Housing (Scotland) Act 1987

62 The price. S

(1) Subject to [F1 subsection (6A)], the price at which a tenant entitled to purchase a house under this Part shall be fixed [F2 as at the date of service of the application to purchase] by subtracting a discount from the market value of the house.

(2) The market value for the purposes of this section shall be determined by [F3 either]—

(a) a qualified valuer nominated by the landlord and accepted by the tenant; or

(b) the district valuer,

[F4 as the landlord thinks fit] as if the house were available for sale on the open market with vacant possession at the date of service of the application to purchase.

For the purposes of this subsection, no account shall be taken of any element in the market value of the house which reflects an increase in value as a result of work the cost of which would qualify for a reimbursement under section 58.

(3) Subject to subsection (5), the discount for the purposes of subsection (1) shall be—

(a) 32 per cent. of the market value of the house except—

(i) where the house is a flat, it shall be 44 per cent. of the market value;

(ii) where the house is one to which section 61(3) applies, it shall be 30 per cent. or, where it is a flat, 40 per cent. of the market value;

together with

(b) an additional one per cent. or, where the house is a flat, two per cent., of the market value for every year beyond 2 of continuous occupation by the appropriate person, immediately preceding the date of service of the application to purchase, of a house (including accommodation provided as mentioned in section 61(11)(n) or of a succession of houses provided by any persons mentioned in section 61(11),

up to a maximum discount of 60 per cent., or where the house is a flat, 70 per cent. of the market value.

(4) For the purposes of subsection (3) [F5 (a)], the “appropriate person” is the tenant, or if it would result in a higher discount and if she is cohabiting with him at the date of service of the application to purchase, his spouse; and where joint tenants are joint purchasers the “appropriate person” shall be whichever tenant (or, as the case may be, spouse) has the longer or longest such occupation [F6 ; and]

[F6 (b) where the house was provided by a housing association which, at any time while the house was so provided was not a registered housing association, the association shall, if it became a registered housing association at any later time, be deemed to have been a registered housing association at all times since it first provided the house.]

(5) The Secretary of State may by order made with the consent of the Treasury provide that, in such cases as may be specified in the order—

(a) the minimum percentage discount,

(b) the percentage increase for each complete year of the qualifying period after the first two, or

(c) the maximum percentage discount,

shall be such percentage, higher than that specified in subsection (3), as may be specified in the order.

(6) An order under subsection (5)—

(a) may make different provision with respect to different cases or descriptions of case,

(b) may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient, and

(c) shall be made by statutory instrument and shall not be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.

[F7 (6A) Except where the Secretary of State so determines, the discount for the purpose of subsection (1) shall not reduce the price below the amount which, in accordance with a determination made by him, is to be taken as representing so much of the costs incurred in respect of the house as, in accordance with the determination, is to be treated as—

(a) incurred in the period commencing with the beginning of the financial year of the landlord which was current 5 years prior to the date of service of the application to purchase the house or such other period as the Secretary of State may by order provide; and

(b) relevant for the purposes of this subsection,

and, if the price before discount is below that amount, there shall be no discount.

(6B) An order under subsection (6A) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament and may make different provision in relation to different cases or circumstances or different areas.]

(10) Where at the date of service of an offer to sell under section 63 any of the costs referred to in subsection [F8 (6A)] are not known, the landlord shall make an estimate of such unknown costs for the purposes of that subsection.

(11)–(13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

Textual Amendments

F1 Words substituted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 65(1)(6)

F2 Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 94

F3 Word inserted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(1), Sch. 8 para. 2(a)(i)

F4 words inserted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(1), Sch. 8 para. 2(a)(ii)

F5 “(a)” inserted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(1), Sch. 8 para. 2(b)(i)

F6 Word “; and” and s. 62(4)(b) added by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 72(1), Sch. 8 para. 2(b)(ii)

F7 S. 62(6A)(6B) substituted for s. 62(7)–(9) by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 65(2)(6)

F8 “(6A)” substituted by Housing (Scotland) Act 1988 (c. 43, SIF 61), s. 65(3)(6)

F9 S. 62(11)–(13) repealed by Housing (Scotland) Act 1988 (c. 43, SIF 61), ss. 65(4)(6), 72(3), Sch. 10

Modifications etc. (not altering text)

C1 S. 62 modified (13.3.1992) by S.I. 1992/325, regs.3, 5, 7, Sch. 1