(1) Where a notice under section 146 has been served on a secure tenant, he shall within the period specified in subsection (2) serve a written notice on the landlord stating either—
(a) 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) that he withdraws that claim and intends to pursue his claim to exercise the right to buy, or
(c) that he withdraws both of those claims.
(2) The period for serving a notice under subsection (1) is the period of twelve weeks beginning with the service of the notice under section 146.
(3) The amount stated in a notice under subsection (1)(a)—
(a) shall not be less than the minimum initial payment and not more than the maximum initial payment, and
(b) may be varied at any time by notice in writing served on the landlord.
(1) The landlord may, at any time after the end of the period specified in section 146A(2), serve on the tenant a written notice—
(a) requiring him, if he has failed to serve the notice required by section 146A(1), to serve that notice within 28 days, and
(b) informing him of the effect of this subsection and subsection (4).
(2) At any time before the end of the period mentioned in subsection (1)(a) (or that period as previously extended) the landlord may by written notice served on the tenant extend it (or further extend it).
(3) If at any time before the end of that period (or that period as extended under subsection (2)) the circumstances are such that it would not be reasonable to expect the tenant to comply with a notice under this section, that period (or that period as so extended) shall by virtue of this subsection be extended (or further extended) until 28 days after the time when those circumstances no longer obtain.
(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under this section the notice claiming to exercise the right to acquire on rent to mortgage terms shall be deemed to be withdrawn at the end of that period (or, as the case may require, that period as extended under subsection (2) or (3)).
147 Notice of landlord’s share and initial discount.
(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.
148 Determination of landlord’s share, initial discount etc.
The landlord’s share shall be determined by the formula—
S=P-IPPx100
the amount of the initial discount shall be determined by the formula—
ID=IPPxD
and the amount of any previous discount which will be recovered by virtue of the transaction shall be determined by the formula—
RD=IPPxPD
where—
S = the landlord’s share expressed as a percentage;
P = the price which would be payable if the tenant were exercising the right to buy;
IP = the amount of the tenant’s initial payment (but disregarding any reduction in pursuance of section 153B(3));
ID = the amount of the initial discount;
D = the amount of the discount which would be applicable if the tenant were exercising the right to buy;
RD = the amount of any previous discount which will be recovered by virtue of the transaction;
PD = the amount of any previous discount which would be recovered if the tenant were exercising the right to buy.
149 Change of landlord after notice claiming right.
(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.
150 Duty of landlord to convey freehold or grant lease.
(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.
151 Terms and effect of conveyance or grant: general.
(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.
Schedule 6A (which makes provision for the redemption of the landlord’s share) shall have effect; and a conveyance of the freehold or a grant of a lease executed in pursuance of the right to acquire on rent to mortgage terms shall conform with that Schedule.
151B Mortgage for securing redemption of landlord’s share.
(1) The liability that may arise under the covenant required by paragraph 1 of Schedule 6A (covenant for the redemption of the landlord’s share in the circumstances there mentioned) shall be secured by a mortgage.
(2) Subject to subsections (3) and (4), the mortgage shall have 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.
(3) The following, namely—
(a) any advance which is made otherwise than for the purpose mentioned in subsection (2) and is secured by a legal charge having priority to the mortgage, and
(b) any further advance which is so secured,
shall rank in priority to the mortgage 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.
(4) The landlord may at any time by written notice served on an approved lending institution postpone the mortgage to any advance or further advance which—
(a) is made to the tenant by that institution, and
(b) is secured by a legal charge not having priority to the mortgage;
and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose.
(5) The approved lending institutions for the purposes of this section are—
the Relevant Authority,
(5A) In subsection (5) “the Relevant Authority” does not include the Regulator of Social Housing but does include the Homes and Communities Agency.
(5B) In subsection (5) “the Relevant Authority” also includes the Greater London Authority.
an authorised deposit taker
an authorised insurer
and an authorised mortgage lender.
(6) The approved purposes for the purposes of this section are—
(a) to enable the tenant to make an interim or final payment,
(b) to enable the tenant to defray, or to defray on his behalf, any of the following—
(i) the cost of any works to the dwelling-house,
(ii) any service charge payable in respect of the dwelling-house for works, whether or not to the dwelling-house, and
(iii) any service charge or other amount payable in respect of the dwelling-house for insurance, whether or not of the dwelling-house, and
(c) to enable the tenant to discharge, or to discharge on his behalf, any of the following—
(i) so much as is still outstanding of any advance or further advance which ranks in priority to the mortgage,
(ii) any arrears of interest on such an advance or further advance, and
(iii) any costs and expenses incurred in enforcing payment of any such interest, or repayment (in whole or in part) of any such advance or further advance.
(7) Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section.
(8) The Secretary of State may by order prescribe—
(a) matters for which the deed by which the mortgage is effected must make provision, and
(b) terms which must, or must not, be contained in that deed,
but only in relation to deeds executed after the order comes into force.
(9) The deed by which the mortgage is effected may contain such other provisions as may be—
(a) agreed between the mortgagor and the mortgagee, or
(b) determined by the county court to be reasonably required by the mortgagor or the mortgagee.
