58Application to exercise rights conferred by this Part and offer to sell
(1)For the purposes of exercising the right conferred by this Part of this Act, the applicant (that is to say, the approved person or, as the case may be, Scottish Homes) shall serve on the landlord a notice in such form as may be prescribed (in this Part of this Act referred to as an “application”)—
(a)containing a statement that the applicant seeks to exercise the right conferred by this Part of this Act; and
(b)accompanied by the consent in writing of the qualifying tenant to an approach being made to their existing landlord.
In this subsection, “prescribed” means prescribed by regulations made by the Secretary of State by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
(2)In subsection (1) above the reference to the qualifying tenant includes any spouse of his or hers who occupies the house as his or her only or principal home and, where there is a joint tenancy, each joint tenant’s spouse who so occupies the house, and in this subsection the reference to a tenant’s or joint tenant’s spouse includes a person of the opposite sex who is living with the tenant or joint tenant as if he or she were the tenant’s or joint tenant’s husband or wife.
(3)The applicant shall, at the same time as he serves an application, serve a copy of it on the qualifying tenant and on Scottish Homes (where the applicant is not Scottish Homes).
(4)An application shall cease to have effect—
(a)if the applicant withdraws it; or
(b)if the qualifying tenant withdraws his consent,
by notice thereof served upon the landlord.
(5)Where an application is served under this section and the landlord does not serve notice of refusal under section 61 below, it shall within 2 months after service of the application serve on the applicant a notice (in this Part referred to as an “offer to sell notice”) stating—
(a)the market value of the house on the date of service of the application;
(b)any conditions which the landlord intends to impose under subsection (9) below
and containing an offer to sell the house to the applicant at a price equal to that value and under those conditions.
(6)For the purposes of subsection (5) above, the market value of a house shall be determined by either—
(a)a qualified valuer nominated by the landlord and accepted by the applicant; or
(b)the district valuer,
as the landlord thinks fit.
(7)In determining the market value of a house for the purposes of subsection (5) above, regard shall be had to the price which, on the relevant date, it would realise if sold on the open market by a willing seller on the following assumptions, namely—
(a)that it was sold subject to the tenancy held by the qualifying tenant but otherwise with vacant possession;
(b)that it was to be conveyed with the same rights and subject to the same burdens as it would be in pursuance of the right of acquisition under this Part of this Act;
(c)that the only prospective purchasers were Scottish Homes or the persons who, on that date, were approved under section 57 above; and
(d)that the applicant would, within a reasonable period carry out such works as are reasonably necessary to put the house into the state of repair required by the landlord’s repairing obligations.
(8)Where the circumstances are such that, on the relevant date, a house, if offered for sale in accordance with subsection (7) above, would not realise any price then—
(a)for the purposes of that subsection, the price shall be taken to be—
(i)such amount as would require to be paid to Scottish Homes or a person who, on the relevant date, was approved under section 57 above in order that it or he would willingly so acquire the house, expressed as a negative; or
(ii)where Scottish Homes or that person would willingly so acquire it for no consideration, nil;
(b)the market value of the house may be determined under that subsection to be a negative value or nil;
(c)where the market value is so determined, the reference in subsection (5) above to a price equal to the market value shall be construed accordingly and references in this section to selling a house and the purchaser of it shall be construed respectively as references to disposing of it and the acquirer of it; and
(d)where, by virtue of paragraph (c) above, the price of the house is in the negative, the obligation to pay shall be upon the landlord.
(9)The landlord shall, at the same time as it serves an offer to sell notice serve a copy of the notice upon the qualifying tenant.
(10)An offer to sell under this section may be under such conditions as are reasonable, provided that—
(a)they shall not reduce the tenant’s enjoyment and use of the house as tenant of the applicant from that which he had as tenant of the landlord; and
(b)they shall include such terms as are necessary to entitle the applicant to receive a good and marketable title to the house.
(11)A condition which imposes a new charge or an increase of an existing charge for the provision of a service in relation to the house shall provide for the charge to be in reasonable proportion to the cost to the landlord of providing the service.
(12)No condition shall be imposed under this section which has the effect of requiring the applicant or the tenant to pay any expenses of the landlord.