Local Government and Housing Act 1989

123 Condition requiring repayment of grant on certain disposals in case of landlord’s common parts application

(1) This section applies where a landlord’s common parts application has been approved by a local housing authority.

(2) It is a condition of the grant that where the applicant makes a relevant disposal (other than an exempt disposal) of the building within the initial period, he shall pay to the local housing authority on demand the amount of the grant.

(3) A condition under subsection (2) above is a local land charge and shall, subject to subsection (5) and section 125 below, remain in force with respect to the building for a period of five years from the certified date.

(4) So long as a condition under subsection (2) above remains in force with respect to a building it is binding on any person who is for the time being a successor in title to that interest in the building by virtue of which, under section 105(2)(b) above, the applicant made his application.

(5) On satisfaction of the liability arising from a demand under this section, any condition under subsection (2) above shall cease to be in force with respect to the building in question.

(6) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124 below.