Mortgagee exclusion clause at 1-31 (inclusive), Pontarddulais, Swansea

“Modification of Section 106 Agreement dated 26th February 2019 attached to Planning Permission 2018/1932/FUL Granted 28th February 2019 to Insert a Mortgagee Exclusion Clause…”

“To seek authorisation to modify the Section 106 agreement relating to planning permission 2018/1932/FUL for the development of 31 residential units and associated works.”

“The development was granted full planning permission for 31 residential units on the site known previously as Land at Cambrian Yard, Cambrian Place, Pontarddulais on 28th February 2019.”

“The Section 106 agreement accompanying the planning permission secured 30% affordable housing on the site to be kept as such in perpetuity.”

“The applicant, Codi Homes and Communities Limited, has requested that a MEC is inserted into the S106 agreement for the affordable houses secured through the planning obligation. MECs are clauses that allow a lender who has repossessed a property to operate free of restrictions which are placed upon individual properties through the requirements of the S106 agreement. Essentially, a MEC would be engaged when a borrower defaults on their…”

“The inclusion of a MEC would not change the existing and current use of the property whilst it is in the ownership of the applicant or any other registered social landlord. It is only required in the event that the applicant should ever default on their loan and the lender takes possession or appoints a receiver, which is considered extremely unlikely.”

“Council’s Legal Officer - The Mortgagee Exclusion clause can be agreed in principle (subject to exact wording) provided it applies to the social rented units only.”

“Council’s Housing Officer – I can confirm this is a 100% social rented scheme being delivered by Codi Housing Association therefore we agree to the modification of the Section 106 Agreement dated 26th February 2019 attached to planning permission 2018/1932/FUL granted 28th February 2019 to insert a mortgagee exclusion clause.”

“Resolved that consent be granted for the modification of Section 106 Planning Obligation (dated 26th February 2019) of planning permission 2018/1932 to allow the insertion of a mortgagee exclusion clause.”