The Housing (Extension of Right to Buy) Order 1993

43.  After section 156 insert the following section—

“Apportionment of discount recovered.

156A.— (1) Subject in cases of acquisition on rent to mortgage terms to section 150B (power to agree final apportionment), where the whole or any part of any discount obtained by the tenant is recovered by the freeholder (whether by the receipt of a payment determined by reference to the discount or by a reduction so determined of any consideration given by the freeholder or in any other way), the freeholder shall pay—

(a) to the authority or body which immediately before completion was the landlord or an intermediate landlord, and

(b) to the rent owner of any rent charge which was then charged on or issued out of the lease of any such authority or body,

a sum calculated by multiplying the amount of the discount recovered by the freeholder by the apportionment fraction applicable to that authority, body or person (ascertained in accordance with section 138A).

(2) No payment shall be made under subsection (1) in relation to a lease if it is a lease for a term certain and the residue of the term unexpired immediately before completion was a period of less than twelve months or if it was a periodic tenancy.

(3) In this section—

• “apportionment fraction” has the meaning given by section 138A(2) (apportionment of purchase price), and

• “rentcharge” and “rent owner” have the same meanings as in the Rent charges Act 1977.”.