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(1)Where an offer to sell (or an amended offer to sell) is served on a tenant, but he is unable by reason of the application of regulations made under section 216(3) (loans) to obtain a loan of the amount for which he has applied, he may, within 2 months of service on him of an offer of loan, or (as the case may be) of the date of a declarator by the sheriff under section 216(7) (loans), whichever is the later, serve on the landlord a notice to the effect that he wishes to have a fixed price option, which notice shall be accompanied by a payment to the landlord of £100, and in that event he shall be entitled to serve a notice of acceptance on the landlord at any time within 2 years of the service of the application to purchase:
Provided that where, as regards the house, the tenant has served a loan application in accordance with subsection (2)(a)(ii) of section 216 (loans), he shall be entitled (even if the said period of 2 years has expired) to serve a notice of acceptance on the landlord within 2 months of whichever is the later of—
(a)the service of a relative offer, or refusal, of loan; or
(b)where section 216(7) is invoked, the decision of the court.
(2)The payment of £100 mentioned in subsection (1) shall be recoverable—
(a)by the tenant, when he purchases the house in accordance with that subsection or, if he does not, at the expiry of the period of 2 years mentioned therein;
(b)by the tenant, when the landlord recovers possession of the house under subsection (3); or
(c)by his personal representatives, if he dies without purchasing the house in accordance with that subsection.
(3)The existence of a fixed price option under subsection (1) shall not prevent the landlord from recovering possession of the property in any manner which may be lawful, and in that event the option shall be terminated.
[F1(4)This section does not apply where the tenant is exercising his right to purchase under section 61 by way of the rent to loan scheme.]
Textual Amendments
F1S. 67(4) inserted (27.9.1993) by 1993 c. 28, s. 143(3); S.I. 1993/2163, art. 2, Sch. 1.
Modifications etc. (not altering text)
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