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Version Superseded: 11/10/1993
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(1)A tenant is entitled to defer completion if—
(a)he has claimed the right to a mortgage but is not entitled, or treated as entitled, to a full mortgage,
(b)he has, within the period mentioned below, served on the landlord a notice claiming to be entitled to defer completion, and
(c)he has, within the same period, deposited the sum of [F1£150] with the landlord.
(2)The period within which the notice must be served and the sum of [F1£150] deposited is the period of three months beginning with the service on the tenant of the notice under section 135 (notice of terms and amount of mortgage), or that period as extended under subsection (3).
(3)If there are reasonable grounds for doing so the landlord shall extend (or further extend) that periodX; and if it 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.
(4)A tenant who is entitled to defer completion may at any time before the service on him of a notice under section 140 (landlords’ first notice to complete), serve a further notice under section 134(1) (notice claiming to exercise right to a mortgage); and if he does, section 135(1) and (4) (notice of terms and amount of mortgage) apply accordingly.
(5)If in pursuance of a notice under this section the tenant deposits the sum of [F1£150] with the landlord, then—
(a)if he completes the transaction, the sum shall be treated as having been paid towards the purchase price, and
(b)if he does not complete the transaction but withdraws his notice claiming to exercise the right to buy, or is deemed to have withdrawn it by virtue of section 141(4) (effect of failure to comply with landlord’s second notice to complete), the sum shall be returned to him.
Textual Amendments
F1 “£150” substituted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 24(1), Sch. 5 Pt. I para. 5(2)(3)(4)
Modifications etc. (not altering text)
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