PART V THE RIGHT TO BUY

Purchase price

129 Discount.

F1(1)

Subject to the following provisions of this Part, a person exercising the right to buy is entitled to a discount of a percentage calculated by reference to the period which is to be taken into account in accordance with Schedule 4 (qualifying period for right to buy and discount).

(2)

The discount is, subject to any order under subsection (2A)—

(a)

in the case of a house, F235 per cent. plus one per cent. for each complete year by which the qualifying period exceeds F3five years, up to a maximum of 60 per cent.;

(b)

in the case of a flat, F450 per cent. plus two per cent. for each complete year by which the qualifying period exceeds F5five years, up to a maximum of 70 per cent.

(2A)

The Secretary of State may by order made with the consent of the Treasury provide that, in such cases as may be specified in the order—

(a)

the minimum percentage discount,

(b)

the percentage increase for each complete year of the qualifying period after the first F6five , or

(c)

the maximum percentage discount,

shall be such percentage, higher than that specified in subsection (2), as may be specified in the order.

(2B)

An order—

(a)

may make different provision with respect to different cases or descriptions of case,

(b)

may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient, and

(c)

shall be made by statutory instrument and shall not be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.

(3)

Where joint tenants exercise the right to buy, Schedule 4 shall be construed as if for the secure tenant there were substituted that one of the joint tenants whose substitution will produce the largest discount.