Housing Act 1985

• (3) The power conferred by this section to make such payments as are mentioned in subsection (1) is in addition to any other power of the landlord to make such payments.

Rent not to be increased on account of tenant’s improvements.

101

• (1) This section applies where a person (the “improving tenant”) who is or was the secure tenant of a dwelling-house has lawfully made an improvement and has borne the whole or part of its cost; and for the purposes of this section a person shall be treated as having borne any cost which he would have borne but for a renovation grant or common parts grant under Chapter I of Part I of the Housing Grants, Construction and Regeneration Act 1996 (grants for renewal of private sector housing).

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) In determining, at any time whilst the improving tenant or his qualifying successor is a secure tenant of the dwelling-house, whether or to what extent to increase the rent, the landlord shall treat the improvement as justifying only such part of an increase which would otherwise be attributable to the improvement as corresponds to the part of the cost which was not borne by the tenant (and accordingly as not justifying an increase if he bore the whole cost).

• (3) The following are qualifying successors of an improving tenant—

• (a) a person in whom the tenancy was vested, or to whom the tenancy was disposed of, under section 89 (succession to periodic tenancy) or section 90 (devolution of term certain) on the death of the tenant or in the course of the administration of his estate;

• (b) a person to whom the tenancy was assigned by the tenant and who would have been qualified to succeed him if he had died immediately before the assignment,

• (c) a person to whom the tenancy was assigned by the tenant in pursuance of an order made under—

• (i) section 24 of the Matrimonial Causes Act 1973 (property adjustment orders in connection with matrimonial proceedings),

• (ii) section 17(1) of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders after overseas divorce, &c.), . . .

• (iii) paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents) , or

• (iv) Part 2 of Schedule 5, or paragraph 9(2) or (3) of Schedule 7, to the Civil Partnership Act 2004 (property adjustment orders in connection with civil partnership proceedings or after overseas dissolution of civil partnership, etc. )

• (d) a spouse, former spouse, civil partner, former civil partner, cohabitant or former cohabitant of the tenant to whom the tenancy has been transferred by an order made under Schedule 1 to the Matrimonial Homes Act 1983 or Schedule 7 to the Family Law Act 1996.

• (4) This section does not apply to an increase of rent attributable to rates or to council tax.

Variation of terms of tenancy

Variation of terms of secure tenancy.

102

• (1) The terms of a secure tenancy may be varied in the following ways, and not otherwise—

• (a) by agreement between the landlord and the tenant;

• (b) to the extent that the variation relates to rent or to payments in respect of rates , council taxor services, by the landlord or the tenant in accordance with a provision in the lease or agreement creating the tenancy, or in an agreement varying it;

• (c) in accordance with section 103 (notice of variation of periodic tenancy).

• (2) References in this section and section 103 to variation include addition and deletion; and for the purposes of this section the conversion of a monthly tenancy into a weekly tenancy, or a weekly tenancy into a monthly tenancy, is a variation of a term of the tenancy, but a variation of the premises let under a tenancy is not.

• (3) This section and section 103 do not apply to a term of a tenancy which—

• (a) is implied by an enactment, or

• (b) may be varied under section 93 of the Rent Act 1977 (housing association and other tenancies: increase of rent without notice to quit).

• (4) This section and section 103 apply in relation to the terms of a periodic tenancy arising by virtue of section 86 (periodic tenancy arising on termination of a fixed term) as they would have applied to the terms of the first tenancy mentioned in that section had that tenancy been a periodic tenancy.

Notice of variation of periodic tenancy.

103

• (1) The terms of a secure tenancy which is a periodic tenancy may be varied by the landlord by a notice of variation served on the tenant.

• (2) Before serving a notice of variation on the tenant the landlord shall serve on him a preliminary notice—

• (a) informing the tenant of the landlord’s intention to serve a notice of variation,

• (b) specifying the proposed variation and its effect, and

• (c) inviting the tenant to comment on the proposed variation within such time, specified in the notice, as the landlord considers reasonable;

and the landlord shall consider any comments made by the tenant within the specified time.

• (3) Subsection (2) does not apply to a variation of the rent, or of payments in respect of services or facilities provided by the landlord or of payments in respect of rates.

• (4) The notice of variation shall specify—

• (a) the variation effected by it, and

• (b) the date on which it takes effect;

and the period between the date on which it is served and the date on which it takes effect must be at least four weeks or the rental period, whichever is the longer.

• (5) The notice of variation, when served, shall be accompanied by such information as the landlord considers necessary to inform the tenant of the nature and effect of the variation.

• (6) If after the service of a notice of variation the tenant, before the date on which the variation is to take effect, gives a valid notice to quit, the notice of variation shall not take effect unless the tenant, with the written agreement of the landlord, withdraws his notice to quit before that date.

Provision of information and consultation

Provision of information about tenancies.

104

• (1) Every body which lets dwelling-houses under secure tenancies shall from time to time publish information about its secure tenancies, in such form as it considers best suited to explain in simple terms, and so far as it considers it appropriate, the effect of—

• (a) the express terms of its secure tenancies,

• (b) the provisions of this Part . . . , and

• (c) the provisions of sections 11 to 16 of the Landlord and Tenant Act 1985 (landlord’s repairing obligations),

and shall ensure that so far as is reasonably practicable the information so published is kept up to date.

• (2) The landlord under a secure tenancy shall supply the tenant with—

• (a) a copy of the information for secure tenants published by it under subsection (1), and

• (b) a written statement of the terms of the tenancy, so far as they are neither expressed in the lease or written tenancy agreement (if any) nor implied by law;

and the statement required by paragraph (b) shall be supplied when the secure tenancy arises or as soon as practicable afterwards.

• (3) A local authority which is the landlord under a secure tenancy shall supply the tenant, at least once in every relevant year, with a copy of such information relating to the provisions mentioned in subsection (1)(b) and (c) as was last published by it; and in this subsection “ relevant year ” means any period of twelve months beginning with an anniversary of the date of such publication.

Consultation on matters of housing management.

105

• (1) A landlord authority shall maintain such arrangements as it considers appropriate to enable those of its secure tenants or secure contract-holders who are likely to be substantially affected by a matter of housing management to which this section applies—

• (a) to be informed of the authority’s proposals in respect of the matter, and

• (b) to make their views known to the authority within a specified period;

and the authority shall, before making any decision on the matter, consider any representations made to it in accordance with those arrangements.

• (2) For the purposes of this section, a matter is one of housing management if, in the opinion of the landlord authority, it relates to—

• (a) the management, maintenance, improvement or demolition of dwelling-houses let by the authority under secure tenancies or secure contracts, or

• (b) the provision of services or amenities in connection with such dwelling-houses;

but not so far as it relates to the rent payable under a secure tenancy or secure contract or to charges for services or facilities provided by the authority.

