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(1)A secure tenant cannot exercise his right to a mortgage unless he claims to exercise it by notice in writing served on the landlord, or if the landlord is a housing association, on the Housing Corporation.
(2)The notice must be served within the period of three months beginning with the service on the tenant of—
(a)where he exercises his right under section 128 (determination of value by district valuer), the notice under subsection (5) of that section (further notice by landlord after determination), or
(b)where he does not exercise that right, the notice under section 125 (landlord’s notice of purchase price and other matters),
or within that period as extended under the following provisions.
(3)Where there are reasonable grounds for doing so, the landlord or, as the case may be, the Housing Corporation shall by notice in writing served on the tenant extend (or further extend) the period within which the tenant’s notice claiming to exercise his right to a mortgage must be served.
(4)If in such a case the landlord or Housing Corporation fails to do so, the county court may by order extend or further extend that period until such date as may be specified in the order.
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