- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Pwynt Penodol mewn Amser (01/02/1991)
- Gwreiddiol (Fel y'i Deddfwyd)
Version Superseded: 01/04/1993
Point in time view as at 01/02/1991.
Housing Act 1985, SCHEDULE 8 is up to date with all changes known to be in force on or before 19 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Section 151.
1(1)The lease shall state the tenant’s initial share of the dwelling-house and shall contain provision enabling the tenant to acquire additional shares in the dwelling-house, which shall be either the prescribed percentage (within the meaning of section 145) or a multiple of that percentage.
(2)The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord, stating the additional share he proposes to acquire.
(3)Where the tenant claims to exercise the right to acquire an additional share, the landlord shall, as soon as practicable, serve on the tenant a written notice stating—
(a)the amount which in the opinion of the landlord should be the amount of the consideration for that share on the assumption that the share is as stated in the tenant’s notice, and
(b)the effective discount on an acquisition of that share,
determined in each case, in accordance with paragraph 3(1).
(4)A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.
2(1)Where the dwelling-house is a house and the landlord owns the freehold, the lease shall provide that, on his acquiring an additional share such that his total share will be 100 per cent., the tenant is entitled to require the freehold to be conveyed either to himself or to such other person as he may direct.
(2)The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord.
(3)As soon as practicable after the right mentioned in sub-paragraph (1) has become exercisable, the landlord shall serve on the tenant a written notice—
(a)informing him of the right, and
(b)stating the provisions which, in the opinion of the landlord, should be contained in the conveyance.
(4)A conveyance executed in pursuance of that right—
(a)shall conform with Parts I and II of Schedule 6 (terms of conveyance in pursuance of right to buy), and
(b)shall preserve the effect of the covenant required by section 155 (repayment of discount on early disposal), and
(c)where the lease contains any such covenant as is mentioned in section 157 (restriction on disposal of dwelling-houses in National Parks, etc.), shall preserve the effect of that covenant;
and Part IV of Schedule 6 (charges) applies to such a conveyance as it applies to a conveyance of the freehold in pursuance of the right to buy.
(5)A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.
3(1)The consideration for an additional share (referred to in this Part as an “additional contribution”) shall be determined by the formula—
and the effective discount to which the tenant is entitled on the acquisition of an additional share shall be determined by the formula—
where—
C = the additional contribution,
E = the effective discount,
S = the additional share expressed as a percentage,
V = the value of the dwelling-house (determined in accordance with paragraph 11) at the time when the notice under paragraph 1 is served, and
D = the discount which on the assumptions stated in sub-paragraph (2) below would be applicable under sections 129 to 131 (discount on exercise of right to buy).
(2)The assumptions are that—
(a)the shared ownership lease had not been granted and the secure tenancy had not come to an end, and
(b)the tenant was exercising the right to buy and his notice under paragraph 1 was a notice claiming to exercise that right.
4(1)The lease shall provide that, for any period for which the tenant’s total share is less than 100 per cent., the rent payable under the lease shall be determined by the formula—
where—
R=the rent payable,
F=the amount determined by the landlord as the rent which would be payable for that period if the shared ownership lease had not been granted and the secure tenancy had not come to an end, but excluding any element attributable to rates or to services provided by the landlord, and
S=the tenant’s total share expressed as a percentage.
(2)In making a determination under sub-paragraph (1) the landlord shall take into account all matters which appear to it to be relevant including, in particular, where comparable dwelling-houses in the locality are let on secure tenancies, the rents payable under those tenancies.
(3)The lease shall also provide that, for any such period, if the Secretary of State by order so provides—
(a)the rent payable under the lease as so determined, or
(b)any amount payable by the tenant under the lease which is payable, directly or indirectly, for repairs, maintenance, or insurance,
shall be adjusted in such manner as may be provided by the order.
(4)The Secretary of State may by order under sub-paragraph (3) provide for such adjustment as he considers appropriate having regard to the differing reponsibilities for repairs, maintenance and insurance of a tenant under a shared ownership lease and a secure tenant.
(5)An order under this paragraph—
(a)may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and
(b)may contain such transitional provisions as appear to the Secretary of State to be necessary or expedient,
and shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(6)In this paragraph “rates” includes charges [F1in respect of any services provided by a water undertaker or sewerage undertaker in the course of the carrying out of its functions].
Textual Amendments
F1Words substituted by Water Act 1989 (c. 15, SIF 130), ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190(1), 193(1), Sch. 25 para. 74(2), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58
5The lease shall provide that, for any period for which the tenant’s total share is 100 per cent., the rent payable under the lease shall be £10 per annum.
