[F1SCHEDULE 4AE+W Exclusion of Certain Shared Ownership Leases
Textual Amendments
F1Schedule 4A inserted by Housing and Planning Act 1986 (c. 63, SIF 75:1), s. 18, Sch. 4 para. 6
Leases granted in pursuance of right to be granted a shared ownership leaseE+W
1E+WA lease granted in pursuance of the right to be granted a shared ownership lease under Part V of the Housing Act M1 1985 is excluded from the operation of this Part of this Act.
Certain leases granted by certain public authoritiesE+W
F22(1)A lease which—
(a)was granted at a premium by a body mentioned in sub-paragraph (2), and
(b)complies with the conditions set out in sub-paragraph (3),
is excluded from the operation of this Part at any time when the interest of the landlord belongs to such a body [F3or to a person who acquired that interest in exercise of the right conferred by Part IV of the Housing Act 1988].
(2)The bodies are—
(a)a county, [F4county borough,] district or London borough council, the Common Council of the City of London or the Council of the Isles of Scilly;
(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5 a joint authority established by Part IV of the Local Government Act M21985;
[F6(bb)the London Fire and Emergency Planning Authority;]
(c)the Commission for the New Towns or a development corporation established by an order made, or having effect as made, under the New Towns Act M31981;
(d)an urban development corporation within the meaning of Part XVI of the Local Government, Planning and Land Act M41980;
F7(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F8(f)a housing action trust established under Part III of the Housing Act 1988]
(3)The conditions are that the lease–
(a)provides for the tenant to acquire the freehold for a consideration which is to be calculated in accordance with the lease and which is reasonable, having regard to the premium or premiums paid by the tenant under the lease, and
(b)states the landlord’s opinion that by virtue of this paragraph the tenancy will be excluded from the operation of this Part of this Act at any time when the interest of the landlord belongs to a body mentioned in sub-paragraph (2) above.
(4)If, in proceedings in which it falls to be determined whether a lease complies with the condition in sub-paragraph (3)(a), the question arises whether the consideration payable by the tenant on acquiring the freehold is reasonable, it is for the landlord to show that it is.
Textual Amendments
F2Sch. 4A para. 2 extended (5.7.1994) by 1994 c. 19, ss. 39, 66(2)(b), Sch. 13 para. 24(c) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2))
F3Words added by Housing Act 1988 (c. 50, SIF 61), s. 140, Sch. 17 para. 17(1)
F4Words in Sch. 4A para. 2(2)(a) inserted (1.4.1996) by 1994 c. 19, s. 22(2), Sch. 8 para. 1(2) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2)); S.I. 1996/396, art. 3 Sch. 1
F5Words repealed by Education Reform Act 1988 (c. 40, SIF 41:1), ss. 231(7), 235(6), 237, Sch. 13 Pt. I
F6Sch. 4A para. 2(bb) inserted (3.7.2000) by 1999 c. 29, s. 328(8), Sch. 29 Pt. I para. 9 (with Sch. 12 para. 9(1)); S.I. 2000/1094, art. 4(a)(h)
F7Sch. 4A para. 2(2)(e) repealed (1.10.1998) by 1998 c. 38, s. 152, Sch. 18 Pt. IV (with ss. 137(1), 139(2),141(1), 143(2)); S.I. 1998/2244, art. 4
Marginal Citations
Certain leases granted by housing associationsE+W
3(1)A lease granted by a housing association and which complies with the conditions set out in sub-paragraph (2) is excluded from the operation of this Part of this Act, whether or not the interest of the landlord still belongs to such an association.
(2)The conditions are that the lease—
(a)was granted for a term of 99 years or more and is not (and cannot become) terminable except in pursuance of a provision for re-entry or forfeiture;
(b)was granted at a premium, calculated by reference to the value of the house or the cost of providing it, of not less than 25 per cent., or such other percentage as may be prescribed, of the figure by reference to which it was calculated;
(c)provides for the tenant to acquire additional shares in the house on terms specified in the lease and complying with such requirements as may be prescribed;
(d)does not restrict the tenant’s powers to assign, mortgage or charge his interest in the house;
(e)if it enables the landlord to require payment for outstanding shares in the house, does so only in such circumstances as may be prescribed;
(f)provides for the tenant to acquire the landlord’s interest on terms specified in the lease and complying with such requirements as may be prescribed; and
(g)states the landlord’s opinion that by virtue of this paragraph the lease is excluded from the operation of this Part of this Act.
(3)In any proceedings the court may, if of the opinion that it is just and equitable to do so, treat a lease as satisfying the conditions in sub-paragraph (2) notwithstanding that the condition specified in paragraph (g) of that sub-paragraph is not satisfied.
(4)In this paragraph “housing association” has the same meaning as in the Housing Associations Act M51985.
4(1)A lease for the elderly granted by a [F9registered housing association] and which complies with the conditions set out in sub-paragraph (2) is excluded from the operation of this Part of this Act at any time when the interest of the landlord belongs to [F10a registered social landlord].E+W
(2)The conditions are that the lease—
(a)is granted at a premium which is calculated by reference to a percentage of the value of the house or of the cost of providing it,
(b)complies, at the time when it is granted, with such requirements as may be prescribed, and
(c)states the landlord’s opinion that by virtue of this paragraph the lease will be excluded from the operation of this Part of this Act at any time when the interest of the landlord belongs to a [F11registered social landlord].
(3)In this paragraph—
“lease for the elderly” has such meaning as may be prescribed; and
[F12“registered social landlord” has the same meaning as in the Housing Act 1985 (see section 5(4) and (5) of that Act)].
Textual Amendments
F9Words in Sch. 4A para. 4(1) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 1(1)(2)(a)
F10Words in Sch. 4A para. 4(1) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 1(1)(2)(b)
F11Words in Sch. 4A para. 4(2)(c) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 1(1)(3)
F12Definition in Sch. 4A para. 4(3) substituted (1.10.1996) by S.I. 1996/2325, art. 5(1), Sch. 2 para. 1(1)(4)
Power to prescribe matters by regulationsE+W
5(1)The Secretary of State may by regulations prescribe anything requiring to be prescribed for the purposes of this Schedule.E+W
(2)The regulations may—
(a)make different provision for different cases or descriptions of case, including different provision for different areas, and
(b)contain such incidental, supplementary or transitional provisions as the Secretary of State considers appropriate,
and shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
InterpretationE+W
6E+WIn this Schedule “lease” means a lease at law or in equity, and references to the grant of a lease shall be construed accordingly.]