Housing Act 1985

450 Modifications of building society law.

(1) The following provisions apply with respect to an advance by a building society which is partly financed under section 445 (assistance for first-time buyers) or the corresponding Scottish or Northern Ireland provisions—

(a) so much of the advance as is so financed shall be treated as not forming part of the advance for the purpose of determining whether the advance, or any further advance made within two years of the date of purchase, is beyond the powers of the society.

(b) the society, in complying with section 28(3) of the [1962 c. 37.] Building Societies Act 1962 (statutory notice to borrower where security taken from third party), shall state the amount of the basic advance without including the amount so financed, and

(c) section 41 of the [1962 c. 37.] Building Societies Act 1962 (statutory provisions to be set out in society’s acknowledgement of loan) does not apply to an acknowledgement for such an advance.

(2) The following provisions apply with respect to an undertaking of indemnity under section 449(3) or the corresponding Scottish or Northern Ireland provisions—

(a) the undertaking shall not be treated for any purpose of the Building Societies Act 1962 as additional security for the advance, and

(b) section 28 of the Building Societies Act 1962 (statutory notice to borrower where security taken from third party) does not apply by reason only of such an undertaking having been given.