• (3) This section applies to matters of housing management which, in the opinion of the landlord authority, represent—

• (a) a new programme of maintenance, improvement or demolition, or

• (b) a change in the practice or policy of the authority,

and are likely substantially to affect either its secure tenants as a whole or a group of them who form a distinct social group or occupy dwelling-houses which constitute a distinct class (whether by reference to the kind of dwelling-house, or the housing estate or other larger area in which they are situated).

• (4) In the case of a landlord authority which is a local housing authority, the reference in subsection (2) to the provision of services or amenities is a reference only to the provision of services or amenities by the authority acting in its capacity as landlord of the dwelling-houses concerned.

• (5) A landlord authority shall publish details of the arrangements which it makes under this section, and a copy of the documents published under this subsection shall—

• (a) be made available at the authority’s principal office for inspection at all reasonable hours, without charge, by members of the public, and

• (b) be given, on payment of a reasonable fee, to any member of the public who asks for one.

• (6) A landlord authority which is a private registered provider of social housing or a registered social landlord shall, instead of complying with paragraph (a) of subsection (5), send a copy of any document published under that subsection—

• (a) to the Relevant Authority, and

• (b) to the council of any district , Welsh county or county borough or London borough in which there are dwelling-houses let by the landlord authority under secure tenancies or secure contracts;

and a council to whom a copy is sent under this subsection shall make it available at its principal office for inspection at all reasonable hours, without charge, by members of the public.

• (7) For the purposes of this section—

• (a) secure tenants include demoted tenants within the meaning of section 143A of the Housing Act 1996;

• (b) secure tenancies include demoted tenancies within the meaning of that section.

• (c) secure contract-holders include prohibited conduct standard contract-holders;

• (d) secure contracts include prohibited conduct standard contracts.

Information about housing allocation.

106

• (1) A landlord authority shall publish a summary of its rules—

• (a) for determining priority as between applicants in the allocation of its housing accommodation, and

• (b) governing cases where secure tenants or secure contract-holders wish to move (whether or not by way of exchange of dwelling-houses) to other dwelling-houses let under secure tenancies or secure contracts by that authority or another body.

• (2) A landlord authority shall—

• (a) maintain a set of the rules referred to in subsection (1) and of the rules which it has laid down governing the procedure to be followed in allocating its housing accommodation, and

• (b) make them available at its principal office for inspection at all reasonable hours, without charge, by members of the public.

• (3) A landlord authority which is a private registered provider of social housing or a registered social landlord shall, instead of complying with paragraph (b) of sub-section (2), send a set of the rules referred to in paragraph (a) of that subsection—

• (a) to the Relevant Authority, and

• (b) to the council of any district , Welsh county or county borough or London borough in which there are dwelling-houses let or to be let by the landlord authority under secure tenancies or secure contracts;

and a council to whom a set of rules is sent under this subsection shall make it available at its principal office for inspection at all reasonable hours, without charge, by members of the public.

• (4) A copy of the summary published under subsection (1) shall be given without charge, and a copy of the set of rules maintained under subsection (2) shall be given on payment of a reasonable fee, to any member of the public who asks for one.

• (5) At the request of a person who has applied to it for housing accommodation, a landlord authority shall make available to him, at all reasonable times and without charge, details of the particulars which he has given to the authority about himself and his family and which the authority has recorded as being relevant to his application for accommodation.

• (6) The provisions of this section do not apply to a landlord authority which is a local housing authority so far as they impose requirements corresponding to those to which such an authority is subject under section 168 of the Housing Act 1996 (provision of information about ... allocation schemes).

Miscellaneous

Contributions towards costs of transfers and exchanges.

107

Heating charges.

108

• (1) This section applies to secure tenants of dwelling-houses to which a heating authority supply heat produced at a heating installation.

• (2) The Secretary of State may by regulations require heating authorities to adopt such methods for determining heating charges payable by such tenants as will secure that the proportion of heating costs borne by each of those tenants is no greater than is reasonable.

• (3) The Secretary of State may by regulations make provision for entitling such tenants, subject to and in accordance with the regulations, to require the heating authority—

• (a) to give them, in such form as may be prescribed by the regulations, such information as to heating charges and heating costs as may be so prescribed, and

• (b) where such information has been given, to afford them reasonable facilities for inspecting the accounts, receipts and other documents supporting the information and for taking copies or extracts from them.

• (4) Regulations under this section—

• (a) May make different provision with respect to different cases or descriptions of case, including different provision for different areas;

• (b) may make such procedural, incidental, supplementary and transitional provision as appears to the Secretary of State to be necessary or expedient, and may in particular provide for any question arising under the regulations to be referred to and determined by the county court; and

• (c) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (5) In this section—

• (a) “heating authority” means a housing authority or housing action trust who operate a heating installation and supply to premises heat produced at the installation;

• (b) “heating installation” means a generating station or other installation for producing heat;

• (c) references to heat produced at an installation include steam produced from, and air and water heated by, heat so produced;

• (d) “heating charge” means an amount payable to a heating authority in respect of heat produced at a heating installation and supplied to premises, including in the case of heat supplied to premises let by the authority such an amount payable as part of the rent;

• (e) “heating costs” means expenses incurred by a heating authority in operating a heating installation.

Provisions not applying to tenancies of co-operative housing associations.

109

Sections 91 to 108 (assignment and subletting, repairs and improvements, variation of terms, provision of information and consultation, contributions to costs of transfers and heating charges) do not apply to a tenancy when the interest of the landlord belongs to a co-operative housing association.

Supplementary provisions

Jurisdiction of county court.

110

• (1) The county court has jurisdiction to determine questions arising under this Part and to entertain proceedings brought under this Part and claims, for whatever amount, in connection with a secure tenancy.

• (2) That jurisdiction includes jurisdiction to entertain proceedings on the following questions—

• (a) whether a consent required by section 92 (assignment by way of exchange) was withheld otherwise than on one or more of the grounds set out in Schedule 3,

• (b) whether a consent required by section 93(1)(b) or 97(1) (landlord’s consent to subletting of part of dwelling-house or to carrying out of improvements) was withheld or unreasonably withheld, or

• (c) whether a statement supplied in pursuance of section 104(2)(b) (written statement of certain terms of tenancy) is accurate,

notwithstanding that no other relief is sought than a declaration.

• (3) If a person takes proceedings in the High Court which, by virtue of this section, he could have taken in the county court, he is not entitled to recover any costs.

County court rules and directions.

111

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “dwelling-house”.

112

• (1) For the purposes of this Part a dwelling-house may be a house or a part of a house.