(10) 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.
(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.
(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.
(1) Where a secure tenant has claimed to exercise the right to buy, he may serve on his landlord a notice (in this section referred to as an “initial notice of delay”) in any of the following cases, namely,—
(a) where the landlord has failed to serve a notice under section 124 within the period appropriate under subsection (2) ...of that section;
(b) where the tenant’s right to buy has been established and the landlord has failed to serve a notice under section 125 within the period appropriate under subsection (1) of that section;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) where the tenant considers that delays on the part of the landlord are preventing him from exercising expeditiously his right to buy or his right to acquire on rent to mortgage terms;
and where an initial notice of delay specifies either of the cases in paragraphs (a) and (b), any reference in this section or section 153B to the default date is a reference to the end of the period referred to in the paragraph in question or, if it is later, the day appointed for the coming into force of section 124 of the Housing Act 1988.
(2) An initial notice of delay—
(a) shall specify the most recent action of which the tenant is aware which has been taken by the landlord pursuant to this Part of this Act; and
(b) shall specify a period (in this section referred to as “the response period”), not being less than one month, beginning on the date of service of the notice, within which the service by the landlord of a counter notice under subsection (3) will have the effect of cancelling the initial notice of delay.
(3) Within the response period specified in an initial notice of delay or at any time thereafter, the landlord may serve on the tenant a counter notice in either of the following circumstances—
(a) if the initial notice specifies either of the cases in paragraphs (a) and (b)of subsection (1) and the landlord has served, or is serving together with the counter notice, the required notice under section 124, or section 125, as the case may be; or
(b) if the initial notice specifies the case in subsection (1)(e) and there is no action under this Part which, at the beginning of the response period, it was for the landlord to take in order to allow the tenant expeditiously to exercise his right to buy or his right to acquire on rent to mortgage terms and which remains to be taken at the time of service of the counter notice.
(4) A counter notice under subsection (3) shall specify the circumstances by virtue of which it is served.
(5) At any time when—
(a) the response period specified in an initial notice of delay has expired, and
(b) the landlord has not served a counter notice under subsection (3),
the tenant may serve on the landlord a notice (in this section and section 153B referred to as an “operative notice of delay”) which shall state that section 153B will apply to payments of rent made by the tenant on or after the default date or, if the initial notice of delay specified the case in subsection (1)(e), the date of the service of the notice.
(6) If, after a tenant has served an initial notice of delay, a counter notice has been served under subsection (3), then, whether or not the tenant has also served an operative notice of delay, if any of the cases in subsection (1) again arises, the tenant may serve a further initial notice of delay and the provisions of this section shall apply again accordingly.
153B Payments of rent attributable to purchase price etc.
(1) Where a secure tenant has served on his landlord an operative notice of delay, this section applies to any payment of rent which is made on or after the default date or, as the case may be, the date of the service of the notice and before the occurrence of any of the following events (and, if more than one event occurs, before the earliest to occur)—
(a) the service by the landlord of a counter notice under section 153A(3);
(b) the date on which the landlord makes to the tenant the grant required by section 138 or, as the case may be, section 150;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) the date on which the tenant withdraws or is deemed to have withdrawn the notice claiming to exercise the right to buy or, as the case may be, the notice claiming to exercise the right to acquire on rent to mortgage terms; and
(e) the date on which the tenant ceases to be entitled to exercise the right to buy.
(2) Except where this section ceases to apply on a date determined under paragraph (d) or (e) of subsection (1), so much of any payment of rent to which this section applies as does not consist of—
(a) a sum due on account of rates or council tax, or
(b) a service charge (as defined in section 621A),
shall be treated not only as a payment of rent but also as a payment on account by the tenant which is to be taken into account in accordance with subsection (3).
(3) In a case where subsection (2) applies, the amount which, apart from this section, would be the purchase price or, as the case may be, the the tenant’s initial payment shall be reduced by an amount equal to the aggregate of—
(a) the total of any payments on account treated as having been paid by the tenant by virtue of subsection (2); and
(b) if those payments on account are derived from payments of rent referable to a period of more than twelve months, a sum equal to the appropriate percentage of the total referred to in paragraph (a).
(4) In subsection (3)(b) “ the appropriate percentage ” means 50 per cent. or such other percentage as may be prescribed.
(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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(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.
155A Amount of discount which may be demanded by landlord: right to buy
(1) For the purposes of the covenant mentioned in section 155(2), the landlord may demand such sum as he considers appropriate, up to and including the maximum amount specified in this section.
(2) The maximum amount which may be demanded by the landlord is a percentage of the price or premium paid for the first relevant disposal which is equal to the discount to which the secure tenant was entitled, where the discount is expressed as a percentage of the value which under section 127 was taken as the value of the dwelling-house at the relevant time.
(3) But for each complete year which has elapsed after the conveyance or grant and before the disposal the maximum amount which may be demanded by the landlord is reduced by one-fifth.
(4) This section is subject to section 155C.
155B Amount of discount which may be demanded by landlord: right to acquire on rent to mortgage terms
(1) For the purposes of the covenant mentioned in section 155(3), the landlord may demand such sum as he considers appropriate, up to and including the maximum amount specified in this section.
