155 Repayment of discount on early disposal.E+W
(1)A conveyance of the freehold or grant of a lease in pursuance of this Part shall contain (unless, in the case of a conveyance or grant in pursuance of the right to buy, there is no discount) a covenant binding on the secure tenant and his successors in title to the following effect.
(2)In the case of a conveyance or grant in pursuance of the right to buy, the covenant shall be to pay to the landlord on demand, if within a period of [F1three years] there is a relevant disposal which is not an exempted disposal (but if there is more than one such disposal, then only on the first of them), the discount to which the secure tenant was entitled, reduced by [F1one-third] for each complete year which has elapsed after the conveyance or grant and before the disposal.
[F2(3)In the case of a conveyance or grant in pursuance of the right to acquire on rent to mortgage terms, the covenant shall be to pay to the landlord on demand, if within the period of three years commencing with the making of the initial payment there is a relevant disposal which is not an exempted disposal (but if there is more than one such disposal, then only on the first of them), the discount (if any) to which the tenant was entitled on the making of—
(a)the initial payment,
(b)any interim payment made before the disposal, or
(c)the final payment if so made,
reduced, in each case, by one-third for each complete year which has elapsed after the making of the initial payment and before the disposal.]
[F3(3A)Where a secure tenant has served on his landlord an operative notice of delay, as defined in section 153A,—
(a)the three years referred to in subsection (2) shall begin from a date which precedes the date of the conveyance of the freehold or grant of the lease by a period equal to the time (or, if there is more than one such notice, the aggregate of the times) during which, by virtue of section 153B, any payment of rent falls to be taken into account in accordance with subsection (3) of that section; and
[F4(b)any reference in subsection (3) (other than paragraph (a) thereof) to the making of the initial payment shall be construed as a reference to the date which precedes that payment by the period referred to in paragraph (a) of this subsection.]]
Textual Amendments
F1Words substituted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 2(3)
F2S. 155(3) substituted (11.10.1993) by 1993 c. 28, s. 120(1); S.I. 1993/2134, arts. 2, 4(b) (with saving in Sch. 1 para. 4(1)).
F3S. 155(3A) inserted by Housing Act 1988 (c. 50, SIF 61), s. 140(1), Sch. 17 para. 41
F4S. 155(3A)(b) substituted (11.10.1993) by 1993 c. 28, s. 120(2); S.I. 1993/2134, arts. 2, 4(b) (with saving in Sch. 1 para. 4(1)).