• (2) Land let together with a dwelling-house shall be treated for the purposes of this Part as part of the dwelling-house unless the land is agricultural land (as defined in section 26(3)(a) of the General Rate Act 1967) exceeding two acres.

Members of a person’s family.

113

• (1) A person is a member of another’s family within the meaning of this Part if—

• (a) he is the spouse or civil partner of that person, or he and that person live together as if they were a married couple or civil partners, or

• (b) he is that person’s parent, grandparent, child, grand-child, brother, sister, uncle, aunt, nephew or niece.

• (2) For the purpose of subsection (1)(b)—

• (a) a relationship by marriage or civil partnership shall be treated as a relationship by blood,

• (b) a relationship of the half-blood shall be treated as a relationship of the whole blood,

• (c) the stepchild of a person shall be treated as his child, and

• (d) an illegitimate child shall be treated as the legitimate child of his mother and reputed father.

Meaning of “landlord authority”.

114

• (1) In this Part “landlord authority” means—

• a local housing authority,

• a private registered provider of social housing other than a co-operative housing association,

• a registered social landlord other than a co-operative housing association,

• a housing trust , or which is a charity,

• a development corporation,

• a Mayoral development corporation,

• a housing action trust, or

• an urban development corporation, . . .

• . . .

other than an authority in respect of which an exemption certificate has been issued.

• (2) The Secretary of State may, on an application duly made by the authority concerned, issue an exemption certificate to—

• a development corporation,

• a housing action trust, or

• an urban development corporation, . . .

• . . .

if he is satisfied that it has transferred, or otherwise disposed of, at least three-quarters of the dwellings which have at any time before the making of the application been vested in it.

• (3) The application shall be in such form and shall be accompanied by such information as the Secretary of State may, either generally or in relation to a particular case, direct.

Meaning of “long tenancy”.

115

• (1) The following are long tenancies for the purposes of this Part, subject to subsection (2)—

• (a) a tenancy granted for a term certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by the tenant or by re-entry or forfeiture;

• (b) a tenancy for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, other than a tenancy by sub-demise from one which is not a long tenancy;

• (c) any tenancy granted in pursuance of Part V (the right to buy) , including any tenancy granted in pursuance of that Part ... by virtue of section 17 of the Housing Act 1996 (the right to acquire).

• (2) A tenancy granted so as to become terminable by notice after a death is not a long tenancy for the purposes of this Part, unless—

• (a) it is granted by a housing association which at the time of the grant is a private registered provider of social housing or a registered social landlord,

• (b) it is granted at a premium calculated by reference to a percentage of the value of the dwelling-house or of the cost of providing it, and

• (c) at the time it is granted it complies with the requirements of the regulations then in force under section 140(4)(b) of the Housing Act 1980 or paragraph 4(2)(b) of schedule 4A to the Leasehold Reform Act 1967 (conditions for exclusion of shared ownership leases from Part I of the Leasehold Reform Act 1967) or, in the case of a tenancy granted before any such regulations were brought into force, with the first such regulations to be in force.

Minor definitions.

116

• (1) In this Part—

• “common parts”, in relation to a dwelling-house let under a tenancy, means any part of a building comprising the dwelling-house and any other premises which the tenant is entitled under the terms of the tenancy to use in common with the occupiers of other dwelling-houses let by the landlord;

• “housing purposes” means the purposes for which dwelling-houses are held by local housing authorities under Part II (provision of housing) or purposes corresponding to those purposes;

• “rental period” means a period in respect of which a payment of rent falls to be made;

• “term”, in relation to a secure tenancy, includes a condition of the tenancy.

• (2) In this Part, the following terms have the same meaning as in the Renting Homes (Wales) Act 2016 (anaw 1)—

• (a) “contract-holder” (see section 7 (see also section 48) of that Act);

• (b) “prohibited conduct standard contract” (see section 116 of that Act);

• (c) “secure contract” (see section 8 of that Act).

Index of defined expressions: Part IV.

117

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression in the same section or paragraph):—

PART V — THE RIGHT TO BUY

The right to buy

The right to buy.

118

• (1) A secure tenant of a dwelling-house in England has the right to buy, that is to say, the right, in the circumstances and subject to the conditions and exceptions stated in the following provisions of this Part—

• (a) if the dwelling-house is a house and the landlord owns the freehold, to acquire the freehold of the dwelling-house;

• (b) if the landlord does not own the freehold or if the dwelling-house is a flat (whether or not the landlord owns the freehold), to be granted a lease of the dwelling-house.

• (2) Where a secure tenancy is a joint tenancy then, whether or not each of the joint tenants occupies the dwelling-house as his only or principal home, the right to buy belongs jointly to all of them or to such one or more of them as may be agreed between them; but such an agreement is not valid unless the person or at least one of the persons to whom the right to buy is to belong occupies the dwelling-house as his only or principal home.

• (3) For the purposes of this Part, a dwelling-house which is a commonhold unit (within the meaning of the Commonhold and Leasehold Reform Act 2002) shall be treated as a house and not as a flat.

Qualifying period for right to buy.

119

• (A1) The right to buy does not arise unless the period which, in accordance with Schedule 4, is to be taken into account for the purposes of this section is at least three years.

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Where the secure tenancy is a joint tenancy the condition in subsection (A1) ... need be satisfied with respect to one only of the joint tenants.

Exceptions to the right to buy.

120

The right to buy does not arise in the cases specified in Schedule 5 (exceptions to the right to buy).

Circumstances in which the right to buy cannot be exercised.

121

• (1) The right to buy cannot be exercised if the tenant is subject to an order of the court for possession of the dwelling-house.

• (2) The right to buy cannot be exercised if the person, or one of the persons, to whom the right to buy belongs—

• (a) has made a bankruptcy application that has not been determined or has a bankruptcy petition pending against him,

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) is an undischarged bankrupt, ...

• (d) has made a composition or arrangement with his creditors the terms of which remain to be fulfilled. or

• (e) is a person in relation to whom a moratorium period under a debt relief order applies (under Part 7A of the Insolvency Act 1986).

• (3) The right to buy cannot be exercised at any time during the suspension period under an order made under section 121A in respect of the secure tenancy.

Claim to exercise right to buy

Tenant’s notice claiming to exercise right to buy.

122

• (1) A secure tenant claims to exercise the right to buy by written notice to that effect served on the landlord.

• (2) In this Part “the relevant time”, in relation to an exercise of the right to buy, means the date on which that notice is served.

• (3) The notice may be withdrawn at any time by notice in writing served on the landlord.

Claim to share right to buy with members of family.

123

• (1) A secure tenant may in his notice under section 122 require that not more than three members of his family who are not joint tenants but occupy the dwelling-house as their only or principal home should share the right to buy with him.

