|
| |
|
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 (as |
| |
determined in accordance with regulations under section 36A).” |
| |
(2) | In section 33(2) of the Housing Act 1985 (c. 68) (covenants and conditions |
| 5 |
which may be imposed), after “But” insert “, subject to sections 36A and 37,”. |
| |
(3) | In section 37(1) of that Act (restriction on disposal of dwelling-houses in |
| |
National Parks etc.), after “restriction on assignment)” insert “or a covenant as |
| |
mentioned in section 36A(3) (right of first refusal for local authority)”. |
| |
(4) | In section 41 of that Act (exempted disposals which end liability under |
| 10 |
covenants), after paragraph (a) insert— |
| |
“(aa) | the covenant required by section 36A (right of first refusal for |
| |
local authority) 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, |
| 15 |
| |
(5) | The amendments made by this section do not apply in relation to a disposal |
| |
under section 32 of that Act if— |
| |
(a) | the purchaser has accepted an offer for the disposal of the house from |
| |
| 20 |
(b) | the authority has accepted an offer for the disposal of the house from |
| |
| |
| before the day on which this section comes into force. |
| |
171 | Deferred resale agreements |
| |
(1) | After section 39 of the Housing Act 1985 (c. 68) insert— |
| 25 |
| “39A Treatment of deferred resale agreements for purposes of section 35 |
| |
(1) | If a purchaser or his successor in title enters into an agreement within |
| |
subsection (3), any liability arising under the covenant required by |
| |
section 35 shall be determined as if a relevant disposal which is not an |
| |
exempted disposal had occurred at the appropriate time. |
| 30 |
(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 |
| 35 |
purchaser or his successor in title and any other person— |
| |
(a) | which is made (expressly or impliedly) in contemplation of, or |
| |
in connection with, a disposal to be made, or made, under |
| |
| |
(b) | which is made before the end of the discount repayment period, |
| 40 |
| |
(c) | under which a relevant disposal (other than an exempted |
| |
disposal) is or may be required to be made to any person after |
| |
| |
(4) | Such an agreement is within subsection (3)— |
| 45 |
|
| |
|
| |
|
(a) | whether or not the date on which the relevant disposal is to take |
| |
place is specified in the agreement, and |
| |
(b) | whether or not any requirement to make that disposal is or may |
| |
be made subject to the fulfilment of any condition. |
| |
(5) | The Secretary of State may by order provide— |
| 5 |
(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)— |
| 10 |
(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 |
| |
| 15 |
| |
| “agreement” includes arrangement; |
| |
| “the discount repayment period” means the period of 3 years that |
| |
applies for the purposes of section 35(2) or the period of five |
| |
years that applies for the purposes of section 35(3) (depending |
| 20 |
on whether an offer such as is mentioned in section 168(4) of the |
| |
Housing Act 2004 was made before or on or after the coming |
| |
into force of that section).” |
| |
(2) | The amendment made by this section does not apply in relation to any |
| |
agreement or arrangement made before the the day on which this section |
| 25 |
| |
Disposals by registered social landlords |
| |
172 | Repayment of discount: periods and amounts payable |
| |
(1) | For section 11 of the Housing Act 1996 (c. 52) substitute— |
| |
“11 | Covenant for repayment of discount on disposal |
| 30 |
(1) | Where on a disposal of a house by a registered social landlord, in |
| |
accordance with a consent given by the Relevant Authority under |
| |
section 9, a discount has been given to the purchaser, and the consent |
| |
does not provide otherwise, the conveyance, grant or assignment shall |
| |
contain a covenant binding on the purchaser and his successors in title |
| 35 |
| |
(2) | The covenant shall be to pay to the landlord such sum (if any) as the |
| |
landlord may demand in accordance with subsection (3) on the |
| |
occasion of the first relevant disposal which is not an exempted |
| |
disposal and which takes place within the period of five years |
| 40 |
beginning with the conveyance, grant or assignment. |
| |
(3) | The landlord may demand such sum as he considers appropriate, up to |
| |
and including the maximum amount specified in this section. |
| |
|
| |
|
| |
|
(4) | 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 percentage discount given to the purchaser in |
| |
respect of the disposal of the house by the landlord. |
| |
(5) | But for each complete year which has elapsed after the conveyance, |
| 5 |
grant or assignment and before the first relevant disposal the maximum |
| |
amount which may be demanded by the landlord is reduced by one- |
| |
| |
(6) | Subsections (3) to (5) are subject to section 11A. |
| |
| 11A Increase in value of house attributable to home improvements to be |
| 10 |
| |
(1) | In calculating the maximum amount which may be demanded by the |
| |
