Q&As

A property adjustment order has been made in relation to a property purchased under the ‘right to buy’ provisions of the Housing Act 1985 (HA 1985). The property is subject to a charge that provides for the repayment of the discount applied under the right to buy scheme. In such circumstances, will the landlord have a right of first refusal (per HA 1985, s 156A) or will the property adjustment order mean that it is an exempted disposal (per HA 1985, s 160)? Will the discount still be repayable (per HA 1985, s 155)?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 27/08/2019

The following Family Q&A Produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A property adjustment order has been made in relation to a property purchased under the ‘right to buy’ provisions of the Housing Act 1985 (HA 1985). The property is subject to a charge that provides for the repayment of the discount applied under the right to buy scheme. In such circumstances, will the landlord have a right of first refusal (per HA 1985, s 156A) or will the property adjustment order mean that it is an exempted disposal (per HA 1985, s 160)? Will the discount still be repayable (per HA 1985, s 155)?

Part V of the Housing Act 1985 (HA 1985) contains provisions relating to the right to buy. This provides that a secure tenant of a dwelling-house in England has the right in specified circumstances to acquire the interest of the landlord (whether freehold or leasehold) in the property that they occupy. There is a statutory formula for determining the value of the dwelling-house and a discount applied to the purchase price.

HA 1985, s 155 makes provision for repayment of the discount provided when the right to buy is exercised in cases of early disposal. This repayment is secured by a mandatory covenant binding on the secure tenant and their successors to pay such sum as the landlord may demand on the occasion of a first relevant disposal, other than an exempted disposal, w

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