Housing (Scotland) Act 2006

Part 7 S Repayment charges

172 Repayment charges S

(1) A local authority entitled to recover a sum under section 59(1) or (2)[F1 , section 61(3A), subsection (6A) below] or paragraph 6(1) of schedule 5 may make in favour of itself a charge (a “repayment charge”)—

(a) specifying the repayable amount and the living accommodation concerned, and

(b) providing that the living accommodation concerned is charged with the repayable amount.

(2) The repayable amount is the lowest of—

(a) the amount recoverable under section 59(1) or (2) or paragraph 6(1) of schedule 5,

(b) any lower amount determined by the local authority, and

(c) any amount which the Scottish Ministers by order prescribe as the maximum repayable amount.

(3) The repayable amount is recoverable in 30 equal annual instalments payable on the same date (specified in the charge) in each calendar year.

(4) The local authority must register a repayment charge in the appropriate land register.

(5) The owner of, or any other person interested in, any living accommodation subject to a repayment charge may at any time redeem the repayable amount early by paying to the local authority—

(a) such sum as the owner or other person may agree with the local authority, or

(b) failing such agreement, such sum as the Scottish Ministers may determine.

(6) The local authority must, on receiving—

(a) payment of the repayable amount in accordance with the repayment charge, or

(b) a sum redeeming the repayable amount under subsection (5),

register a discharge of the repayment charge in the appropriate land register.

[F2 (6A) A local authority may recover—

(a) the amount of any fee payable in respect of registering a repayment charge or a discharge of such a charge,

(b) any administrative expenses incurred by it in connection with the registration, and

(c) interest, at such reasonable rate as it may determine, from the date when a demand for payment is served until the whole amount is paid,

from the owner of the living accommodation concerned.]

(7) Where a repayment charge is made in respect of expenses incurred by a local authority in demolishing a house, references in this section and in section 173 to living accommodation are to be read as references to the site of the demolished house.

(8) This section does not apply in relation to—

(a) the recovery of sums under section 59(2) from a landlord who is not the owner of the living accommodation concerned,

(b) living accommodation which is not a building.

Textual Amendments

F1 Words in s. 172(1) inserted (1.3.2011) by Housing (Scotland) Act 2010 (asp 17), ss. 150(4)(a), 166(2); S.S.I. 2011/96, art. 2, Sch.

F2 S. 172(6A) inserted (1.3.2011) by Housing (Scotland) Act 2010 (asp 17), ss. 150(4)(b), 166(2); S.S.I. 2011/96, art. 2, Sch.

173 Effect of registering repayment charges etc. S

(1) A registered repayment charge is conclusive evidence that the charge specified in it has been created in respect of the living accommodation specified in it.

(2) A registered repayment charge constitutes a charge on the living accommodation specified in it and has priority over—

(a) all future burdens and incumbrances on the same living accommodation, and

(b) all existing burdens and incumbrances on the same living accommodation except any charges created or arising under—

F3 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) any local Act authorising a charge for recovery of expenses incurred by a local authority,

(iii) Schedule 9 of the 1987 Act,

(iv) section 172, or

(v) any Act authorising advances of public money.

(3) A registered repayment charge is enforceable at the instance of the local authority against any person deriving title to the charged living accommodation.

(4) But it is not enforceable against—

(a) a third party who acquires right to the charged living accommodation (whether title has been completed or not) in good faith and for value before the repayment charge is registered, or

(b) any person deriving title from such third party.

(5) A registered discharge of a repayment charge is conclusive evidence that the charge concerned has been discharged.

Textual Amendments

F3 S. 173(2)(b)(i) repealed (1.10.2009) by Public Health etc. (Scotland) Act 2008 (asp 5), s. 128(2), Sch. 3 Pt. 1 (with s. 127); S.S.I. 2009/319, art. 2(a), Sch. 1

174 Repayment charges: further provision S

The Scottish Ministers may by order—

(a) specify the form which a repayment charge, or a discharge of a repayment charge, must be in,

(b) make such further provision as they think fit about the repayment or early redemption of amounts repayable under a repayment charge.

[F4 174A Repayment charges: registered social landlords S

(1) The Scottish Ministers may by regulations make provision allowing a registered social landlord to make in favour of itself a charge to recover a sum which—

(a) the registered social landlord is entitled to recover from an owner of a flat in a tenement, and

(b) represents the owner's share of scheme costs as determined in accordance with section 4A(3) of the 2004 Act.

(2) Regulations under subsection (1) may, in particular—

(a) apply (with or without modifications), or make provision similar to, any provision of or made under this Part,

(b) prescribe conditions which must apply before a charge can be made in relation to a sum mentioned in subsection (1), including conditions relating to—

(i) the registered social landlord which may make a charge,

(ii) the circumstances leading to the sum becoming recoverable by the registered social landlord,

(c) modify the Tenement Management Scheme or its operation,

(d) make provision about rights of appeal which apply in relation to—

(i) the decision to impose a charge,

(ii) the terms of the charge.

(3) Before making regulations under subsection (1), the Scottish Ministers must consult—

(a) such bodies representing local authorities,

(b) such bodies representing registered social landlords,

(c) such other persons,

as they think fit.

(4) Regulations under subsection (1) may modify any enactment (including this Act).

(5) In this section—

• “ owner of a flat in a tenement ” is to be construed in accordance with the definition of “owner” in section 28 of the 2004 Act,

• “ registered social landlord ” means a body registered in the register maintained under section 20(1) of the Housing (Scotland) Act 2010 (asp 17),

• “ Tenement Management Scheme ” has the same meaning as in the 2004 Act, and

• “ the 2004 Act ” means the Tenements (Scotland) Act 2004 (asp 11). ]

Textual Amendments

F4 S. 174A inserted (20.11.2014) by Housing (Scotland) Act 2014 (asp 14), ss. 85(3), 104(3); S.S.I. 2014/264, art. 2, Sch.