landlord under section 11, such amount (if any) of the price or premium |
| |
paid for the first relevant disposal which is attributable to |
| |
improvements made to the house— |
| 15 |
(a) | by the person by whom the disposal is, or is to be, made, and |
| |
(b) | after the conveyance, grant or assignment and before the |
| |
| |
| |
(2) | The amount to be disregarded under this section shall be such amount |
| 20 |
as may be agreed between the parties or determined by the district |
| |
| |
(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 |
| 25 |
(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. |
| 30 |
| 11B Liability to repay is a charge on the house |
| |
(1) | The liability that may arise under the covenant required by section 11 |
| |
is a charge on the house, taking effect as if it had been created by deed |
| |
expressed to be by way of legal mortgage. |
| |
(2) | Where there is a relevant disposal which is an exempted disposal by |
| 35 |
virtue of section 15(4)(d) or (e) (compulsory disposal or disposal of |
| |
| |
(a) | the covenant required by section 11 is not binding on the person |
| |
to whom the disposal is made or any successor in title of his, |
| |
| 40 |
(b) | the covenant and the charge taking effect by virtue of this |
| |
section cease to apply in relation to the property disposed of.” |
| |
(2) | In section 12, for “section 11” in each place where it occurs substitute “section |
| |
| |
(3) | The amendments made by this section do not apply in any case where— |
| 45 |
|
| |
|
| |
|
(a) | the purchaser has accepted an offer for the disposal of the house from |
| |
| |
(b) | the landlord has accepted an offer for the disposal of the house from the |
| |
| |
| before the day on which this section comes into force. |
| 5 |
(4) | Subsection (5), however, applies in any such case if the first relevant disposal |
| |
by the purchaser to which the covenant for repayment of discount applies |
| |
takes place on or after the day on which this section comes into force. |
| |
(5) | In the following provisions— |
| |
(a) | section 11(2) of the Housing Act 1996 (c. 52) (as it has effect without the |
| 10 |
amendments made by this section), and |
| |
(b) | any covenant for repayment of discount, |
| |
| any reference (however expressed) to a person being liable to pay an amount |
| |
to the landlord on demand is to be read as a reference to his being liable to pay |
| |
to the landlord so much of that amount (if any) as the landlord may demand. |
| 15 |
(6) | In subsections (4) and (5) “covenant for repayment of discount” means the |
| |
covenant contained in a conveyance, grant or assignment in accordance with |
| |
| |
173 | Registered social landlord’s right of first refusal |
| |
(1) | After section 12 of the Housing Act 1996 insert— |
| 20 |
| “12A Right of first refusal for registered social landlord |
| |
(1) | Where on a disposal of a house by a registered social landlord, in |
| |
accordance with a consent given by the Relevant Authority under |
| |
section 9, a discount has been given to the purchaser, and the consent |
| |
does not provide otherwise, the conveyance, grant or assignment shall |
| 25 |
contain the following covenant, which shall be binding on the |
| |
purchaser and his successors in title. |
| |
(2) | The covenant shall be to the effect that, until the end of the period of ten |
| |
years beginning with the conveyance, grant or assignment, there will |
| |
be no relevant disposal which is not an exempted disposal, unless the |
| 30 |
prescribed conditions have been satisfied in relation to that or a |
| |
| |
(3) | In subsection (2) “the prescribed conditions” means such conditions as |
| |
are prescribed by regulations under this section at the time when the |
| |
conveyance, grant or assignment is made. |
| 35 |
(4) | The Secretary of State may by regulations prescribe such conditions as |
| |
he considers appropriate for and in connection with conferring on— |
| |
(a) | a registered social landlord which has made a disposal as |
| |
mentioned in subsection (1), or |
| |
(b) | such other person as is determined in accordance with the |
| 40 |
| |
| a right of first refusal to have a disposal within subsection (5) made to |
| |
him for such consideration as is mentioned in section 12B. |
| |
(5) | The disposals within this subsection are— |
| |
(a) | a reconveyance or conveyance of the house; and |
| 45 |
|
| |
|
| |
|
(b) | a surrender or assignment of the lease. |
| |
(6) | Regulations under this section may, in particular, make provision— |
| |
(a) | for the purchaser 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 |
| 5 |
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 |
| 10 |
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 |
| |
purchaser and any other prescribed person; |
| |
(e) | for authorising a nominated person to accept the offer and for |
| 15 |
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 |
| 20 |
(whether following the service of a notice to complete or |
| |
otherwise) with the result that the purchaser is able to make a |
| |
disposal on the open market; |