(2) The maximum amount which may be demanded by the landlord is the discount (if any) to which the tenant was entitled on the making of—
(a) the initial payment,
(b) any interim payment made before the disposal, or
(c) the final payment if so made,
reduced, in each case, by one-fifth for each complete year which has elapsed after the making of the initial payment and before the disposal.
(1) In calculating the maximum amount which may be demanded by the landlord under section 155A, such amount (if any) of the price or premium paid for the disposal which is attributable to improvements made to the dwelling-house—
(a) by the person by whom the disposal is, or is to be, made, and
(b) after the conveyance or grant and before the disposal,
shall be disregarded.
(2) The amount to be disregarded under this section shall be such amount as may be agreed between the parties or determined by the district valuer.
(3) The district valuer shall not be required by virtue of this section to make a determination for the purposes of this section unless—
(a) it is reasonably practicable for him to do so; and
(b) his reasonable costs in making the determination are paid by the person by whom the disposal is, or is to be, made.
(4) If the district valuer does not make a determination for the purposes of this section (and in default of an agreement), no amount is required to be disregarded under this section.
156 Liability to repay is a charge on the premises.
(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—
(a) is made to the tenant by that institution, and
(b) is secured by a legal charge not having priority to that charge;
and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3A) The covenant required by section 155 (covenant for repayment of discount) does not, by virtue of its binding successors in title of the tenant, bind a person exercising rights under a charge having priority over the charge taking effect by virtue of this section, or a person deriving title under him; and a provision of the conveyance or grant, or of a collateral agreement is void in so far as it purports to authorise a forfeiture, or to impose a penalty or disability, in the event of any such person failing to comply with that covenant.
(4) The approved lending institutions for the purposes of this section are—
the Relevant Authority,
(4ZA) In subsection (4) “the Relevant Authority” does not include the Regulator of Social Housing but does include the Homes and Communities Agency.
(4ZB) In subsection (4) “the Relevant Authority” also includes the Greater London Authority.
an authorised deposit taker
an authorised insurer
an authorised mortgage lender. . . ..
(4A) The approved purposes for the purposes of this section are—
(a) to enable the tenant to make an interim or final payment,
(b) to enable the tenant to defray, or to defray on his behalf, any of the following—
(i) the cost of any works to the dwelling-house,
(ii) any service charge payable in respect of the dwelling-house for works, whether or not to the dwelling-house, and
(iii) any service charge or other amount payable in respect of the dwelling-house for insurance, whether or not of the dwelling-house, and
(c) to enable the tenant to discharge, or to discharge on his behalf, any of the following—
(i) so much as is still outstanding of any advance or further advance which ranks in priority to the charge taking effect by virtue of this section,
(ii) any arrears of interest on such an advance or further advance, and
(iii) any costs and expenses incurred in enforcing payment of any such interest, or repayment (in whole or in part) of any such advance or further advance.
(4B) Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) A conveyance of the freehold or grant of a lease in pursuance of this Part shall contain the following covenant, which shall be binding on the secure tenant and his successors in title.
This is subject to subsection (8).
(2) The covenant shall be to the effect that, until the end of the period of ten years beginning with the conveyance or grant, there will be no relevant disposal which is not an exempted disposal, unless the prescribed conditions have been satisfied in relation to that or a previous such disposal.
(3) In subsection (2) “ the prescribed conditions ” means such conditions as are prescribed by regulations under this section at the time when the conveyance or grant is made.
(4) The Secretary of State may by regulations prescribe such conditions as he considers appropriate for and in connection with conferring on—
(a) a landlord who has conveyed a freehold or granted a lease to a person (“ the former tenant ”) in pursuance of this Part, or
(b) such other person as is determined in accordance with the regulations,
a right of first refusal to have a disposal within subsection (5) made to him for such consideration as is mentioned in section 158.
(5) The disposals within this subsection are—
(a) a reconveyance or conveyance of the dwelling-house; and
(b) a surrender or assignment of the lease.
(6) Regulations under this section may, in particular, make provision—
(a) for the former tenant to offer to make such a disposal to such person or persons as may be prescribed;
(b) for a prescribed recipient of such an offer to be able either to accept the offer or to nominate some other person as the person by whom the offer may be accepted;
(c) for the person who may be so nominated to be either a person of a prescribed description or a person whom the prescribed recipient considers, having regard to any prescribed matters, to be a more appropriate person to accept the offer;
(d) for a prescribed recipient making such a nomination to give a notification of the nomination to the person nominated, the former tenant and any other prescribed person;
(e) for authorising a nominated person to accept the offer and for determining which acceptance is to be effective where the offer is accepted by more than one person;
(f) for the period within which the offer may be accepted or within which any other prescribed step is to be, or may be, taken;
(g) for the circumstances in which the right of first refusal lapses (whether following the service of a notice to complete or otherwise) with the result that the former tenant is able to make a disposal on the open market;
(h) for the manner in which any offer, acceptance or notification is to be communicated.
(7) In subsection (6) any reference to the former tenant is a reference to the former tenant or his successor in title.
