F173B The initial capital payment.S
(1)The initial capital payment in respect of a house is a sum determined by the tenant, being of an amount not less than the maximum amount of loan which could be repaid at the statutory rate of interest over the loan period by weekly payments each equal to the adjusted weekly rent for the house.
(2)In this section—
(a)the “statutory rate of interest” is the rate of interest which would be charged under section 219(4) on the application date by the local authority for the area in which the house is situated;
(b)the “loan period” is the period beginning on the application date and ending on whichever of the following is the earlier—
(i)the expiry of a period of 25 years starting on that date; and
(ii)the date when the applicant will (if he survives) reach pensionable age within the meaning [F2given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995)] or, in the case of joint applicants, the date when the one who will (if they both or all survive) reach pensionable age later than the other or the others reaches that age,
but if the period arrived at under sub-paragraph (ii) is less than 10 years, then the loan period shall be a period of 10 years beginning on the application date;
(c)the “adjusted weekly rent” is an amount equal to 90 per cent of the weekly rent for the house payable as at the application date; and
(d)the “application date” is the date of the application to purchase the house.
Textual Amendments
F1Ss. 73A-73D inserted (27.9.1993) by 1993 c. 28, s. 142; S.I. 1993/2163, art. 2, Sch. 1.
F2Words in s. 73B(2)(b)(ii) substituted (19.7.1995) by 1995 c. 26, ss. 126, 180(2), Sch. 4 Pt. III para. 11