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Tied up by an Occupancy Condition

28/06/2007

tied upA significant number of houses in rural areas are burdened by agricultural occupancy conditions which restrict the occupation of the dwelling to persons who are or were last working in agriculture or forestry in the locality.  These restrictions reduce the market value of the property by as much as 30% in some cases.

Due to re-structuring of agricultural holdings and reduced labour requirements, the long term need for dwellings with occupancy conditions can often be challenged and owners may feel that is appropriate for the condition to be removed.  Fisher German advises that this is often a long and lengthy process and a good case needs to be put forward to ensure success.  Depending on the local planning authority, applicants may be required to show at least twelve months marketing of the property at a realistic figure which reflects the condition.  The intention of the marketing exercise is to demonstrate that there is no requirement for the agricultural dwelling in the locality.

Government Guidance set out in Annex A of PPS7 advises that dwellings with the condition should not be left vacant.  It may be possible to arrange short term lettings in order to make use of the property whist marketing is undertaken.

A number of occupancy conditions have been removed by means of a Certificate of Lawful Existing Use or Development (CLEUD).  These Certificates are granted upon provision of evidence to the Local Planning Authority that the condition has not been complied with for a period in excess of ten consecutive years, once granted a Certificate effectively permanently removes a condition.

Removing a condition can release equity for borrowing or simply allow the letting or sale of the property at open market rent or value.  For further information please contact Hannah Pike, Stafford Office 01785 220044

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