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(1)The Secretary of State may by regulations make provision for conferring rights and obligations on a mortgagee of a defective dwelling where—
(a)a power of sale (whether conferred by section 101 of the M1Law of Property Act 1925 or otherwise) is exercisable by the mortgagee, and
(b)the mortgagor is eligible for assistance in respect of the defective dwelling.
(2)The rights that may be so conferred are—
(a)rights corresponding to those conferred by this Part on a person holding a relevant interest in the defective dwelling,
(b)the right to require the purchasing authority to acquire in accordance with the regulations any interest in the defective dwelling to be disposed of in exercise of the power of sale, and
(c)where the mortgagee is the purchasing authority, the right by deed to vest the dwelling in themselves;
and those rights may be conferred in place of rights conferred by this Part on any other person.
(3)The regulations may provide that where the conditions in subsection (1)(a) and (b) are or have been satisfied, this Part, the power of sale in question and any enactment relating to the power of sale shall have effect subject to such modifications as may be specified in the regulations.
(4)Where a defective dwelling is vested in a mortgagee in pursuance of—
(a)regulations under this section, or
(b)section 452 and Schedule 17 (vesting of dwelling-house in authority entitled to exercise power of sale),
the regulations may provide for the payment in respect of the vesting of an amount calculated on the assumption that none of the defective dwellings to which the designation in question relates is affected by the qualifying defect; and those enactments shall have effect subject to any such provisions.
(5)Regulations under this section—
(a)may make different provision for different cases and may make incidental and consequential provision; and
(b)shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(6)In this section “mortgagee” and “mortgagor” have the same meaning as in the M2Law of Property Act 1925.
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