Nothing in that subsection affects the generality of subsection (4).
(8) In a case to which section 157(1) applies—
(a) the conveyance or grant may contain a covenant such as is mentioned in subsections (1) and (2) above instead of a covenant such as is mentioned in section 157(1), but
(b) it may do so only if the Secretary of State or, where the conveyance or grant is executed by a housing association within section 6A(3) or (4), the Relevant Authority consents.
(9) Consent may be given in relation to—
(a) a particular disposal, or
(b) disposals by a particular landlord or disposals by landlords generally,
and may, in any case, be given subject to conditions.
(10) Regulations under this section—
(a) may make different provision with respect to different cases or descriptions of case; and
(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(11) The limitation imposed by a covenant within subsection (2) (whether the covenant is imposed in pursuance of subsection (1) or (8)) is a local land charge.
(12) The Chief Land Registrar must enter in the register of title a restriction reflecting the limitation imposed by any such covenant.
157 Restriction on disposal of dwelling-houses in National Parks, etc.
(1) Where in pursuance of this Part a conveyance or grant is executed by a local authority . . . or a housing association (“the landlord”) of a dwelling-house situated in—
(a) a National Park,
(b) an area designated under section 82 of the Countryside and Rights of Way Act 2000 as an area of outstanding natural beauty, or
(c) an area designated by order of the Secretary of State as a rural area,
the conveyance or grant may (subject to section 156A(8) contain a covenant limiting the freedom of the tenant (including any successor in title of his and any person deriving title under him or such a successor) to dispose of the dwelling-house in the manner specified below.
(2) The limitation is, . . . ), that until such time (if any) as may be notified in writing by the landlord to the tenant or a successor in title of his
(a) , there will be no relevant disposal which is not an exempted disposal without the written consent of the landlord; but that consent shall not be withheld if the disposal is to a person satisfying the condition stated in subsection (3) and—
(b) there will be no disposal by way of tenancy or licence without the written consent of the landlord unless the disposal is to a person satisfying that condition or by a person whose only or principal home is and, throughout the duration of the tenancy or licence, remains the dwelling-house.
(3) The condition is that the person to whom the disposal is made (or, if it is made to more than one person, at least one of them) has, thoughout the period of three years immediately preceding the application for consent or, in the case of a disposal by way of tenancy or licence, preceding the disposal—
(a) had his place of work in a region designated by order of the Secretary of State which, or part of which, is comprised in the National Park or area, or
(b) had his only or principal home in such a region;
or has had the one in part or parts of that period and the other in the remainder; but the region need not have been the same throughout the period.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) A disposal in breach of such a covenant as is mentioned in subsection (1) is void and, so far as it relates to disposals by way of tenancy or licence, such a covenant may be enforced by the landlord as if—
(a) the landlord were possessed of land adjacent to the house concerned; and
(b) the covenant were expressed to be made for the benefit of such adjacent land.
(6A) Any reference in the preceding provisions of this section to a disposal by way of tenancy or licence does not include a reference to a relevant disposal or an exempted disposal.
(7) Where such a covenant imposes the limitation specified in subsection (2), the limitation is a local land charge and the Chief Land Registrar shall enter a restriction in the register of title reflecting the limitation.
(8) 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.
(1) The consideration for such a disposal as is mentioned in section 156A(4) shall be such amount as may be agreed between the parties, or determined by the district valuer, as being the amount which is to be taken to be the value of the dwelling-house at the time when the offer is made (as determined in accordance with regulations under that section).
(2) That value shall be taken to be the price which, at that time, the interest to be reconveyed , conveyed, surrendered or assigned would realise if sold on the open market by a willing vendor, on the assumption that any liability under—
(a) the covenant required by section 155 (repayment of discount on early disposal), and
(aa) any covenant required by paragraph 1 of Schedule 6A (obligation to redeem landlord’s share where conveyance or grant executed in pursuance of right to acquire on rent to mortgage terms), and
(b) any convenant required by paragraph 6 of Schedule 8 (payment for outstanding share on disposal of dwelling-house subject to shared ownership lease),
would be discharged by the vendor.
(3) If the the offer is accepted in accordance with regulations under section 156A, no payment shall be required in pursuance of any such covenant as is mentioned in subsection (2), but the consideration shall be reduced , subject to subsection (4), by such amount (if any) as, on a disposal made at the time the offer was made, being a relevant disposal which is not an exempted disposal, would fall to be paid under that covenant.
(4) Where there is a charge on the dwelling-house having priority over the charge to secure payment of the sum due under the covenant mentioned in subsection (2), the consideration shall not be reduced under subsection (3) below the amount necessary to discharge the outstanding sum secured by the first-mentioned charge at the date of the offer to (as determined in accordance with regulations under section 156A).
(1) A disposal, whether of the whole or part of the dwelling-house, is a relevant disposal for the purposes of this Part if it is—
(a) a further conveyance of the freehold or an assignment of the lease, or
(b) the grant of a lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack rent.
(2) For the purposes of subsection (1)(b) it shall be assumed—
(a) that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised, and
(b) that any option to terminate a lease or sub-lease is not exercised.
