Section 106 Unilateral Undertaking

Section 106 Unilateral Undertaking –
What is it and what does it mean?

The Lake District National Park, in common with many popular tourist areas in England and Wales, suffers from property being too expensive for local people to rent or buy. As a result, local communities are starting to fall apart because of the lack of permanent local residents.

In line with its stated remit as a Charity, the Lakeland Housing Trust has developed a simple way for any homeowner in the Lake District National Park to prevent their home from ever becoming another second home, holiday let or Airbnb rental.

By undertaking the simple steps below, it is possible to ensure your property is always lived in by a permanent resident, as a principal residence or let to a tenant for a minimum period of 12 months.

Once registered, the residency of the property will be policed by the Lake District National Park who have worked closely with the Lakeland Housing Trust to ensure the policing process is as simple and robust as possible.

How to add a Section 106 Unilateral Undertaking on your property

By following these simple steps, it is easy for the owner of any property within the Lake District National Park to protect their property from ever becoming a second home, a holiday let or an Airbnb rental in perpetuity:

Email [email protected] to obtain a free template for the Section 106 Unilateral Undertaking together with some simple instructions
Talk to your solicitor and ask them about the pros and cons of placing this Section 106 Unilateral Undertaking on your property (Temple Heelis did the work for the Lakeland Housing Trust)
Your solicitor will ask you to sign a simple acknowledgement letter to show you have understood the implications of the process.
Your solicitor will complete the template and register it as a “restriction” with the Land Registry against the title for your property.
Your solicitor will contact the Lake District National Park Authority and ask them to place a Land Charge against your property. The Lake District National Park Authority, who police the obligation, will request that your local authority (the registration authority) add the property to their register of Land Charges.
Sit back and relax in the knowledge your property will be used for local occupancy in perpetuity.

The costs of the process will include:

Your solicitor’s fees
A fee for registering the restriction on your property with the Land Registry (£20)
A fee for the LDNPA to police the restriction and arrange for your Local Authority to place a Land Charge on your property (£400)

Q&A with a Trustee about Section 106 Unilateral Agreements

Why have you chosen to put a Section 106 Unilateral Agreement on your property?
Essentially it is because I never wish the property to be used in the future as a second home, a holiday home or for Airbnb – I want it to be lived in always as a permanent residence to help maintain our local community.

Why does a property not being able to become a second home or holiday let mean so much to you?
I have been a Trustee of the Lakeland Housing Trust for the last three years. My family’s history in the Lakes goes back almost 400 years and I love the Lake District and its local communities. As a result of holiday homes, we are losing our infrastructure rapidly including local facilities like shops, schools, doctors’ surgeries which are closing. I want my property to stay as a permanent residence for local people to help keep our communities viable and thriving.

What would you like to see going forward?
It would be great to see more people placing the Agreement on their properties, if they can. It is easy to put in place and it will ensure that more homes remain available for those who want to live and work in our local communities. Once attached to a property, the Agreement is there in perpetuity and cannot be removed.

What was the process like?
It was very straightforward. The relevant documents are available from H&H Land & Estates or via the Lakeland Housing Trust website. I gave them to my solicitor and they did the rest!

What were the costs?
The basic cost was around £450 including LDNPA and Land Registry fees. Solicitor fees were separate and these will vary dependant on which firm is used to complete the work.

What are the timescales?
The process is relatively quick. For more information on specific timelines, it is best to speak with a solicitor as there can be variations dependent on several factors.

Would you recommend putting a Section 106 Unilateral Agreement on a property to others?
Absolutely, if you are able to as a property owner – it is really worthwhile to maintain properties that have permanent residents in for our communities and local area; thereby reducing the future number of holiday cottages, second homes and Airbnb premises.

For more information please email:

[email protected]