Housing Act 1985

507 Voluntary repayment of grant.

(1) If at any time while a condition of a grant remains in force—

(a) the owner of the dwelling to which the condition relates pays to the local housing authority by whom the grant was made the amount specified in section 506(2) (amount repayable for breach of condition), or

(b) a mortgagee of the interest of the owner in that dwelling, being a mortgagee entitled to exercise a power of sale, makes such a payment,

all conditions of the grant cease to be in force with respect to that dwelling.

(2) An amount paid under subsection (1) by a mortgagee shall be treated as part of the sums secured by the mortgage and may be discharged accordingly.

(3) The purposes authorised for the application of capital money by—

• section 73 of the [1925 c. 18.] Settled Land Act 1925,

• that section as applied by section 28 of the [1925 c. 20.] Law of Property Act 1925 in relation to trusts for sale, and

• section 26 of the [1925 c. 24.] Universities & College Estates Act 1925,

include the making of payments under subsection (1).