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171E.—(1) On the termination of the landlord’s interest in the qualifying dwelling-house—
(a)on the occurrence of an event determining his estate or interest, or by re-entry on a breach of condition or forfeiture, or
(b)where the interest is a leasehold interest, by notice given by him or a superior landlord, on the expiry or surrender of the term, or otherwise (subject to subsection (2)),
the right to buy ceases to be preserved.
(2) The termination of the landlord’s interest by merger on his acquiring a superior interest, or on the acquisition by another person of the landlord’s interest together with a superior interest, does not affect the preserved right to buy, unless—
(a)as a result of the acquisition an authority or body within section 80(1) (the landlord condition for secure tenancies) becomes the landlord of the qualifying person or persons, or
(b)paragraph 6 of Schedule 9A applies (effect of failure to register entry protecting preserved right to buy),
in which case the right to buy ceases to be preserved.
(3) Where the termination of the landlord’s interest as mentioned in subsection (1) is caused by the act or omission of the landlord, a qualifying person who is thereby deprived of the preserved right to buy is entitled to be compensated by him.
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