SCHEDULES
F9SCHEDULE 4A Exclusion of Certain Shared Ownership Leases
Certain leases granted by certain public authorities
C12
1
A lease which—
a
was granted at a premium by a body mentioned in sub-paragraph (2), and
b
complies with the conditions set out in sub-paragraph (3),
2
The bodies are—
a
a county, F2county borough, district or London borough council, the Common Council of the City of London or the Council of the Isles of Scilly;
F27ba
a fire and rescue authority created by an order under section 4A of the Fire and Rescue Services Act 2004;
F25bc
a Mayoral development corporation;
c
d
an urban development corporation within the meaning of Part XVI of the Local Government, Planning and Land Act M41980;
F5e
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6f
a housing action trust established under Part III of the Housing Act 1988
3
The conditions are that the lease–
a
provides for the tenant to acquire the freehold for a consideration which is to be calculated in accordance with the lease and which is reasonable, having regard to the premium or premiums paid by the tenant under the lease, and
b
states the landlord’s opinion that by virtue of this paragraph the tenancy will be excluded from the operation of this Part of this Act at any time when the interest of the landlord belongs to a body mentioned in sub-paragraph (2) above F20or to a relevant housing provider.
4
If, in proceedings in which it falls to be determined whether a lease complies with the condition in sub-paragraph (3)(a), the question arises whether the consideration payable by the tenant on acquiring the freehold is reasonable, it is for the landlord to show that it is.
F215
In this paragraph “relevant housing provider” means–
a
in relation to a lease of social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, a private registered provider of social housing, or
b
a registered social landlord within the meaning of Part 1 of the Housing Act 1996.
F12 Certain leases granted by housing associationsF12Certain housing association and other leases
Sch. 4A para. 3 cross-heading substituted (1.12.2008 for E. for specified purposes, 7.9.2009 for E. in so far as not already in force) by Housing and Regeneration Act 2008 (c. 17), ss. 301(2), 325(1); S.I. 2008/3068, art. 4(5) (with arts. 6-13); S.I. 2009/2096, art. 2(2)(b) (with art. 3(1)(2))
3
1
A lease granted by a housing association and which complies with the conditions set out in sub-paragraph (2) is excluded from the operation of this Part of this Act, whether or not the interest of the landlord still belongs to such an association.
2
The conditions are that the lease—
a
was granted for a term of 99 years or more and is not (and cannot become) terminable except in pursuance of a provision for re-entry or forfeiture;
b
was granted at a premium, calculated by reference to the value of the house or the cost of providing it, of not less than 25 per cent., or such other percentage as may be prescribed, of the figure by reference to which it was calculated;
c
provides for the tenant to acquire additional shares in the house on terms specified in the lease and complying with such requirements as may be prescribed;
F7d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e
if it enables the landlord to require payment for outstanding shares in the house, does so only in such circumstances as may be prescribed;
f
provides for the tenant to acquire the landlord’s interest on terms specified in the lease and complying with such requirements as may be prescribed; and
g
states the landlord’s opinion that by virtue of this paragraph the lease is excluded from the operation of this Part of this Act.
3
In any proceedings the court may, if of the opinion that it is just and equitable to do so, treat a lease as satisfying the conditions in sub-paragraph (2) notwithstanding that the condition specified in paragraph (g) of that sub-paragraph is not satisfied.
4
In this paragraph “housing association” has the same meaning as in the Housing Associations Act M51985.
F12F113A
1
A lease which does not fall within paragraph 3 is excluded from the operation of this Part of this Act if the lease—
a
meets the conditions mentioned in sub-paragraph (2);
b
meets any other prescribed conditions; and
c
does not fall within any prescribed exemptions.
2
The conditions referred to in sub-paragraph (1)(a) are that the lease—
a
was granted for a term of 99 years or more and is not (and cannot become) terminable except in pursuance of a provision for re-entry or forfeiture;
b
was granted at a premium, calculated by reference to the value of the house or the cost of providing it, of not less than 25 per cent, or such other percentage as may be prescribed, of the figure by reference to which it was calculated;
c
provides for the tenant to acquire additional shares in the house on terms specified in the lease and complying with such requirements as may be prescribed;
d
does not restrict the tenant's powers to mortgage or charge his interest in the house;
e
if it enables the landlord to require payment for outstanding shares in the house, does so only in such circumstances as may be prescribed;
f
provides for the tenant to acquire the landlord's interest on terms specified in the lease and complying with such requirements as may be prescribed; and
g
states the landlord's opinion that by virtue of this paragraph the lease is excluded from the operation of this Part of this Act.
