5ACertain shared ownership leases.

1

A tenancy is not a protected tenancy if it is a qualifying shared ownership lease, that is—

a

a lease granted in pursuance of the right to be granted a shared ownership lease under Part V of the Housing Act 1985, or

b

a lease granted by a housing association and which complies with the conditions set out in subsection (2) below.

2

The conditions referred to in subsection (1)(b) above are that the lease—

a

was granted for a term of 99 years or more and is not (and cannot become) terminable except in pursuance of a provision for re-entry or forfeiture ;

b

was granted at a premium, calculated by reference to the value of the dwelling-house or the cost of providing it, of not less than 25 per - cent., or such other percentage as may be prescribed, of the figure by reference to which it was calculated;

c

provides for the tenant to acquire additional shares in the dwelling-house on terms specified in the lease and complying with such requirements as may be prescribed ;

d

does not restrict the tenant's powers to assign, mortgage or charge his interest in the dwelling-house ;

e

if it enables the landlord to require payment for outstanding shares in the dwelling-house, does so only in such circumstances as may be prescribed ;

f

provides, in the case of a house, for the tenant to acquire the landlord's interest on terms specified in the lease and complying with such requirements as may be prescribed ; and

g

states the landlord's opinion that by virtue of this section the lease is excluded from the operation of this Act.

3

The Secretary of State may by regulations prescribe anything requiring to be prescribed for the purposes of subsection (2) above.

4

The regulations may—

a

make different provision for different cases or descriptions of case, including different provision for different areas, and

b

contain such incidental, supplementary or transitional provisions as the Secretary of State considers appropriate,

and shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

5

In any proceedings the court may, if of opinion that it is just and equitable to do so, treat a lease as a qualifying shared ownership lease notwithstanding that the condition specified in subsection (2)(g) above is not satisfied.

6

In this section—

• " house " has the same meaning as in Part I of the Leasehold Reform Act 1967 ;

• "housing association" has the same meaning as in the Housing Associations Act 1985 ; and

• " lease" includes an agreement for a lease, and references to the grant of a lease shall be construed accordingly.

cc

it creates a qualifying shared ownership lease within the meaning of section 5A of this Act; or