(1) A disposal is an exempted disposal for the purposes of this Part if—
(a) it is a disposal of the whole of the dwelling-house and a further conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person (as defined in subsection (2));
(b) it is a vesting of the whole of the dwelling-house in a person taking under a will or on an intestacy;
(c) it is a disposal of the whole of the dwelling-house in pursuance of any such order as is mentioned in subsection (3);
(d) it is a compulsory disposal (as defined in section 161); or
(e) it is a disposal of property consisting of land included in the dwelling-house by virtue of section 184 (land let with or used for the purposes of the dwelling-house).
(2) For the purposes of subsection (1)(a), a person is a qualifying person in relation to a disposal if—
(a) he is the person, or one of the persons, by whom the disposal is made,
(b) he is the spouse or a former spouse , or the civil partner or a former civil partner, of that person, or one of those persons, or
(c) he is a member of the family of that person, or one of those persons, and has resided with him throughout the period of twelve months ending with the disposal.
(3) The orders referred to in subsection (1)(c) are orders under—
(a) section 24 or 24A of the Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings),
(b) section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate),
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents), or
(e) Part 2 or 3 of Schedule 5, or paragraph 9 of Schedule 7, to the Civil Partnership Act 2004 (property adjustment orders, or orders for the sale of property, in connection with civil partnership proceedings or after overseas dissolution of civil partnership, etc. ).
In this Part a “compulsory disposal” means a disposal of property which is acquired compulsorily, or is acquired by a person who has made or would have made, or for whom another person has made or would have made, a compulsory purchase order authorising its compulsory purchase for the purposes for which it is acquired.
162 Exempted disposals which end liability under covenants.
Where there is a relevant disposal which is an exempted disposal by virtue of section 160(1)(d) or (e) (compulsory disposals or disposals of land let with or used for purposes of dwelling-house)—
(a) the covenant required by section 155 (repayment of discount on early disposal) is not binding on the person to whom the disposal is made or any successor in title of his and that covenant and the charge taking effect by virtue of section 156 cease to apply in relation to the property disposed of, and
(aa) the covenant required by section 156A (right of first refusal for landlord etc. ) is not binding on the person to whom the disposal is made or any successor in title of his, and that covenant ceases to apply in relation to the property disposed of, and
(b) any such covenant as is mentioned in section 157 (restriction on disposal of dwelling-houses in National Parks, etc.) ceases to apply in relation to the property disposed of.
(1) For the purposes of this Part the grant of an option enabling a person to call for a relevant disposal which is not an exempted disposal shall be treated as such a disposal made to him.
(2) For the purposes of section 157(2) (requirement of consent to disposal of dwelling-house in National Park, etc.) a consent to such a grant shall be treated as a consent to a disposal in pursuance of the option.
163A Treatment of deferred resale agreements for purposes of section 155
(1) If a secure tenant or his successor in title enters into an agreement within subsection (3), any liability arising under the covenant required by section 155 shall be determined as if a relevant disposal which is not an exempted disposal had occurred at the appropriate time.
(2) In subsection (1) “ the appropriate time ” means—
(a) the time when the agreement is entered into, or
(b) if it was made before the beginning of the discount repayment period, immediately after the beginning of that period.
(3) An agreement is within this subsection if it is an agreement between the secure tenant or his successor in title and any other person—
(a) which is made (expressly or impliedly) in contemplation of, or in connection with, the tenant exercising, or having exercised, the right to buy,
(b) which is made before the end of the discount repayment period, and
(c) under which a relevant disposal (other than an exempted disposal) is or may be required to be made to any person after the end of that period.
(4) Such an agreement is within subsection (3)—
(a) whether or not the date on which the disposal is to take place is specified in the agreement, and
(b) whether or not any requirement to make the disposal is or may be made subject to the fulfilment of any condition.
(5) The Secretary of State may by order provide—
(a) for subsection (1) to apply to agreements of any description specified in the order in addition to those within subsection (3);
(b) for subsection (1) not to apply to agreements of any description so specified to which it would otherwise apply.
(6) An order under subsection (5)—
(a) may make different provision with respect to different cases or descriptions of case; and
(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(7) In this section—
“ agreement ” includes arrangement;
“ the discount repayment period ” means the period of three or five years that applies for the purposes of section 155(2) or (3) (depending on whether the tenant’s notice under section 122 was given before or on or after the date of the coming into force of section 185 of the Housing Act 2004).
164 Secretary of State’s general power to intervene.
(1) The Secretary of State may use his powers under this section where it appears to him that tenants generally, a tenant or tenants of a particular landlord, or tenants of a description of landlords, have or may have difficulty in exercising effectively and expeditiously the right to buy or the right to acquire on rent to mortgage terms.
(2) The powers may be exercised only after he has given the landlord or landlords notice in writing of his intention to do so and while the notice is in force.
(3) Such a notice shall be deemed to be given 72 hours after it has been sent.
(4) Where a notice under this section has been given to a landlord or landlords, no step taken by the landlord or any of the landlords while the notice is in force or before it was given has any effect in relation to the exercise by a secure tenant of the right to buy, or the right to acquire on rent to mortgage terms, except in so far as the notice otherwise provides.
