Prospective
18(1)In section 5 (qualifying tenants), after subsection (2)(c) insert “or
“(d)the lease is an excluded shared ownership lease (see section 5A);”.
(2)After section 5 insert—
(1)For the purposes of this Chapter a lease is an “excluded shared ownership lease” if it—
(a)is a shared ownership lease, and
(b)meets conditions A to D.
(2)But conditions C and D do not need to be met if the shared ownership lease is of a description prescribed for this purpose in regulations made by the Secretary of State.
(3)Condition A: the lease allows for the tenant to increase the tenant’s share in the demised premises by increments of 25% or less (whether or not the lease also provides for increments of more than 25%).
(4)Condition B: the lease provides—
(a)for the price payable for an increase in the tenant’s share in the demised premises to be proportionate to the market value of the premises at the time the share is to be increased, and
(b)if the tenant’s share is increased, for the rent payable by the tenant in respect of the landlord’s share in the demised premises to be reduced by an amount reflecting the increase in the tenant’s share.
(5)Condition C: the lease allows for the tenant’s share in the demised premises to reach 100%.
(6)Condition D: if and when the tenant’s share in the demised premises is 100%, the tenancy provides that the terms of the lease which make the lease a shared ownership lease cease to have effect, without the payment of any further consideration.
(7)In this section “demised premises” means the premises demised under the shared ownership lease.”
(3)In section 38(1) (interpretation of Chapter 1 of Part 1), after the definition of “conveyance” insert—
““excluded shared ownership lease” has the meaning given in section 5A;”.
Commencement Information
I1Sch. 8 para. 18 not in force at Royal Assent, see s. 124(3)