Best Buy Mortgages Glossary - Agricultural Restriction
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Agricultural Restriction
Also known as an Agricultural Planning Restriction. This a
freehold covenant that restricts the occupancy of a property to
those engaged in agriculture. In order to comply with this
restriction the owner should fulfil one of the following
criteria:
- be employed in horticulture or agriculture in a 30 mile
radius of the property.
- be retired from horticulture or agriculture within a 30
mile radius of the property.
- be using the land at the property intensively to provide
your main source of income.
Many properties built on farmland in the immediate
aftermath of the Second World War were given planning
permission subject to an agricultural restriction. This can
mean problems when the occupants come to sell the property.
The farming population has shrunk dramatically in the last
five decades and it can be difficult to find buyers. However,
in some cases the covenanted restriction may be lifted or
modified by application to the courts or the local council's
planning authorities.
An agricultural restriction may run in tandem with a Section 106
obligation. Under section 106 of the Town and Country Planning
Act 1990, as amended by the Planning and Compensation Act
1991, any person interested in land in the area of a local
planning authority may, by agreement or unilaterally, enter
into an obligation (commonly known as a section 106 planning
obligation):
- restricting the development or use of land in any
specified way.
- requiring specified operations or activities to be
carried out on the land.
- requiring the land to be used in any specific way.
Agricultural restrictions may have inheritance tax
planning implications given the agricultural property
relief's that are available under the IHT regime.
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