PART III RIGHTS OF PUBLIC SECTOR TENANTS

Procedure

C163 Application to purchase and offer to sell.

1

A tenant who seeks to exercise a right to purchase a house purchase and offer under section 61 shall serve on the landlord a notice (referred to in this to sell. Part as an ”application to purchase”) which shall be in such form as the Secretary of State shall by order made by statutory instrument prescribe, and shall contain—

a

notice that the tenant seeks to exercise the right to purchase;

b

a statement of any period of occupancy of a house on which the tenant intends to rely for the purposes of section 61 and 62; and

c

the name of any joint purchaser within the meaning of section 61(6) F1; and

d

in the case of a tenant who is entitled to purchase the house by way of the rent to loan scheme, a statement whether he wishes to proceed so to purchase the house.

2

Where an application to purchase is served on a landlord, and the landlord does not serve a notice of refusal under sections 68 to 70 it shall, within 2 months after service of the application to purchase, serve on the tenant a notice (referred to in this Part as an “offer to sell”) containing—

a

the market value of the house determined under section 62(2);

b

the discount calculated under section 62(3);

c

the price fixed under section 62(1);

F2cc

where the application to purchase contains a statement under subsection (1)(d) that the applicant wishes to proceed by way of the rent to loan scheme and the statement has not been withdrawn, the minimum amount of the initial capital payment, a statement that the applicant, if so minded, may make an initial capital payment greater than the minimum and a description of the deferred financial commitment including—

i

the amount of the deferred financial commitment calculated as if due to be paid as at the date of the offer to sell;

ii

an explanation of why and how the amount of the deferred financial commitment when payable under section 73C(3)(a) can vary from its amount as calculated under sub-paragraph (i); and

iii

the procedure for paying the deferred financial commitment.

d

any conditions which the landlord intends to impose under section 64; and

e

an offer to sell the house to the tenant and any joint purchaser named in the application to purchase at the price referred to in paragraph (c) and under the conditions referred to in paragraph (d).

F33

Where, in response to an offer to sell containing the matters referred to in paragraph (cc) of subsection (2), an applicant has informed a landlord in writing of his intention to make an initial capital payment of an amount greater than the minimum, the landlord shall, before the end of the period specified in subsection (2) or, if later, the expiry of one month from the date when the landlord was so informed of the tenant’s intention, serve an amended offer to sell in which the calculation of the deferred financial commitment is revised accordingly.