(5) While a notice under this section is in force the Secretary of State may do all such things as appear to him necessary or expedient to enable secure tenants of the landlord or landlords to which the notice was given to exercise the right to buy, and the right to acquire on rent to mortgage terms; and he is not bound to take the steps which the landlord would have been bound to take under this Part.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) For the purpose of conveying a freehold or granting a lease in the exercise of his powers under section 164 the Secretary of State may execute a document, to be known as a vesting order, containing such provisions as he may determine; and for the purposes of stamp duty the vesting order shall be treated as a document executed by the landlord.
(2) A vesting order has the like effect, except so far as it otherwise provides, as a conveyance or grant duly executed in pursuance of this Part, and, in particular, binds both the landlord and its successors in title and the tenant and his successors in title (including any person deriving title under him or them) to the same extent as if the covenants contained in it and expressed to be made on their behalf had been entered into by them.
(3) If the landlord’s title to the dwelling-house in respect of which a vesting order is made is not registered, the vesting order shall contain a certificate stating that the freehold conveyed or grant made by it is subject only to such incumbrances, rights and interests as are stated elsewhere in the vesting order or summarised in the certificate.
(4) The Chief Land Registrar shall, on a vesting order being presented to him, register the tenant as proprietor of the title concerned; and if the title has not previously been registered—
(a) he shall so register him with an absolute title, or as the case may require a good leasehold title, and
(b) he shall, for the purpose of the registration, accept any such certificate as is mentioned in subsection (3) as sufficient evidence of the facts stated in it.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) If a person suffers loss in consequence of a registration under this section in circumstances in which he would have been entitled to be indemnified under Schedule 8 to the Land Registration Act 2002 by the Chief Land Registrar had the registration of the tenant as proprietor of the title been effected otherwise than under this section, he is instead entitled to be indemnified by the Secretary of State and section 166(4) of this Act (recovery of Secretary of State’s costs from landlord) applies accordingly.
(1) A notice under section 164 may be withdrawn by a further notice in writing, either completely or in relation to a particular landlord or a particular case or description of case.
(2) The further notice may give such directions as the Secretary of State may think fit for the completion of a transaction begun before the further notice was given; and such directions are binding on the landlord, and may require the taking of steps different from those which the landlord would have been required to take if the Secretary of State’s powers under section 164 had not been used.
(3) Where in consequence of the exercise of his powers under section 164 the Secretary of State receives sums due to a landlord, he may retain them while a notice under that section is in force in relation to the landlord and is not bound to account to the landlord for interest accruing on them.
(4) Where the Secretary of State exercises his powers under section 164 with respect to secure tenants of a landlord, he may—
(a) calculate, in such manner and on such assumptions as he may determine, the costs incurred by him in doing so, and
(b) certify a sum as representing those costs;
and a sum so certified is a debt from the landlord to the Secretary of State payable on a date specified in the certificate, together with interest from that date at a rate so specified.
(5) sums payable under subsection (4) may, without prejudice to any other method of recovery, be recovered from the landlord by the withholding of sums due from the Secretary of State, including sums payable to the landlord and received by the Secretary of State in consequence of his exercise of his powers under section 164.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
167 Power to give directions as to covenants and conditions.
(1) Where it appears to the Secretary of State that, if covenants or conditions of any kind were included in conveyances or grants of dwelling-houses of any description executed in pursuance of this Part—
(a) the conveyances would not conform with Parts I and II of Schedule 6, or
(b) the grants would not conform with Parts I and III of that Schedule or
(c) in the case of conveyances or grants executed in pursuance of the right to acquire on rent to mortgage terms, the conveyances or grants would not conform with Schedule 6A,
he may direct landlords generally, landlords of a particular description or particular landlords not to include covenants or conditions of that kind in such conveyances or grants executed on or after a date specified in the direction.
(2) A direction under this section may be varied or withdrawn by a subsequent direction.
168 Effect of direction under s. 167 on existing covenants and conditions.
(1) If a direction under section 167 so provides, the provisions of this section shall apply in relation to a covenant or condition which—
(a) was included in a conveyance or grant executed before the date specified in the direction, and
(b) could not have been so included if the conveyance or grant had been executed on or after that date.
(2) The covenant or condition shall be discharged or (if the direction so provides) modified, as from the specified date, to such extent or in such manner as may be provided by the direction; and the discharge or modification is binding on all persons entitled or capable of becoming entitled to the benefit of the covenant or condition.
(3) The landlord by whom the conveyance or grant was executed shall, within such period as may be specified in the direction—
(a) serve on the person registered as the proprietor of the dwelling-house, and on any person registered as the proprietor of a charge affecting the dwelling-house, a written notice informing him of the discharge or modification, and
(b) on behalf of the person registered as the proprietor of the dwelling-house, apply to the Chief Land Registrar (and pay the appropriate fee) for notice of the discharge or modification to be entered in the register.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Where it appears to the Secretary of State necessary or expedient for the purpose of determining whether his powers under section 164 or 166 (general power to intervene) or section 167 or 168 (power to give directions as to covenants and conditions) are exercisable, or for or in connection with the exercise of those powers, he may by notice in writing to a landlord require it—
(a) at such time and at such place as may be specified in the notice, to produce any document, or
(b) within such period as may be so specified or such longer period as the Secretary of State may allow, to furnish a copy of any document or supply any information.
