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Section 106 Negotiations

Section 106 Negotiations

What We Do

Through our expertise in the construction industry Optimis Consulting has considerable knowledge of the financial considerations of development. This knowledge is particularly helpful when considering the viability of planning permission, but also in negotiating with Council’s on trying to reduce the significant financial burden of section 106 agreements (Planning Obligations) and the Community Infrastructure Levy.

We provide an impressive service to many house builders and landowners and broadly are able to reduce around one third of the section 106 contributions that are sought by Council’s. On one site alone this was reduced by nearly £400,000.

Henlow, Bedfordshire

Optimis was asked to negotiate a reduced section 106 requirement in order to allow the landowner to achieve a modest return for their investment. Despite Central Beds having an adopted policy, Optimis was able to make a robust argument and subsequently reduced the requirement from nearly £400k to £250k for a scheme of only 29 dwellings in the attractive village of Henlow.

Shefford, Bedfordshire

Bovis Homes is one of our major clients and we regularly assist the company with section 106 negotiations. Working with the landowner we were able to significantly reduce the imposition of a large financial contribution on a scheme for over 60 dwellings in Shefford. Although the Council sought a contribution of £1.3m, Optimis was able to reduce the contribution by £396,000.

Optimis is looking forward to working on phase two of the project and aim to provide a similar service to the clients and landowners.

Ladysmith Road, Enfield

The London Borough of Enfield is one of the most advanced authorities when seeking section 106 contributions because they sub-contract to industry experts. The client wanted to convert an old office into 6 flats and the Council sought a financial contribution as well as two affordable dwellings. Utilising the industry recognised Three Dragons Assessment, together with detailed argument the client obtained a consent with no affordable units and a significantly reduced contribution by about 60%.

Barnet CIL

The Community Infrastructure Levy was set up to provide greater certainty in the collection of financial contributions from development. Moreover it is considered that the calculation of the CIL value on a scheme is fixed and not negotiable. Not Quite! Optimis has recently reduced a CIL liability on a site in Hendon from £5,000 down to £875, a significant reduction for a levy that is not meant to be questioned.

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