help you obtain an Agricultural Tied mortgage. The maximum loan is our usual £750,000 (unless stated within the individual product details) but the maximum loan to value is restricted to 90%.
We would always need to see the wording of the tie as this can differ from one property to another and not all tie wording is acceptable to us. We would also need confirmation from the Local Authority that your circumstances mean that you are eligible to occupy the property.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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