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The Housing (Right to Buy) (Priority of Charges) Order 1989

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Statutory Instruments

1989 No. 958

HOUSING, ENGLAND AND WALES

The Housing (Right to Buy) (Priority of Charges) Order 1989

Made

6th June 1989

Coming into force

28th June 1989

The Secretary of State for the Environment, as respects England, and the Secretary of State for Wales, as respects Wales, in exercise of the powers conferred on them by section 156(4) of the Housing Act 1985(1), and of all other powers enabling them in that behalf, and with the consent of the Treasury, hereby make the following Order:

1.  This Order may be cited as the Housing (Right to Buy) (Priority of Charges) Order 1989 and shall come into force on 28th June 1989.

2.  The following bodies are hereby specified as approved lending institutions for the purposes of section 156 of the Housing Act 1985:

(a)HMC Group PLC

(b)HMC First Home National PLC

(c)Household Mortgage Bridging Limited

(d)Household Mortgage Corporation PLC

(e)London and Manchester (Mortgages) (No. 3) Limited

(f)London and Manchester (Mortgages) (No. 4) Limited

(g)Mortgage Express Limited

(h)Wesleyan Home Loans Limited.

Nicholas Ridley

Secretary of State for the Environment

30th May 1989

Peter Walker

Secretary of State for Wales

1st June 1989

We consent,

Stephen Dorrell

David Lightbown

Two of the Lords Commissioners of Her Majesty’s Treasury

6th June 1989

Explanatory Note

(This note is not part of the Order)

Under the Housing Act 1985 (“the 1985 Act”) liability to repay discount following the exercise of the right to buy or the right to be granted a shared ownership lease is secured by a charge on the dwelling house. Such a charge does not have priority over certain charges securing advances by bodies which are approved lending institutions for the purposes of section 156 of that Act.

Such bodies are also approved lending institutions for the purposes of section 36(4) of the 1985 Act (priority of charges on voluntary disposal by a local authority) and paragraph 2(4) of Schedule 2 to the Housing Associations Act 1985 (c. 69) (priority of charges on voluntary disposal by a housing association) dealing with voluntary disposals at a discount by local authorities and housing associations respectively.

Article 2 of this Order specifies eight additional bodies as approved lending institutions. (Other bodies have been specified by previous orders.)

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