(2) Any officer of the landlord designated in the notice for that purpose or having custody or control of the document or in a position to give that information shall, without instructions from the landlord, take all reasonable steps to ensure that the notice is complied with.
(3) In this section references to a landlord include—
(a) a landlord by whom a conveyance or grant was executed in pursuance of this Part. . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
170 Power to give assistance in connection with legal proceedings.
(1) This section applies to—
(a) proceedings under this Part or to determine a question arising under or in connection with this Part, and
(b) proceedings to determine a question arising under or in connection with a conveyance or grant executed in pursuance of this Part,
other than proceedings to determine a question as to the value of a dwelling-house (or part of a dwelling-house).
(2) A party or prospective party to proceedings or prospective proceedings to which this section applies, who—
(a) has claimed to exercise or has exercised the right to buy or the right to acquire on rent to mortgage terms, or
(b) is a successor in title of a person who has exercised either of those rights,
may apply to the Secretary of State for assistance under this section.
(3) The Secretary of State may grant the application if he thinks fit to do so on the ground—
(a) that the case raises a question of principle, or
(b) that it is unreasonable having regard to the complexity of the case, or to any other matter, to expect the applicant to deal with it without such assistance,
or by reason of any other special consideration.
(4) Assistance by the Secretary of State under this section may include—
(a) giving advice.
(b) procuring or attempting to procure the settlement of the matter in dispute,
(c) arranging for the giving of advice or assistance by a solicitor or counsel,
(d) arranging for representation by a solicitor or counsel, including such asistance as is usually given by a solicitor or counsel in the steps preliminary or incidental to any proceedings, or in arriving at or giving effect to a compromise to avoid or bring to an end any proceedings, and
(e) any other form of assistance which the Secretary of State may consider appropriate;
but paragraph (d) does not affect the law and practice regulating the descriptions of persons who may appear in, conduct, defend and address the court in any proceedings.
(5) In so far as expenses are incurred by the Secretary of State in providing the applicant with assistance under this section, the recovery of those expenses (as taxed or assessed in such manner as may be prescribed by rules of court) shall constitute a first charge for the benefit of the Secretary of State—
(a) on any costs which (whether by virtue of a judgment or order of a court or an agreement or otherwise) are payable to the applicant by any other person in respect of the matter in connection with which the assistance was given, and
(b) so far as relates to any costs, on his rights under any compromise or settlement arrived at in connection with that matter to avoid or bring to an end any proceedings;
but subject to any charge imposed by section 25 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and any provision in, or made under, Part I of that Act for the payment of any sum to the Lord Chancellor.
(6) References in this section to a solicitor include the Treasury Solicitor.
(1) The Secretary of State may by order provide that, where there are in a dwelling-house let on a secure tenancy one or more interest to which this section applies, this Part and Part IV (secure tenancies) have effect with such modifications as are specified in the order.
(2) This section applies to an interest held by—
a local authority,
a new town corporation,
a housing action trust
an urban development corporation,
a Mayoral development corporation,
. . .
the Regulator of Social Housing or Scottish Homes, a non-profit registered provider of social housing or
a registered social landlord,
which is immediately superior to the interest of the landlord or to another interest to which this section applies.
(3) An order under this section—
(a) may make different provision with respect to different cases or descriptions of case;
(b) may contain such consequential, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient; and
(c) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) The provisions of this Part continue to apply where a person ceases to be a secure tenant of a dwelling-house by reason of the disposal by the landlord of an interest in the dwelling-house in England to a person who is not an authority or body within section 80 (the landlord condition for secure tenancies).
(2) In the following provisions of this Part—
(a) references to the preservation of the right to buy and to a person having the preserved right to buy are to the continued application of the provisions of this Part by virtue of this section and to a person in relation to whom those provisions so apply;
(b) “ qualifying disposal ” means a disposal in relation to which this section applies, and
(c) “ former secure tenant ” and the “ former landlord ” are the persons mentioned in subsection (1).
(3) This section does not apply—
(a) where the former landlord was a person against whom the right to buy could not be exercised by virtue of paragraph 1, 2 or 3 of Schedule 5 (charities and certain housing associations), or
(b) in such other cases as may be excepted from the operation of this section by order of the Secretary of State.
(4) Orders under subsection (3)( b )—
(a) may relate to particular disposals and 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.
171B Extent of preserved right: qualifying persons and dwelling-houses.
(1) A person to whom this section applies has the preserved right to buy a relevant dwelling-house in England so long as he occupies the relevant dwelling-house as his only or principal home, subject to the following provisions of this Part.
(1A) A person to whom this section applies ceases to have the preserved right to buy if the tenancy of a relevant dwelling-house becomes a demoted tenancy by virtue of a demotion order under section 6A of the Housing Act 1988.
