155 Repayment of discount on early disposal.E+W
(1)A conveyance of the freehold or grant of a lease in pursuance of this Part shall contain (unless, in the case of a conveyance or grant in pursuance of the right to buy, there is no discount) a covenant binding on the secure tenant and his successors in title to the following effect.
[F1( 2 )In the case of a conveyance or grant in pursuance of the right to buy, the covenant shall be to pay the landlord such sum (if any) as the landlord may demand in accordance with section 155A on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the conveyance or grant.
( 3 )In the case of a conveyance or grant in pursuance of the right to acquire on rent to mortgage terms, the covenant shall be to pay the landlord such sum (if any) as the landlord may demand in accordance with section 155B on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the making of the initial payment.]
[F2(3A)Where a secure tenant has served on his landlord an operative notice of delay, as defined in section 153A,—
(a)the [F3five years] referred to in subsection (2) shall begin from a date which precedes the date of the conveyance of the freehold or grant of the lease by a period equal to the time (or, if there is more than one such notice, the aggregate of the times) during which, by virtue of section 153B, any payment of rent falls to be taken into account in accordance with subsection (3) of that section; and
[F4(b)any reference in subsection (3) (other than paragraph (a) thereof) to the making of the initial payment shall be construed as a reference to the date which precedes that payment by the period referred to in paragraph (a) of this subsection.]]
Textual Amendments
F1S. 155(2)(3) substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 185(2)(5), 270(3)
F2S. 155(3A) inserted by Housing Act 1988 (c. 50, SIF 61), s. 140(1), Sch. 17 para. 41
F3Words in s. 185(3A) substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 185(3)(5), 270(3)
F4S. 155(3A)(b) substituted (11.10.1993) by 1993 c. 28, s. 120(2); S.I. 1993/2134, arts. 2, 4(b) (with saving in Sch. 1 para. 4(1)).
Modifications etc. (not altering text)
C1S. 155(2) modified (18.1.2005) by Housing Act 2004 (c. 34), {s. 185(5)-(7)(a)(8)}
C2S. 155(3) modified (18.1.2005) by Housing Act 2004 (c. 34), {s. 185(5)-(7)(a)(8)}