1(1)The lease shall state the tenant’s initial share of the dwelling-house and shall contain provision enabling the tenant to acquire additional shares in the dwelling-house, which shall be either the prescribed percentage (within the meaning of section 145) or a multiple of that percentage.
(2)The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord, stating the additional share he proposes to acquire.
(3)Where the tenant claims to exercise the right to acquire an additional share, the landlord shall, as soon as practicable, serve on the tenant a written notice stating—
(a)the amount which in the opinion of the landlord should be the amount of the consideration for that share on the assumption that the share is as stated in the tenant’s notice, and
(b)the effective discount on an acquisition of that share,
determined in each case, in accordance with paragraph 3(1).
(4)A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.
2(1)Where the dwelling-house is a house and the landlord owns the freehold, the lease shall provide that, on his acquiring an additional share such that his total share will be 100 per cent., the tenant is entitled to require the freehold to be conveyed either to himself or to such other person as he may direct.
(2)The right so conferred is exercisable at any time during the term of the lease on the tenant serving written notice on the landlord.
(3)As soon as practicable after the right mentioned in sub-paragraph (1) has become exercisable, the landlord shall serve on the tenant a written notice—
(a)informing him of the right, and
(b)stating the provisions which, in the opinion of the landlord, should be contained in the conveyance.
(4)A conveyance executed in pursuance of that right—
(a)shall conform with Parts I and II of Schedule 6 (terms of conveyance in pursuance of right to buy), and
(b)shall preserve the effect of the covenant required by section 155 (repayment of discount on early disposal), and
(c)where the lease contains any such covenant as is mentioned in section 157 (restriction on disposal of dwelling-houses in National Parks, etc.), shall preserve the effect of that covenant;
and Part IV of Schedule 6 (charges) applies to such a conveyance as it applies to a conveyance of the freehold in pursuance of the right to buy.
(5)A notice required by this paragraph may be withdrawn at any time by notice in writing served on the landlord.