Housing Grants, Construction and Regeneration Act 1996

138 Relocation grants: liability to repay is a charge on dwelling

(1) The liability that may arise under a condition under section 135, or under section 136(4), is a charge on the qualifying dwelling, taking effect as if it had been created by deed expressed to be by way of legal mortgage.

(2) The charge has priority immediately after any legal charge securing an amount—

(a) advanced to the applicant by an approved lending institution for the purpose of enabling him to acquire the dwelling, or

(b) further advanced to him by that institution;

but the local housing authority may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this section to a legal charge securing an amount advanced or further advanced to the applicant by that institution.

(3) A charge taking effect by virtue of this section is a land charge for the purposes of section 59 of the [1925 c. 21.] Land Registration Act 1925 notwithstanding subsection (5) of that section (exclusion of mortgages), and subsection (2) of that section applies accordingly with respect to its protection and realisation.

(4) A condition under section 135 or 136 does not, by virtue of its binding any person who is for the time being an owner of the dwelling, bind a person exercising rights under a charge having priority over the charge taking effect by virtue of this section, or a person deriving title under him.

(5) The approved lending institutions for the purposes of section 156 of the [1985 c. 68.] Housing Act 1985 (right to buy: liability to repay discount is a charge on premises) are also approved lending institutions for the purposes of this section.