Housing Act 1985

125 Landlord’s notice of purchase price and other matters.

(1) Where a secure tenant has claimed to exercise the right to buy and that right has been established (whether by the landlord’s admission or otherwise), the landlord shall—

(a) within eight weeks where the right is that mentioned in section 118(1)(a) (right to acquire freehold), and

(b) within twelve weeks where the right is that mentioned in section 118(1)(b) (right to acquire leasehold interest).

serve on the tenant a notice complying with this section.

(2) The notice shall describe the dwelling-house, shall state the price at which, in the opinion of the landlord, the tenant is entitled to have the freehold conveyed or, as the case may be, the lease granted to him and shall, for the purpose of showing how the price has been arrived at, state—

(a) the value at the relevant time,

(b) the improvements disregarded in pursuance of section 127 (improvements to be disregarded in determining value), and

(c) the discount to which the tenant is entitled, stating the period to be taken into account under section 129 (discount) and, where applicable, the amount mentioned in section 130(1) (reduction for previous discount) or section 131(1) or (2) (limits on amount of discount).

(3) The notice shall state the provisions which, in the opinion of the landlord, should be contained in the conveyance or grant.

(4) Where the notice states provisions which would enable the landlord to recover from the tenant service charges (within the meaning of section 18 of the [1985 c. 70.] Landlord and Tenant Act 1985 or section 46 of this Act), the notice shall also state—

(a) the landlord’s estimate of the average annual amount (at current prices) which would be payable in respect of each head of charge, and

(b) the aggregate of those estimated amounts.

(5) The notice shall also inform the tenant of—

(a) his right under section 128 to have the value of the dwelling-house at the relevant time determined or redetermined by the district valuer,

(b) the right to a mortgage and the effect of sections 134 and 135 (procedure for claiming to exercise that right).

(c) the effect of sections 140, 141(1), (2) and (4) and 142(1) and (2) (landlord’s notices to complete, effect of failure to comply and right to defer completion), and

(d) the effect of the provisions of this Part relating to the right to be granted a shared ownership lease;

and the notice shall be accompanied by a form for use by the tenant in claiming to exercise the right to a mortgage.