3
In any proceedings the court may, if it considers that it is just and equitable to do so, treat a lease as meeting the conditions mentioned in sub-paragraph (2) despite the fact that the condition specified in paragraph (g) of that sub-paragraph is not met.
4
1
2
The conditions are that the lease—
a
is granted at a premium which is calculated by reference to a percentage of the value of the house or of the cost of providing it,
b
complies, at the time when it is granted, with such requirements as may be prescribed, and
c
states the landlord’s opinion that by virtue of this paragraph the lease will be excluded from the operation of this Part of this Act at any time when the interest of the landlord belongs to F23a relevant housing provider .
3
In this paragraph—
“lease for the elderly” has such meaning as may be prescribed; and
F24“relevant housing provider” means—
- a
in relation to a lease of social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, a private registered provider of social housing, or
- b
a registered social landlord within the meaning of Part 1 of the Housing Act 1996.
Certain leases in protected areas
F134A
1
A lease which does not fall within paragraph 3 or 3A is excluded from the operation of this Part of this Act if—
a
the lease meets the conditions mentioned in sub-paragraph (2);
b
any provision in the lease for the tenant to acquire the landlord's interest provides for the tenant to acquire the interest on terms specified in the lease and complying with such requirements as may be prescribed;
c
the lease meets any other prescribed conditions;
d
the lease does not fall within any prescribed exemptions; and
e
the house is in a protected area.
2
The conditions referred to in sub-paragraph (1)(a) are that the lease—
a
was granted for a term of 99 years or more and is not (and cannot become) terminable except in pursuance of a provision for re-entry or forfeiture;
b
was granted at a premium, calculated by reference to the value of the house or the cost of providing it, of not less than 25 per cent, or such other percentage as may be prescribed, of the figure by reference to which it was calculated;
c
provides for the tenant to acquire additional shares in the house on terms specified in the lease and complying with such requirements as may be prescribed;
d
does not restrict the tenant's powers to mortgage or charge his interest in the house;
e
if it enables the landlord to require payment for outstanding shares in the house, does so only in such circumstances as may be prescribed; and
f
states the landlord's opinion that by virtue of this paragraph the lease is excluded from the operation of this Part of this Act.
3
The appropriate national authority may by order made by statutory instrument designate an area as a protected area if it considers it appropriate to do so to support the provision in the area of houses, or descriptions of houses, which are available for occupation in accordance with shared ownership arrangements.
4
The appropriate national authority must publish the criteria for the time being in force which are to be taken into account by it in deciding whether to designate an area as a protected area.
5
Before making an order under sub-paragraph (3) the appropriate national authority must take such steps as it considers to be reasonable to consult those likely to be affected by the order.
6
In any proceedings the court may, if it considers that it is just and equitable to do so, treat a lease as meeting the conditions mentioned in sub-paragraph (2) despite the fact that the condition mentioned in paragraph (f) of that sub-paragraph is not met.
7
An order under this paragraph may contain such incidental, supplementary, transitory, transitional or saving provisions as the appropriate national authority considers appropriate.
8
In this paragraph “shared ownership arrangements” has the same meaning as in section 70 of the Housing and Regeneration Act 2008.
9
An instrument containing—
a
an order of the Secretary of State under this paragraph is subject to annulment in pursuance of a resolution of either House of Parliament;
b
an order of the Welsh Ministers under this paragraph is subject to annulment in pursuance of a resolution of the National Assembly for Wales.
Power to prescribe matters by regulations
5
1
2
The regulations may—
a
make different provision for different cases or descriptions of case, including different provision for different areas, and
b
and shall be made by statutory instrument which F16, in the case of regulations made by the Secretary of State, shall be subject to annulment in pursuance of a resolution of either House of Parliament F17and, in the case of regulations made by the Welsh Ministers, shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales .
Interpretation
6
In this Schedule “lease” means a lease at law or in equity, and references to the grant of a lease shall be construed accordingly.
F187
In this Schedule “appropriate national authority” means—
a
in relation to England, the Secretary of State; and
b
in relation to Wales, the Welsh Ministers.
Schedule 4A inserted by Housing and Planning Act 1986 (c. 63, SIF 75:1), s. 18, Sch. 4 para. 6