| |
(h) | for the manner in which any offer, acceptance or notification is |
| |
| 25 |
(7) | In subsection (6) any reference to the purchaser is a reference to the |
| |
purchaser or his successor in title. |
| |
| Nothing in that subsection affects the generality of subsection (4). |
| |
(8) | Regulations under this section— |
| |
(a) | may make different provision with respect to different cases or |
| 30 |
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 |
| |
| |
(9) | A disposal in breach of the covenant mentioned in subsection (2) shall |
| 35 |
| |
(10) | Where there is a relevant disposal which is an exempted disposal by |
| |
virtue of section 15(4)(d) or (e) (compulsory disposal or disposal of |
| |
| |
(a) | the covenant required by this section is not binding on the |
| 40 |
person to whom the disposal is made or any successor in title of |
| |
| |
(b) | the covenant ceases to apply in relation to the property |
| |
| |
12B | Consideration payable for disposal under section 12A |
| 45 |
(1) | The consideration for a disposal made in respect of a right of first |
| |
refusal as mentioned in section 12A(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 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 |
| 5 |
sold on the open market by a willing vendor, on the assumption that |
| |
any liability under the covenant required by section 11 (repayment of |
| |
discount on early disposal) would be discharged by the vendor. |
| |
(3) | If the offer is accepted in accordance with regulations under section |
| |
12A, no payment shall be required in pursuance of any such covenant |
| 10 |
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 |
| |
| 15 |
(4) | Where there is a charge on the 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 (as |
| 20 |
determined in accordance with regulations under section 12A).” |
| |
(2) | In section 13(1) of the Housing Act 1996 (c. 52) (restriction on disposal of |
| |
houses in National Parks, &c), after “restriction on assignment)” insert “or a |
| |
covenant as mentioned in section 12A(2) of this Act (right of first refusal for |
| |
registered social landlord)”. |
| 25 |
(3) | The amendments made by this section do not apply in relation to a disposal |
| |
under section 8 of that Act if— |
| |
(a) | the purchaser has accepted an offer for the disposal of the house from |
| |
| |
(b) | the landlord has accepted an offer for the disposal of the house from the |
| 30 |
| |
| before the day on which this section comes into force. |
| |
174 | Deferred resale agreements |
| |
(1) | After section 15 of the Housing Act 1996 insert— |
| |
| “15A Treatment of deferred resale agreements for purposes of section 11 |
| 35 |
(1) | If a purchaser or his successor in title enters into an agreement within |
| |
subsection (3), any liability arising under the covenant required by |
| |
section 11 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— |
| 40 |
(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 |
| |
purchaser or his successor in title and any other person— |
| 45 |
|
| |
|
| |
|
(a) | which is made (expressly or impliedly) in contemplation of, or |
| |
in connection with, a disposal to be made, or made, by virtue of |
| |
| |
(b) | which is made before the end of the discount repayment period, |
| |
| 5 |
(c) | under which a relevant disposal which is not an exempted |
| |
disposal is or may be required to be made to any person after |
| |
| |
(4) | Such an agreement is within subsection (3)— |
| |
(a) | whether or not the date on which the relevant disposal is to take |
| 10 |
place is specified in the agreement, and |
| |
(b) | whether or not any requirement to make that 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 |
| 15 |
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 |
| 20 |
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 |
| |
| |
| 25 |
| “agreement” includes arrangement; |
| |
| “the discount repayment period” means the period of three or five |
| |
years that applies for the purposes of section 11(2) (depending |
| |
on whether an offer such as is mentioned in section 172(3) of the |
| |
Housing Act 2004 was made before or on or after the coming |
| 30 |
into force of that section).” |
| |
(2) | The amendment made by this section does not apply in relation to any |
| |
agreement or arrangement made before the day on which this section comes |
| |
| |
Disposals by housing action trusts |
| 35 |
175 | Repayment of discount: periods and amounts payable |
| |
(1) | Schedule 11 to the Housing Act 1988 (c. 50) (provisions applicable to certain |
| |
disposals of houses) is amended as follows. |
| |
(2) | In paragraph 1(2) for the words from “to pay to the housing action trust” to the |
| |
end of the sub-paragraph substitute “to the following effect.” |
| 40 |
(3) | After paragraph 1(2) insert— |
| |
“(3) | The covenant shall be to pay to the housing action trust such sum (if |
| |
any) as the trust may demand in accordance with sub-paragraph (4) |
| |
on the occasion of the first relevant disposal (other than an exempted |
| |
|
| |
|