(2) References in this Part to a “qualifying person” and “qualifying dwelling-house”, in relation to the preserved right to buy, are to a person who has that right and to a dwelling-house in relation to which a person has that right.
(3) The following are the persons to whom this section applies—
(a) the former secure tenant, or in the case of a joint tenancy, each of them;
(b) a qualifying successor as defined in subsection (4); and
(c) a person to whom a tenancy of a dwelling-house is granted jointly with a person who has the preserved right to buy in relation to that dwelling-house.
(4) The following are qualifying successors for this purpose—
(a) where the former secure tenancy was not a joint tenancy and, immediately before his death, the former secure tenant was tenant under an assured tenancy of a dwelling-house in relation to which he had the preserved right to buy, a member of the former secure tenant’s family who acquired that assured tenancy under the will or intestacy of the former secure tenant or in whom that assured tenancy vested under section 17 of the Housing Act 1988 (statutory succession to assured tenancy);
(aa) where the former secure tenancy was not a joint tenancy, a member of the former secure tenant’s family to whom the former secure tenant assigned his assured tenancy of a dwelling-house in relation to which, immediately before the assignment, he had the preserved right to buy
(b) a person who becomes the tenant of a dwelling-house in pursuance of—
(i) a property adjustment order undersection 23A or 24 of the Matrimonial Causes Act 1973, or
(ii) an order under Schedule 1 to the Matrimonial Homes Act 1983 or Schedule 7 to the Family Law Act 1996 transferring the tenancy, or
(iii) a property adjustment order under section 17(1) of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders after overseas divorce, &c.), or
(iv) an order under paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents), or
(v) an order under Part 2 of Schedule 5, or a property adjustment order under 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.),
in place of a person who had the preserved right to buy in relation to that dwelling-house.
(5) The relevant dwelling-house is in the first instance—
(a) in relation to a person within paragraph (a) subsection (3), the dwelling-house which was the subject of the qualifying disposal;
(b) in relation to a person within paragraph (b) of that subsection, the dwelling-house of which he became the statutory tenant or tenant as mentioned in subsection (4);
(c) in relation to a person within paragraph (c) of subsection (3), the dwelling-house of which he became a joint tenant as mentioned in that paragraph.
(6) If a person having the preserved right to buy becomes the tenant of another dwelling-house in England in place of the relevant dwelling-house (whether the new dwelling-house is entirely different or partly or substantially the same as the previous dwelling-house) and the landlord is the same person as the landlord of the previous dwelling-house or, where that landlord was a company, is a connected company, the new dwelling-house becomes the relevant dwelling-house for the purposes of the preserved right to buy.
For this purpose “ connected company ” means a subsidiary or holding company within the meaning of section 1159 of the Companies Act 2006.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
171C Modifications of this Part in relation to preserved right.
(1) Where the right to buy is preserved, the provisions of this Part have effect subject to such exceptions, adaptations and other modifications as may be prescribed by regulations made by the Secretary of State.
(2) The regulations may in particular provide—
(a) that paragraphs 1, 3 and 5 to 11 of Schedule 5 (certain exceptions to the right to buy) do not apply;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) that the provisions of this Part relating to the right to acquire on rent to mortgage terms do not apply; and
(d) that the landlord is not required to but may include a covenant for the repayment of discount, provided its terms are no more onerous than those of the covenant provided for in section 155.
(3) The prescribed exceptions, adaptations and other modifications shall take the form of textual amendments of the provisions of this Part as they apply in cases where the right to buy is preserved; and the first regulations, and any subsequent consolidating regulations, shall set out the provisions of this Part as they so apply.
(4) The regulations—
(a) may make different provision for different cases or descriptions of case, including different provision for different areas,
(b) may contain such incidental, supplementary and transitional provisions as the Secretary of State considers appropriate, 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) The disapplication by the regulations of paragraph 1 of Schedule 5 shall not be taken to authorise any action on the part of a charity which would conflict with the trusts of the charity.
171D Subsequent dealings: disposal of landlord’s interest in qualifying dwelling-house.
(1) The disposal by the landlord of an interest in the qualifying dwelling-house, whether his whole interest or a lesser interest, does not affect the preserved right to buy, unless—
(a) as a result of the disposal an authority or body within section 80(1) (the landlord condition for secure tenancies) becomes the landlord of the qualifying person or persons, or
(b) paragraph 6 of Schedule 9A applies (effect of failure to register entry protecting preserved right to buy),
in which case the right to buy ceases to be preserved.
(2) The disposal by the landlord of a qualifying dwelling-house of less than his whole interest as landlord of the dwelling-house, or in part of it, requires the consent of the Secretary of State, unless the disposal is to the qualifying person or persons.
(2ZA) Subsection (2) does not apply to a disposal of land by a private registered provider of social housing or by a registered social landlord.
(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Consent may be given in relation to a particular disposal or generally in relation to disposals of a particular description and may, in either case, be given subject to conditions.
(4) A disposal made without the consent required by subsection (2) is void, except in a case where, by reason of a failure to make the entries on the land register or land charges register required by Schedule 9A, the preserved right to buy does not bind the person to whom the disposal is made.