• (2) He may validly do so in the case of any such member only if—

• (a) that member is his spouse , is his civil partner or has been residing with him throughout the period of twelve months ending with the giving of the notice, or

• (b) the landlord consents.

• (3) Where by such a notice any members of the tenant’s family are validly required to share the right to buy with the tenant, the right to buy belongs to the tenant and those members jointly and he and they shall be treated for the purposes of this Part as joint tenants.

Landlord’s notice admitting or denying right to buy.

124

• (1) Where a notice under section 122 (notice claiming to exercise right to buy) has been served by the tenant, the landlord shall, unless the notice is withdrawn, serve on the tenant within the period specified in subsection (2)... a written notice either—

• (a) admitting his right, or

• (b) denying it and stating the reasons why, in the opinion of the landlord, the tenant does not have the right to buy.

• (2) The period for serving a notice under this section is four weeks where the requirement of section 119 (qualifying period for the right to buy) is satisfied by a period or periods during which the landlord was the landlord on which the tenant’s notice under section 122 was served, and eight weeks in any other case.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Landlord’s notice of purchase price and other matters.

125

• (1) Where a secure tenant has claimed to exercise the right to buy and that right has been established (whether by the landlord’s admission or otherwise), the landlord shall—

• (a) within eight weeks where the right is that mentioned in section 118(1)(a) (right to acquire freehold), and

• (b) within twelve weeks where the right is that mentioned in section 118(1)(b) (right to acquire leasehold interest).

serve on the tenant a notice complying with this section.

• (2) The notice shall describe the dwelling-house, shall state the price at which, in the opinion of the landlord, the tenant is entitled to have the freehold conveyed or, as the case may be, the lease granted to him and shall, for the purpose of showing how the price has been arrived at, state—

• (a) the value at the relevant time,

• (b) the improvements disregarded in pursuance of section 127 (improvements to be disregarded in determining value), and

• (c) the discount to which the tenant is entitled, stating the period to be taken into account under section 129 (discount) and, where applicable, the amount mentioned in section 130(1) (reduction for previous discount) or section 131(1) or (2) (limits on amount of discount).

• (3) The notice shall state the provisions which, in the opinion of the landlord, should be contained in the conveyance or grant.

• (4) Where the notice states provisions which would enable the landlord to recover from the tenant—

• (a) service charges, or

• (b) improvement contributions,

the notice shall also contain the estimates and other information required by section 125A (service charges) or 125B (improvement contributions).

• (4A) The notice shall contain a description of any structural defect known to the landlord affecting the dwelling-house or the building in which it is situated or any other building over which the tenant will have rights under the conveyance or lease.

• (5) The notice shall also inform the tenant of—

• (a) the effect of sections 125D and 125E(1) and (4) (tenant’s notice of intention, landlord’s notice in default and effect of failure to comply),

• (b) his right under section 128 to have the value of the dwelling-house at the relevant time determined or re-determined by the district valuer,

• (c) the effect of section 136(2) (change of tenant after service of notice under section 125),

• (d) the effect of sections 140 and 141(1), (2) and (4) (landlord’s notices to complete and effect of failure to comply),

• (e) the effect of the provisions of this Part relating to the right to acquire on rent to mortgage terms, and

• (f) the relevant amount and multipliers for the time being declared by the Secretary of State for the purposes of section 143B.

Purchase price

Purchase price.

126

• (1) The price payable for a dwelling-house on a conveyance or grant in pursuance of this Part is—

• (a) the amount which under section 127 is to be taken as its value at the relevant time, less

• (b) the discount to which the purchaser is entitled under this Part.

• (2) References in this Part to the purchase price include references to the consideration for the grant of a lease.

Value of dwelling-house.

127

• (1) The value of a dwelling-house at the relevant time shall be taken to be the price which at that time it would realise if sold on the open market by a willing vendor—

• (a) on the assumptions stated for a conveyance in subsection (2) and for a grant in subsection (3), . . .

• (b) disregarding any improvements made by any of the persons specified in subsection (4) and any failure by any of those persons to keep the dwelling-house in good internal repair , and

• (c) on the assumption that any service charges or improvement contributions payable will not be less than the amounts to be expected in accordance with the estimates contained in the landlord’s notice under section 125.

• (2) For a conveyance the assumptions are—

• (a) that the vendor was selling for an estate in fee simple with vacant possession,

• (b) that neither the tenant nor a member of his family residing with him wanted to buy, and

• (c) that the dwelling-house was to be conveyed with the same rights and subject to the same burdens as it would be in pursuance of this Part.

• (3) For the grant of a lease the assumptions are—

• (a) that the vendor was granting a lease with vacant posession for the appropriate term defined in paragraph 12 of Schedule 6 (but subject to sub-paragraph (3) of that paragraph).

• (b) that neither the tenant nor a member of his family residing with him wanted to take the lease,

• (c) that the ground rent would not exceed £10 per annum or, if the lease would be a regulated lease within the meaning of the Leasehold Reform (Ground Rent) Act 2022, the rent permitted by that Act, and

• (d) that the grant was to be made with the same rights and subject to the same burdens as it would be in pursuance of this Part.

• (4) The persons referred to in subsection (1)(b) are—

• (a) the secure tenant,

• (b) any person who under the same tenancy was a secure tenant or an introductory tenantbefore him, and

• (c) any member of his family who, immediately before the secure tenancy was granted (or, where an introductory tenancy has become the secure tenancy, immediately before the introductory tenancy was granted), was a secure tenant or, an introductory tenant of the same dwelling-house under another tenancy,

but do not include, in a case where the secure tenant’s tenancy has at any time been assigned by virtue of section 92 (assignments by way of exchange), a person who under that tenancy was a secure tenant or an introductory tenant before the assignment.

• (5) In this section “introductory tenant” and “introductory tenancy” have the same meaning as in Chapter I of Part V of the Housing Act 1996.

Determination of value by district valuer.

128

• (1) Any question arising under this Part as to the value of a dwelling-house at the relevant time shall be determined by the district valuer in accordance with this section.

• (2) A tenant may require that value to be determined . . . by a notice in writing served on the landlord not later than three months after the service on him of the notice under section 125 (landlord’s notice of purchase price and other matters) or, if proceedings are then pending between the landlord and the tenant for the determination of any other question arising under this Part, within three months of the final determination of the proceedings.

• (3) If such proceedings are begun after a previous determination under this section—

• (a) the tenant may, by notice in writing served on the landlord within four weeks of the final determination of the proceedings, require the value of the dwelling-house at the relevant time to be re-determined, and

• (b) the landlord may at any time within those four weeks, whether or not a notice under paragraph (a) is served, require the district valuer to re-determine that value;

and where the landlord requires a re-determination to be made in pursuance of this subsection, it shall serve on the tenant a notice stating that the requirement is being or has been made.

