(1)Where a secure tenant has claimed to exercise the right to buy and that right has been established, then, as soon as all matters relating to the grant and to the amount to be left outstanding or advanced on the security of the dwelling-house have been agreed or determined, the landlord shall make to the tenant—
(a)if the dwelling-house is a house and the landlord owns the freehold, a grant of the dwelling-house for an estate in fee simple absolute, or
(b)if the landlord does not own the freehold or if the dwelling-house is a flat (whether or not the landlord owns the freehold), a grant of a lease of the dwelling-house,
in accordance with the following provisions of this Part.
(2)If the tenant has failed to pay the rent or any other payment due from him as a tenant for a period of four weeks after it has been lawfully demanded from him, the landlord is not bound to comply with subsection (1) while the whole or part of that payment remains outstanding.
(3)The duty imposed on the landlord by subsection (1) is enforceable by injunction.
(1)A conveyance of the freehold executed in pursuance of the right to buy shall conform with Parts I and II of Schedule 6; a grant of a lease so executed shall conform with Parts I and III of that Schedule; and Part IV of that Schedule has effect in relation to certain charges.
(2)The secure tenancy comes to an end on the grant to the tenant of an estate in fee simple, or of a lease, in pursuance of the provisions of this Part relating to the right to buy; and if there is then a subtenancy section 139 of the [1925 c. 20.] Law of Property Act 1925 (effect of extinguishment of reversion) applies as on a merger or surrender.
(3)The deed by which a mortgage is effected in pursuance of the right to a mortgage shall, unless otherwise agreed between the parties, conform with the provisions of Schedule 7.
(1)The landlord may, subject to the provisions of this section, serve on the tenant at any time a written notice requiring him—
(a)if all relevant matters have been agreed or determined, to complete the transaction within a period stated in the notice, or
(b)if any relevant matters are outstanding, to serve on the landlord within that period a written notice to that effect specifying the matters,
and informing the tenant of the effect of this section and of section 141(1), (2) and (4) landlord’s second notice to complete).
(2)The period stated in a notice under this section shall be such period (of at least 56 days) as may be reasonable in the circumstances.
(3)A notice under this section shall not be served earlier than whichever of the following is applicable—
(a)if the tenant has not claimed to exercise the right to a mortgage, nine months after the end of the period within which a notice claiming it could have been served by him;
(b)if he has claimed the right to a mortgage, but is not entitled to defer completion, nine months after the service of the notice under section 135 (landlord’s notice of terms and amount of mortgage);
(c)if he is entitled to defer completion, two years after the service of his notice under section 122 claiming to exercise the right to buy or, if later, nine months after the service of the notice under section 135 (landlord’s notice of terms and amount of mortgage).
(4)A notice under this section shall not be served if—
(a)a requirement for the determination or re-determination of the value of the dwelling-house by the district valuer has not been complied with,
(b)proceedings for the determination of any other relevant matter have not been disposed of, or
(c)any relevant matter stated to be outstanding in a written notice served on the landlord by the tenant has not been agreed in writing or determined.
(5)In this section “relevant matters” means matters relating to the grant and to the amount to be left outstanding or advanced on the security of the dwelling-house.
(1)If the tenant does not comply with a notice under section 140 (landlord’s first notice to complete), the landlord may serve on him a further written notice—
(a)requiring him to complete the transaction within a period stated in the notice, and
(b)informing him of the effect of this section in the event of his failing to comply.
(2)The period stated in a notice under this section shall be such period (of at least 56 days) as may be reasonable in the circumstances.
(3)At any time before the end of that period (or that period as previously extended) the landlord may by a written notice served on the tenant extend it (or further extend it).
(4)If the tenant does not comply with a notice under this section the notice claiming to exercise the right to buy shall be deemed to be withdrawn at the end of that period (or as the case may require, that period as extended under subsection (3)).
(5)If a notice under this section has been served on the tenant and by virtue of section 138(2) (failure of tenant to pay rent, etc.) the landlord is not bound to complete, the tenant shall be deemed not to comply with the notice.
(1)A tenant is entitled to defer completion if—
(a)he has claimed the right to a mortgage but is not entitled, or treated as entitled, to a full mortgage,
(b)he has, within the period mentioned below, served on the landlord a notice claiming to be entitled to defer completion, and
(c)he has, within the same period, deposited the sum of £100 with the landlord.
(2)The period within which the notice must be served and the sum of £100 deposited is the period of three months beginning with the service on the tenant of the notice under section 135 (notice of terms and amount of mortgage), or that period as extended under subsection (3).
(3)If there are reasonable grounds for doing so the landlord shall extend (or further extend) that periodX; and if it fails to do so the county court may by order extend or further extend that period until such date as may be specified in the order.
(4)A tenant who is entitled to defer completion may at any time before the service on him of a notice under section 140 (landlords' first notice to complete), serve a further notice under section 134(1) (notice claiming to exercise right to a mortgage); and if he does, section 135(1) and (4) (notice of terms and amount of mortgage) apply accordingly.
(5)If in pursuance of a notice under this section the tenant deposits the sum of £100 with the landlord, then—
(a)if he completes the transaction, the sum shall be treated as having been paid towards the purchase price, and
(b)if he does not complete the transaction but withdraws his notice claiming to exercise the right to buy, or is deemed to have withdrawn it by virtue of section 141(4) (effect of failure to comply with landlord’s second notice to complete), the sum shall be returned to him.