Leasehold Reform, Housing and Urban Development Act 1993

143 Rent to loan scheme: related amendments

(1) The 1987 Act shall have effect subject to the following amendments (being amendments related to the rent to loan scheme).

(2) In section 63—

(a) in subsection (1), after paragraph (c) there shall be inserted the following “; 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.”;

(b) in subsection (2), after paragraph (c), there shall be inserted the following paragraph—

“(cc) 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subsection (1)(d) that the applicant wishes to proceed by way of the rent to loan scheme and the statement has not been withdrawn, the minimum amount of the initial capital payment, a statement that the applicant, if so minded, may make an initial capital payment greater than the minimum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.”

(c) at the end there shall be inserted the following subsection—

“(3) 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.”

(3) In section 67, there shall be inserted at the end the following subsection—

“(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.”

(4) In section 71—

(a) in subsection (1)—

(i) in paragraph (a), after “offer”, in both places where it occurs, there shall be inserted “or amended offer”;

(ii) in paragraph (d), after “offer” there shall be inserted “or amended offer” and there shall be added at the end “and, in the case of an amended offer, they do not conform with the requirements of section 63(3)”; and

(b) in subsection (2)—

(i) in paragraph (b), after “offer” there shall be inserted “or amended offer”; and

(ii) after “63(2)”there shall be inserted “and, in the case of an amended offer, under section 63(3)”.

(5) In section 82—

(a) after “20” there shall be inserted “214”; and

(b) the following definitions shall be inserted at the appropriate places—

“the “rent to loan purchaser” of a house is the person who exercised his right to purchase it under section 61 by way of the rent to loan scheme or, where section 73D(1) applies, the person whose selling or otherwise disposing of the house or whose death is, by virtue of subsection (2) of that section, the occasion for payment of the deferred financial commitment, that person;

“rent to loan scheme” means the provisions of sections 62A and 73A to 73D.”

(6) In section 214, there shall be inserted at the end the following subsection—

“(9) This section applies to the deferred financial commitment as it applies to an advance and references in it and in section 215 to the making of advances shall be construed as references to such functions of a local authority under the rent to loan scheme as relate to the creation of the deferred financial commitment, but Schedule 17 shall not so apply.”

(7) In section 216, there shall be inserted at the end the following subsection—

“(10) This section does not apply in the case of the purchase of a house by way of the rent to loan scheme.”