• (4) Before making a determination or re-determination in pursuance of this section, the district valuer shall consider any representation made to him by the landlord or the tenant within four weeks from the service of the tenant’s notice under this section or, as the case may be, from the service of the landlord’s notice under subsection (3).

• (5) As soon as practicable after a determination or re-determination has been made in pursuance of this section, the landlord shall serve on the tenant a notice stating—

• (a) the effect of the determination or re-determination,

• (b) the matters mentioned in section 125(2) and (3) (terms for exercise of right to buy), and

• (c) the effect of section 128A(2) (right of district valuer to serve review notice and of landlord and tenant to request that such a notice is served).

• (5A) The landlord shall, as soon as practicable, serve a copy of the notice on the district valuer if—

• (a) the district valuer requests it; or

• (b) the landlord requests a review of the determination or re-determination under section 128A(2)(b).

• (5B) The tenant shall, as soon as practicable, serve a copy of the notice on the district valuer if the tenant requests a review of the determination or re-determination under section 128A(2)(b).

• (5C) For the purposes of subsections (5A) and (5B) it does not matter whether the request in question was made before, on or after the service of the notice in accordance with subsection (5).

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Discount.

129

• (1) Subject to the following provisions of this Part, a person exercising the right to buy is entitled to a discount of a percentage calculated by reference to the period which is to be taken into account in accordance with Schedule 4 (qualifying period for right to buy and discount).

• (2) The discount is, subject to any order under subsection (2A)—

• (a) in the case of a house, 35 per cent. plus one per cent. for each complete year by which the qualifying period exceeds five years, up to a maximum of 60 per cent.;

• (b) in the case of a flat, 50 per cent. plus two per cent. for each complete year by which the qualifying period exceeds five years, up to a maximum of 70 per cent.

• (2A) The Secretary of State may by order made with the consent of the Treasury provide that, in such cases as may be specified in the order—

• (a) the minimum percentage discount,

• (b) the percentage increase for each complete year of the qualifying period after the first five , or

• (c) the maximum percentage discount,

shall be such percentage, higher than that specified in subsection (2), as may be specified in the order.

• (2B) An order—

• (a) may make different provision with respect to different cases or descriptions of case,

• (b) may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient, and

• (c) shall be made by statutory instrument and shall not be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.

• (3) Where joint tenants exercise the right to buy, Schedule 4 shall be construed as if for the secure tenant there were substituted that one of the joint tenants whose substitution will produce the largest discount.

Reduction of discount where previous discount given.

130

• (1) There shall be deducted from the discount an amount equal to any previous discount qualifying, or the aggregate of previous discounts qualifying, under the provisions of this section.

• (2) A “previous discount” means a discount given before the relevant time—

• (a) on conveyance of the freehold, or a grant or assignment of a long lease, of a dwelling-house by a person within paragraph 7 or 7A of Schedule 4 (public sector landlords) or, in such circumstances as may be prescribed by order of the Secretary of State, by a person so prescribed, or

• (aa) on conveyance of the freehold, or a grant or assignment of a long lease of a dwelling-house by a person against whom the right to buy was exercisable by virtue of section 171A (preservation of right to buy on disposal to private sector landlord) to a person who was a qualifying person for the purposes of the preserved right to buy and in relation to whom that dwelling-house was the qualifying dwelling-house, or

• (ab) in pursuance of the provision required by paragraphs 3 to 5 or paragraph 7 of Schedule 6A (redemption of landlord’s share), or

• (b) in pursuance of the provision required by paragraph 1 of Schedule 8 (terms of shared ownership lease: right to acquire additional shares), or any other provision to the like effect or.

• (c) in pursuance of any provision of, or required by, this Part ... by virtue of section 17 of the Housing Act 1996 (the right to acquire).

• (3) A previous discount qualifies for the purposes of this section if it was given—

• (a) to the person or one of the persons exercising the right to buy, or

• (b) to the spouse , or civil partner, of that person or one of those persons (if they are living together at the relevant time), or

• (c) to a deceased spouse , or deceased civil partner, of that person or one of those persons (if they were living together at the time of the death);

and where a previous discount was given to two or more persons jointly, this section has effect as if each of them had been given an equal proportion of the discount.

• (4) Where the whole or part of a previous discount has been recovered by the person by whom it was given (or a successor in title of his)—

• (a) by the receipt of a payment determined by reference to the discount, or

• (b) by a reduction so determined of any consideration given by that person (or a successor in title of his), or

• (c) in any other way,

then, so much of the discount as has been so recovered shall be disregarded for the purposes of this section.

• (5) An order under this section—

• (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and

• (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (6) In this section “dwelling-house” includes any yard, garden, outhouses and appurtenances belonging to the dwelling-house or usually enjoyed with it.

Limits on amount of discount.

131

• (1) Except where the Secretary of State so determines, the discount shall not reduce the price below the amount which, in accordance with a determination made by him, is to be taken as representing so much of the costs incurred in respect of the dwelling-house as, in accordance with the determination—

• (a) is to be treated as incurred at or after the beginning of that period of account of the landlord in which falls the date which is eight years, or such other period of time as may be specified in an order made by the Secretary of State, earlier than the relevant time, and

• (b) is to be treated as relevant for the purposes of this sub-section;

and if the price before discount is below that amount, there shall be no discount.

• (1A) In subsection (1)(a) above “ period of account ”, in relation to any costs, means the period for which the landlord made up those of its accounts in which account is taken of those costs.

• (2) The discount shall not in any case reduce the price by more than such sum as the Secretary of State may by order prescribe.

• (3) An order or determination under this section may make different provision for different cases or descriptions of case, including different provision for different areas.

• (4) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

The right to a mortgage

The right to a mortgage.

132

The amount to be secured.

133

Tenant’s notice claiming to exercise right to a mortgage.

134

Landlord’s notice of amount and terms of mortgage.

135

Change of tenant or landlord after service of notice claiming right to buy

Change of secure tenant after notice claiming right to buy.

136

• (1) Where, after a secure tenant (“the former tenant”) has given a notice claiming the right to buy, another person (“the new tenant”)—

• (a) becomes the secure tenant under the same secure tenancy, otherwise than on an assignment made by virtue of section 92 (assignments by way of exchange), or

• (b) becomes the secure tenant under a periodic tenancy arising by virtue of section 86 (periodic tenancy arising on termination of fixed term) on the coming to an end of the secure tenancy,

the new tenant shall be in the same position as if the notice had been given by him and he had been the secure tenant at the time it was given.

• (2) If a notice under section 125 (landlord’s notice of purchase price and other matters) has been served on the former tenant, then, whether or not the former tenant has served a notice under subsection (1) of section 125D (tenant’s notice of intention), the new tenant shall serve a notice under that subsection within the period of twelve weeks beginning with whichever of the following is the later—

• (a) his becoming the secure tenant, . . .

