SCHEDULES
F1SCHEDULE 9. . .
Right to further advances
1
1
The deed shall enable the tenant to require further sums to be advanced to him in the circumstances and subject to the limits stated in this Schedule.
2
The right so conferred is exercisable, within three months of the tenant claiming to exercise his right to acquire an additional share, on the tenant serving written notice on the landlord or F2Corporation.
3
Such a notice may be withdrawn at any time by notice in writing served on the landlord or F2Corporation.
Amount of further advance
2
The amount which a tenant exercising the right to a further advance is entitled to have advanced to him is, subject to the limit imposed by paragraph 3, the amount of his additional contribution.
3
1
The limit is that the aggregate of that amount and the amount for the time being secured by the mortgage shall not exceed—
a
where the right to a further advance belongs to one person, the amount to be taken into account, in accordance with regulations under paragraph 4, as his available annual income multiplied by such factor as, under the regulations, is appropriate to it;
b
where the right to a further advance belongs to more than one person, the aggregate of the amounts to be taken into account in accordance with the regulations as the available annual income of each of them, after multiplying each of those amounts by the factor appropriate to it under the regulations.
2
Where the amount which a tenant is entitled to have advanced to him is reduced by the limit imposed by this paragraph, the landlord may, if it thinks fit and the tenant agrees, treat him as entitled to have advanced to him such amount exceeding that limit, but not exceeding the amount of his additional contribution, as the landlord may determine.
4
1
The Secretary of State may by regulations make provision for calculating the amount which is to be taken into account as a person’s available annual income and for specifying a factor appropriate to it.
2
The regulations may—
a
provide for arriving at a person’s available annual income by deducting from the sums taken into account as his annual income sums related to his needs and commitments, and may exclude sums from those to be taken into account as a person’s annual income, and
b
specify different amounts and different factors for different circumstances.
3
Regulations under this paragraph—
a
may make different provision with respect to different cases or descriptions of case, including different provision for different areas, and
b
shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Notice of amount and terms of further advance
5
As soon as practicable after the service on it of a notice required by paragraph 1, the landlord or F3Corporation shall serve on the tenant a written notice stating—
a
the amount which, in the opinion of the landlord or F3Corporation, the tenant is entitled to have advanced to him on the assumption that the additional share is as stated in the tenant’s notice under paragraph 1 of Schedule 8 (claim-to exercise right to acquire additional shares),
b
if greater than that amount, the amount which, in the opinion of the landlord or F3Corporation, the tenant would be entitled to have advanced to him if the additional share were such that his total share would be 100 per cent,
c
how that amount, or those amounts, have been arrived at, and
d
the provisions which, in the opinion of the landlord or F3Corporation, should be contained in the deed by which the further mortgage is effected.
Terms of deed by which further mortgage is effected
6
Schedule 7 (terms of mortgage granted in pursuance of right to a mortgage) applies to the deed by which the further mortgage is effected, but with the substitution for any reference to the term of the lease of a reference to the unexpired term of the lease.
Sch. 9 repealed (11.10.1993) by 1993 c. 28, s. 187(2), Sch. 22; S.I. 1993/2134, arts. 2, 4(b), Sch. 2 (with saving in Sch. 1 para. 4(1)).