(1)The following provisions of this section apply where, before the commencement of section 91(1) above, a local authority has sold any property under the powers of section 104(1) of the 1957 Act and—
(a)part of the price was secured by a mortgage on the property; and
(b)such a condition was imposed on the sale as is mentioned in section 104(3)(c) of that Act (right of pre-emption) ; and
(c)the period during which the authority has the right to re-acquire the property under that condition has not expired.
(2)If the authority as mortgagee has become entitled to exercise the power of sale conferred by section 101 of the [1925 c. 20.] Law of Property Act 1925 or by the mortgage deed, it may, if the county court gives it leave to do so, by deed vest the property in itself—
(a)for such estate and interest in the property as is the subject of the mortgage or as it would be authorised to sell or convey under that Act on exercising its power of sale; and
(b)freed from all estates, interests and rights to which the mortgage has priority,
but subject to all estates, interests and rights which have priority to the mortgage.
(3)Accordingly, on the vesting of the property the authority's mortgage term or charge by way of legal mortgage, and any subsequent mortgage term or charge, shall merge or be extinguished as respects the property vested.
(4)Where the title to the property is registered under the Land Registration Acts 1925 to 1971 the Chief Land Registrar shall, on application being made to him by the local authority, register the authority as proprietor of the property, free from all estates, interests and rights to which its mortgage had priority, and he shall not be concerned to inquire whether any of the requirements of this and the following section were complied with.
(5)Where a local authority conveys the property, or part of it, to any person—
(a)he shall not be concerned to inquire whether any of the provisions of this or the following section were complied with; and
(b)his title shall not be impeachable on the ground that the property was not properly vested in the authority or that those provisions were not complied with.
(6)Where application for leave under this section is made to the county court, the county court may adjourn the proceedings or postpone the date for the execution of the local authority's deed for such period or periods as the court thinks reasonable.
(7)Any such adjournment or postponement may be made subject to such conditions with regard to payment by the mortgagor of any sum secured by the mortgage or the remedy of any default as the court thinks fit; and the court may from time to time vary or revoke any such condition.
(8)Property vested under this section shall be treated as acquired under Part V of the 1957 Act.