• (b) where the right to have the value of the dwelling-house determined or re-determined by the district valuer is or has been exercised by him or the former tenant (or where the right to have the value of the dwelling-house re-determined by the district valuer is or has been exercised by the landlord), the relevant event .

• (2A) In subsection (2)(b) “ the relevant event ” means—

• (a) where a review notice was capable of being served under section 128A in relation to the determination or re-determination but no such notice was served during the period permitted by that section, the service of the notice under section 128(5) stating the effect of the determination or re-determination,

• (b) where a review notice was served under section 128A in relation to the determination or re-determination and section 128B(3) applied, the service on the new tenant or (as the case may be) the former tenant of the notice under section 128B(3), and

• (c) where a review notice was served under section 128A in relation to the determination or re-determination and section 128B(5) applied, the service of the notice under section 128B(7).

• (6) The preceding provisions of this section do not confer any right on a person required in pursuance of section 123 (claim to share right to buy with members of family) to share the right to buy, unless he could have been validly so required had the notice claiming to exercise the right to buy been given by the new tenant.

• (7) The preceding provisions of this section apply with the necessary modifications if there is a further change in the person who is the secure tenant.

Change of landlord after notice claiming right to buy or right to a mortgage.

137

• (1) Where the interest of the landlord in the dwelling-house passes from the landlord to another body after a secure tenant has given a notice claiming to exercise the right to buy . . ., all parties shall , subject to subsection (2), be in the same position as if the other body had become the landlord before the notice was given and had been given that notice and any further notice given by the tenant to the landlord and had taken all steps which the landlord had taken.

• (2) If the circumstances after the disposal differ in any material respect, as for example where—

• (a) the interest of the disponee in the dwelling-house after the disposal differs from that of the disponor before the disposal, or

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) any of the provisions of Schedule 5 (exceptions to the right to buy) becomes or ceases to be applicable,

all those concerned shall, as soon as practicable after the disposal, take all such steps (whether by way of amending or withdrawing and re-serving any notice or extending any period or otherwise) as may be requisite for the purpose of securing that all parties are, as nearly as may be, in the same position as they would have been if those circumstances had obtained before the disposal.

Completion of purchase in pursuance of right to buy

Duty of landlord to convey freehold or grant lease.

138

• (1) Where a secure tenant has claimed to exercise the right to buy and that right has been established, then, as soon as all matters relating to the grant . . . have been agreed or determined, the landlord shall make to the tenant—

• (a) if the dwelling-house is a house and the landlord owns the freehold, a grant of the dwelling-house for an estate in fee simple absolute, or

• (b) if the landlord does not own the freehold or if the dwelling-house is a flat (whether or not the landlord owns the freehold), a grant of a lease of the dwelling-house,

in accordance with the following provisions of this Part.

• (2) If the tenant has failed to pay the rent or any other payment due from him as a tenant for a period of four weeks after it has been lawfully demanded from him, the landlord is not bound to comply with subsection (1) while the whole or part of that payment remains outstanding.

• (2A) Subsection (2B) applies if an application is pending before any court—

• (a) for a demotion order , Ground 2 or 2ZA possession order or section 84A possession order to be made in respect of the tenant, or

• (b) for a suspension order to be made in respect of the tenancy.

• (2B) The landlord is not bound to comply with subsection (1) until such time (if any) as the application is determined without—

• (a) a demotion order , an operative Ground 2 or 2ZA possession order or an operative section 84A possession order being made in respect of the tenant, or

• (b) a suspension order being made in respect of the tenancy,

or the application is withdrawn.

• (2C) For the purposes of subsection (2A) and (2B)—

• “ demotion order ” means a demotion order under section 82A;

• “Ground 2 or 2ZA possession order” means an order for possession under Ground 2 or Ground 2ZA in Schedule 2;

• “operative Ground 2 or 2ZA possession order” means an order made under Ground 2 or Ground 2ZA in Schedule 2 which requires possession of the dwelling-house to be given up on a date specified in the order;”;

• “operative section 84A possession order” means an order under section 84A which requires possession of the dwelling-house to be given up on a date specified in the order;

• “section 84A possession order” means an order for possession under section 84A;

• “ suspension order ” means a suspension order under section 121A.

• (2D) Subsection (1) has effect subject to section 121A(5) (disapplication of subsection (1) where suspension order is made).

• (2E) Subsection (1) also has effect subject to—

• (a) section 138A(2) (operation of subsection (1) suspended while initial demolition notice is in force), and

• (b) section 138B(2) (subsection (1) disapplied where final demolition notice is served).

• (3) The duty imposed on the landlord by subsection (1) is enforceable by injunction.

Terms and effect of conveyance or grant and mortgage.

139

• (1) A conveyance of the freehold executed in pursuance of the right to buy shall conform with Parts I and II of Schedule 6; a grant of a lease so executed shall conform with Parts I and III of that Schedule; and Part IV of that Schedule has effect in relation to certain charges.

• (2) The secure tenancy comes to an end on the grant to the tenant of an estate in fee simple, or of a lease, in pursuance of the provisions of this Part relating to the right to buy; and if there is then a subtenancy section 139 of the Law of Property Act 1925 (effect of extinguishment of reversion) applies as on a merger or surrender.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Landlord’s first notice to complete.

140

• (1) The landlord may, subject to the provisions of this section, serve on the tenant at any time a written notice requiring him—

• (a) if all relevant matters have been agreed or determined, to complete the transaction within a period stated in the notice, or

• (b) if any relevant matters are outstanding, to serve on the landlord within that period a written notice to that effect specifying the matters,

and informing the tenant of the effect of this section and of section 141(1), (2) and (4) landlord’s second notice to complete).

• (2) The period stated in a notice under this section shall be such period (of at least 56 days) as may be reasonable in the circumstances.

• (3) A notice under this section shall not be served earlier than three months after—

• (a) the service of the landlord’s notice under section 125 (notice of purchase price and other matters), or

• (b) where a notice has been served under section 146 (landlord’s notice admitting or denying right to acquire on rent to mortgage terms), the service of that notice.

• (4) A notice under this section shall not be served if—

• (a) a requirement for the determination or re-determination of the value of the dwelling-house by the district valuer has not been complied with,

• (aa) a review notice (within the meaning of section 128A) has been served in relation to such a determination or re-determination, section 128B applies and the district valuer has neither—

• (i) served a notice under section 128B(3) (refusal to make further determination), nor

• (ii) served a notice under section 128B(7) (a determination effect notice),

• (ab) no such review notice has been served but such a notice may still be served under section 128A,

• (b) proceedings for the determination of any other relevant matter have not been disposed of, or

• (c) any relevant matter stated to be outstanding in a written notice served on the landlord by the tenant has not been agreed in writing or determined.

