Housing Act 1985

35 Repayment of discount on early disposal.E+W

(1)This section applies where, on a disposal of a house under section 32, a discount is given to the purchaser by the local authority in accordance with a consent given by the Secretary of State under subsection (2) of that section; but this section does not apply in any such case if the consent so provides.

(2)On the disposal the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title [F1to the following effect.]

[F2(3)The covenant shall be to pay to the authority such sum (if any) as the authority may demand in accordance with subsection (4) on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the conveyance, grant or assignment.

(4)The authority may demand such sum as they consider appropriate, up to and including the maximum amount specified in this section.

(5)The maximum amount which may be demanded by the authority is a percentage of the price or premium paid for the first relevant disposal which is equal to the percentage discount given to the purchaser in respect of the disposal of the house under section 32.

(6)But for each complete year which has elapsed after the conveyance, grant or assignment and before the first relevant disposal the maximum amount which may be demanded by the landlord is reduced by one-fifth.

(7)Subsections (4) to (6) are subject to section 35A.]

Textual Amendments

F1Words in s. 35(2) substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 195(2)(4), 270(3)(a)

Modifications etc. (not altering text)