Amendment of the Social Landlords (Permissible Additional Purposes or Objects) Order 19962.

(1)

The Social Landlords (Permissible Additional Purposes or Objects) Order 19963 is amended as follows.

(2)

In article 2 (interpretation)—

(a)

in paragraph (1) for the definition of “qualifying lending institution”, substitute—

““qualifying lending institution” means—

(a)

the Housing Corporation; or

(b)

a person who—

  1. (i)
    is an authorised person within the meaning given to that expression by section 31 of the Financial Services and Markets Act 20004, and
  2. (ii)

    has permission under that Act to enter into a regulated mortgage contract as lender;

“regulated mortgage contract” has the meaning given by article 61(3)(a) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 20015;”;

(b)

in paragraph (2) delete sub-paragraphs (b) and (c).

(3)

In article 3 (additional permissible purposes or objects), after paragraph (c), add—

“(d)

disposing of houses on leases—

(i)

granted on a payment of premium calculated by reference to a percentage of the value of the house or the cost of providing it, or

(ii)

under which the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference directly or indirectly to the value of the house.”.