• (5) In this section “relevant matters” means matters relating to the grant . . ..

Landlord’s second notice to complete.

141

• (1) If the tenant does not comply with a notice under section 140 (landlord’s first notice to complete), the landlord may serve on him a further written notice—

• (a) requiring him to complete the transaction within a period stated in the notice, and

• (b) informing him of the effect of this section in the event of his failing to comply.

• (2) The period stated in a notice under this section shall be such period (of at least 56 days) as may be reasonable in the circumstances.

• (3) At any time before the end of that period (or that period as previously extended) the landlord may by a written notice served on the tenant extend it (or further extend it).

• (4) If the tenant does not comply with a notice under this section the notice claiming to exercise the right to buy shall be deemed to be withdrawn at the end of that period (or as the case may require, that period as extended under subsection (3)).

• (5) If a notice under this section has been served on the tenant and by virtue of section 138(2) (failure of tenant to pay rent, etc.) the landlord is not bound to complete, the tenant shall be deemed not to comply with the notice.

When tenant is entitled to defer completion,.

142

Right to acquire on rent to mortgage terms

Right to be granted a shared ownership lease.

143

• (1) Subject to subsection (2) and sections 142A, 143A and 143B, where—

• (a) a secure tenant has claimed to exercise the right to buy, and

• (b) his right to buy has been established and his notice claiming to exercise it remains in force,

he also has the right to acquire on rent to mortgage terms in accordance with the following provisions of this Part.

• (2) The right to acquire on rent to mortgage terms cannot be exercised if the exercise of the right to buy is precluded by section 121 (circumstances in which right to buy cannot be exercised).

• (3) Where the right to buy belongs to two or more persons jointly, the right to acquire on rent to mortgage terms also belongs to them jointly.

Tenant’s notice claiming to exercise right to shared ownership lease.

144

• (1) Subject to section 142A, a secure tenantclaims to exercise the right to acquire on rent to mortgage terms by written notice to that effect served on the landlord.

• (2) The notice may be withdrawn at any time by notice in writing served on the landlord.

• (3) On the service of a notice under this section, any notice served by the landlord under section 140 or 141 (landlord’s notices to complete purchase in pursuance of right to buy) shall be deemed to have been withdrawn; and no such notice may be served by the landlord whilst a notice under this section remains in force.

• (4) Where a notice under this section is withdrawn, the tenant may complete the transaction in accordance with the provisions of this Part relating to the right to buy.

Tenant’s initial share.

145

• (1) The tenant’s initial share in the dwelling-house shall be a multiple of the prescribed percentage and shall not be less than the minimum initial share.

• (2) The prescribed percentage is 12.5 per cent. or such other percentage as the Secretary of State may by order prescribe.

• (3) The minimum initial share is 50 per cent. or such other percentage as the Secretary of State may by order prescribe.

• (4) An order under this section—

• (a) may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and

• (b) may contain such transitional provisions as appear to the Secretary of State to be necessary or expedient.

• (5) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Landlord’s notice admitting or denying right.

146

• (1) Where a notice under section 144 (notice claiming to exercise the right to acquire on rent to mortgage terms) has been served by the tenant, the landlord shall, unless the notice is withdrawn, serve on the tenant as soon as practicable a written notice either—

• (a) admitting the tenant’s right and informing him of the matters mentioned in subsection (2), or

• (b) denying it and stating the reasons why, in the opinion of the landlord, the tenant does not have the right to acquire on rent to mortgage terms.

• (2) The matters are—

• (a) the relevant amount and multipliers for the time being declared by the Secretary of State for the purposes of section 143B;

• (b) the amount of the minimum initial payment;

• (c) the proportion which that amount bears to the price which would be payable if the tenant exercised the right to buy;

• (d) the landlord’s share on the assumption that the tenant makes the minimum initial payment;

• (e) the amount of the initial discount on that assumption; and

• (f) the provisions which, in the landlord’s opinion, should be contained in the conveyance or grant and the mortgage required by section 151B (mortgage for securing redemption of landlord’s share).

Landlord’s notice of initial contribution, etc.

147

• (1) Where a secure tenant has served—

• (a) a notice under section 146A(1)(a) stating that he intends to pursue his claim to exercise the right to acquire on rent to mortgage terms, and the amount of the initial payment which he proposes to make, or

• (b) a notice under section 146A(3)(b) varying the amount stated in a notice under section 146A(1)(a),

the landlord shall, as soon as practicable, serve on the tenant a written notice complying with this section.

• (2) The notice shall state—

• (a) the landlord’s share on the assumption that the amount of the tenant’s initial payment is that stated in the notice under section 146A(1)(a) or, as the case may be, section 146A(3)(b), and

• (b) the amount of the initial discount on that assumption,

determined in each case in accordance with section 148.

Tenant’s initial contribution and effective discount.

148

The landlord’s share shall be determined by the formula—

Change of landlord after notice claiming to exercise right to shared ownership lease.

149

• (1) Where the interest of the landlord in the dwelling-house passes from the landlord to another body after a secure tenant has given a notice claiming to exercise the right to acquire on rent to mortgage terms, all parties shall subject to subsection (2) be in the same position as if the other body—

• (a) had become the landlord before the notice was given, and

• (b) had been given that notice and any further notice given by the tenant to the landlord, and

• (c) had taken all steps which the landlord had taken.

• (2) If the circumstances after the disposal differ in any material respect, as for example where—

• (a) the interest of the disponee in the dwelling-house after the disposal differs from that of the disponor before the disposal, or

• (b) any of the provisions of Schedule 5 (exceptions to the right to buy) becomes or ceases to be applicable,

all those concerned shall, as soon as practicable after the disposal, take all such steps (whether by way of amending or withdrawing and re-serving any notice or extending any period or otherwise) as may be requisite for the purpose of securing that all parties are, as nearly as may be, in the same position as they would have been if those circumstances had obtained before the disposal.

Duty of landlord to grant shared ownership lease.

150

• (1) Where a secure tenant has claimed to exercise the right to acquire on rent to mortgage terms and that right has been established, then, as soon as all matters relating to the grant and to securing the redemption of the landlord’s share have been agreed or determined, the landlord shall make to the tenant—

• (a) if the dwelling-house is a house and the landlord owns the freehold, a grant of the dwelling-house for an estate in fee simple absolute, or

• (b) if the landlord does not own the freehold or if the dwelling-house is a flat (whether or not the landlord owns the freehold), a grant of a lease of the dwelling-house,

in accordance with the following provisions of this Part.

