A local authority shall approve an application for a standard grant if they are satisfied of the matters mentioned in subsections (2) and (3) of this section, and shall not approve it if not so satisfied.

The local authority must be satisfied that after the execution of the works specified in the application the dwelling will be in such condition as not to be unfit for human habitation, and that it is likely to remain in that condition and available for use as a dwelling for a period of not less than fifteen years.

The local authority must also be satisfied that the applicant has, in every parcel of land on which the works are to be carried out (other than land proposed to be sold or leased to him under subsection (2) of section one hundred and five of the Housing Act, 1957 (which authorises a local authority to dispose of land for the purpose of carrying out works in connection with work on an adjoining house)), an interest constituting either an estate in fee simple absolute in possession or a term of years absolute of which not less than fifteen years remain unexpired at the date of the application.

Where the local authority do not approve an application for a standard grant they shall, if the applicant so requests, state to him in writing of which of the matters mentioned in subsections (2) and (3) of this section they are not satisfied and their reasons for not being satisfied thereof.