6(1)The lease shall contain a covenant binding on the tenant and his successors in title to pay to the landlord on demand for the outstanding share an amount determined in accordance with sub-paragraph (2) if, at a time when the tenant’s total share is less than 100 per cent., there is—
(a)a relevant disposal which is not an exempted disposal, or
(b)a compulsory disposal.
(2)The amount payable under the covenant shall be determined by the formula—
where—
P = the amount payable under the covenant,
V = the value at the time of the disposal (determined in accordance with paragraph 11) of the dwelling-house or, in the case of a compulsory disposal of a part of the dwelling-house, of the part disposed of, and
S = the tenant’s total share expressed as a percentage.
(3)Section 156 (liability to repay discount a charge on the premises) applies in relation to the liability that may arise under the covenant required by this paragraph as it applies in relation to the liability that may arise under the covenant required by section 155 (repayment of discount on early disposal).
7The lease shall provide that, on the discharge of a liablility arising under the covenant required by paragraph 6—
(a)the rent payable under the lease, or
(b)in the case of a compulsory disposal of a part of the dwelling-house, the rent payable under the lease so far as relating to that part,
shall be £10 per annum.
8(1)Where the dwelling-house is a house and the landlord owns the freehold, the lease shall provide that on the discharge of a liability arising under the covenant required by paragraph 6—
(a)any person in whom the tenant’s interest in the dwelling-house is vested, or
(b)in the case of a compulsory disposal of a part of the dwelling-house, any person in whom that part is vested,
is entitled to require the freehold of the dwelling-house, or as the case may be that part of the dwelling-house, to be conveyed either to himself or to such other person as he may direct.
(2)The right so conferred is exercisable at any time during the term of the lease on the person referred to in sub-paragraph (1)(a) or (b) serving written notice on the landlord.
(3)As soon as practicable after such a right as is mentioned in sub-paragraph (1) has become exercisable by any person, the landlord shall serve on him a written notice—
(a)informing him of the right, and
(b)stating the provisions which, in the opinion of the landlord, should be contained in the conveyance.
(4)A conveyance executed in pursuance of such a right—
(a)shall conform with Parts I and II of Schedule 6 (terms of conveyance in pursuance of right to buy), and
(b)where the lease contains any such covenant as is mentioned in section 157 (restriction on disposal of dwelling-houses in National Parks, etc.), shall preserve the effect of that covenant;
and Part IV of Schedule 6 (charges) applies to such a conveyance as it applies to a conveyance of the freehold in pursuance of the right to buy.
(5)A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.
9(1)The lease shall contain a covenant binding on the tenant and his successors in title that there will be no relevant disposal of part of the dwelling-house, other than a compulsory disposal, at any time when the tenant’s total share is less than 100 per cent.
(2)A disposal in breach of the covenant required by sub-paragraph (1) is void.
10(1)The lease shall provide that in the event of a relevant disposal which is an exempted disposal by virtue of—
section 160(1)(a) (a disposal of whole dwelling-house to member of family),
section 160(1)(b) (vesting on death of tenant), or
section 160(1)(c) (matrimonial property adjustment or family provision order),
references to the tenant in the provisions of the lease required by this Schedule or by section 155 (repayment of discount on early disposal) shall include references to the person to whom the disposal is made.
(2)The lease shall also provide that, in the event of a compulsory disposal of a part of the dwelling-house, references in those provisions to the dwelling-house shall be construed as references to the remaining part of the dwelling-house.
11(1)For the purposes of paragraph 3 (additional contributions) and paragraph 6 (payment for outstanding share on disposal) the value of the dwelling-house, or a part of the dwelling-house, at any time is the amount agreed between the parties or determined by the district valuer as the amount which, in accordance with this paragraph, is to be taken as its value at that time.
(2)That value shall be taken to be the price which the interest of the tenant in the dwelling-house or part would realise if sold on the open market by a willing vendor—
(a)on the assumption that the liabilities mentioned in sub-paragraph (3) would be discharged by the vendor, and
(b)disregarding the matters specified in sub-paragraph (4).
(3)The liabilities referred to in sub-paragraph (2)(a) are—
(a)any mortgages of the tenant’s interest,
(b)any liability under the covenant required by paragraph 6 (payment for outstanding share on disposal), and
(c)any liability under the covenant required by section 155 (repayment of discount on early disposal).
(4)The matters to be disregarded in pursuance of sub-paragraph (2)(b) are any interests or rights over the dwelling-house created by the tenant, any improvements made by the tenant or any of the persons mentioned in section 127(4) (certain predecessors as secure tenant) and any failure by the tenant or any of those persons—
(a)where the dwelling-house is a house, to keep the dwelling-house in good repair (including decorative repair);
(b)where the dwelling-house is a flat, to keep the interior of the dwelling-house in such repair.
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