• (2) If the tenant has failed to pay the rent or any other payment due from him as a tenant for a period of four weeks after it has been lawfully demanded from him, the landlord is not bound to comply with subsection (1) while the whole or part of that payment remains outstanding.

• (3) The duty imposed on the landlord by subsection (1) is enforceable by injunction.

Terms and effect of grant and mortgage.

151

• (1) A conveyance of the freehold executed in pursuance of the right to acquire on rent to mortgage terms shall conform with Parts I and II of Schedule 6; a grant of a lease so executed shall conform with Parts I and III of that Schedule; and Part IV of that Schedule applies to such a conveyance or lease as it applies to a conveyance or lease executed in pursuance of the right to buy.

• (2) The secure tenancy comes to an end on the grant to the tenant of an estate in fee simple, or of a lease, in pursuance of the right to acquire on rent to mortgage terms; and if there is then a sub-tenancy section 139 of the Law of Property Act 1925 (effect of extinguishment of reversion) applies as on a merger or surrender.

Landlord’s first notice to complete.

152

• (1) The landlord may, subject to the provisions of this section, serve on the tenant at any time a written notice requiring him—

• (a) if all relevant matters have been agreed or determined, to complete the transaction within a period stated in the notice, or

• (b) if any relevant matters are outstanding, to serve on the landlord within that period a written notice to that effect specifying the matters,

and informing the tenant of the effect of this section and of section 153(1), (2) and (4) (landlord’s second notice to complete and its effect).

• (2) The period stated in a notice under this section shall be such period (of at least 56 days) as may be reasonable in the circumstances.

• (3) A notice under this section shall not be served earlier than twelve months after the service of the notice under section 146 (landlord’s notice admitting or denying right).

• (4) A notice under this section shall not be served if—

• (a) a requirement for the determination or re-determination of the value of the dwelling-house by the district valuer has not been complied with,

• (b) proceedings for the determination of any other relevant matter have not been disposed of, or

• (c) any relevant matter stated to be outstanding in a written notice served on the landlord by the tenant has not been agreed in writing or determined.

• (5) In this section “relevant matters” means matters relating to the grant and to securing the redemption of the landlord’s share.

Landlord’s second notice to complete.

153

• (1) If the tenant does not comply with a notice under section 152 (landlord’s first notice to complete), the landlord may serve on him a further written notice—

• (a) requiring him to complete the transaction within a period stated in the notice, and

• (b) informing him of the effect of this section in the event of his failing to comply.

• (2) The period stated in a notice under this section shall be such period (of at least 56 days) as may be reasonable in the circumstances.

• (3) At any time before the end of that period (or that period as previously extended) the landlord may by a written notice served on the tenant extend it (or further extend it).

• (4) If the tenant does not comply with a notice under this section, the notice claiming to exercise the right to acquire on rent to mortgage terms and the notice claiming to exercise the right to buy shall be deemed to have been withdrawn at the end of that period (or, as the case may require, that period as extended under subsection (3)).

• (5) If a notice under this section has been served on the tenant and by virtue of section 150(2) (failure of tenant to pay rent, etc.) the landlord is not bound to complete, the tenant shall be deemed not to comply with the notice.

Registration of title

Registration of title.

154

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Where the landlord’s title to the dwelling-house is not registered, the landlord shall give the tenant a certificate stating that the landlord is entitled to convey the freehold or make the grant subject only to such incumbrances, rights and interests as are stated in the conveyance or grant or summarised in the certificate.

• (3) Where the landlord’s interest in the dwelling-house is a lease, the certificate under subsection (2) shall also state particulars of that lease and, with respect to each superior title—

• (a) where it is registered, the title number;

• (b) where it is not registered, whether it was investigated in the usual way on the grant of the landlord’s lease.

• (4) A certificate under subsection (2) shall be—

• (a) in a form approved by the Chief Land Registrar, and

• (b) signed by such officer of the landlord or such other person as may be approved by the Chief Land Registrar.

• (5) The Chief Land Registrar shall, for the purpose of the registration of title, accept such a certificate as sufficient evidence of the facts stated in it; but if as a result he has to meet a claim against him under the Land Registration Act 2002 the landlord is liable to indemnify him.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions affecting future disposals

Repayment of discount on early disposal.

155

• (1) A conveyance of the freehold or grant of a lease in pursuance of this Part shall contain (unless, in the case of a conveyance or grant in pursuance of the right to buy, there is no discount) a covenant binding on the secure tenant and his successors in title to the following effect.

• (2) In the case of a conveyance or grant in pursuance of the right to buy, the covenant shall be to pay the landlord such sum (if any) as the landlord may demand in accordance with section 155A on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the conveyance or grant.

• (3) In the case of a conveyance or grant in pursuance of the right to acquire on rent to mortgage terms, the covenant shall be to pay the landlord such sum (if any) as the landlord may demand in accordance with section 155B on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the making of the initial payment.

• (3A) Where a secure tenant has served on his landlord an operative notice of delay, as defined in section 153A,—

• (a) the five years referred to in subsection (2) shall begin from a date which precedes the date of the conveyance of the freehold or grant of the lease by a period equal to the time (or, if there is more than one such notice, the aggregate of the times) during which, by virtue of section 153B, any payment of rent falls to be taken into account in accordance with subsection (3) of that section; and

• (b) any reference in subsection (3) (other than paragraph (a) thereof) to the making of the initial payment shall be construed as a reference to the date which precedes that payment by the period referred to in paragraph (a) of this subsection.

Liability to repay is a charge on the premises.

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• (1) The liability that may arise under the covenant required by section 155 is a charge on the dwelling-house, taking effect as if it had been created by deed expressed to be by way of legal mortgage.

• (2) Subject to subsections (2A) and (2B), the charge has priority as follows—

• (a) if it secures the liability that may arise under the covenant required by section 155(2), immediately after any legal charge securing an amount advanced to the secure tenant by an approved lending institution for the purpose of enabling him to exercise the right to buy;

• (b) if it secures the liability that may arise under the covenant required by section 155(3), immediately after the mortgage—

• (i) which is required by section 151B (mortgage for securing redemption of landlord’s share), and

• (ii) which, by virtue of subsection (2) of that section, has priority immediately after any legal charge securing an amount advanced to the secure tenant by an approved lending institution for the purpose of enabling him to exercise the right to acquire on rent to mortgage terms.

• (2A) The following, namely—

• (a) any advance which is made otherwise than for the purpose mentioned in paragraph (a) or (b) of subsection (2) and is secured by a legal charge having priority to the charge taking effect by virtue of this section, and

• (b) any further advance which is so secured,

shall rank in priority to that charge if, and only if, the landlord by written notice served on the institution concerned gives its consent; and the landlord shall so give its consent if the purpose of the advance or further advance is an approved purpose.

• (2B) The landlord may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this section to any advance or further advance which—