The Housing (Extension of Right to Buy) Order 1987

53.  In Schedule 6 (conveyance of freehold and grant of lease in pursuance of right to buy) —

(a) in Part 1 (common provisions) —

(i) in paragraphs 1, 2(1) and (3), 3, 4 and 5 omit the words “or grant”;

(ii) in paragraphs 1, 2(2)(a), 3, 4 and 6 for references to the landlord substitute references to the freeholder;

(iii) in paragraph 3 (rights of way), omit the word “and” at the end of sub-paragraph (a), in sub-paragraph (b) for the words “or by the person then entitled to the reversion on the tenancy.” substitute the words “or by the person then entitled to the freehold; and”, and after sub-paragraph (b) insert —

“(c) such provisions (if any) as the freeholder may require for the purpose of making the dwelling-house subject to rights of way which to the knowledge of the freeholder are necessary for the reasonable enjoyment of other property, being property in which at the relevant time the landlord or an intermediate landlord has an interest, or to rights of way, of which the freeholder has knowledge, granted or agreed to be granted before the relevant time by the landlord or an intermediate landlord or by the person then entitled to the reversion on the tenancy or an intermediate tenancy, other than such right of way which falls within sub-paragraph (b).”;

(iv) after paragraph 4 (covenants and conditions) insert —

“4A.   Where the freeholder is aware of an obligation relating to the dwelling-house breach of which may expose the landlord or an intermediate landlord to liability to another person, the freeholder shall include in the conveyance such provision (if any) as may be reasonable in the circumstances to relieve the landlord or intermediate landlord (as the case may be) from, or to indemnify him against, that liability.”;

(v) in paragraph 5 (reasonable covenants and conditions may be included), for the words “Parts II and III” substitute the words “Part II”;

(vi) in paragraph 6 (no charge to be made for landlord’s consent or approval), omit the words “or lease”; and

(vii) in paragraph 7, in paragraph (a) in the definition of “tenant’s incumbrance”, for the word “reversion” substitute the words “freehold reversion”.

(b) in Part II (conveyance of freehold), in paragraphs 8 and 10, for the references to the landlord substitute references to the freeholder;

(c) omit Part III (leases); and

(d) in Part IV (charges) —

(i) omit paragraph 20 (grant of lease),

(ii) in paragraph 21 (conveyance of freehold), in sub-paragraphs (2), (3) and (4), for the references to the landlord substitute references to the freeholder, and

(iii) after paragraph 21 insert —

“21A— (1) This paragraph applies to a charge (however created or arising) on a lease (including the secure tenancy) extinguished by section 139(2) (terms and effect of conveyance and mortgage) when the freehold is conveyed in pursuance of the right to buy.

(2) The extinguishment of the lease does not affect the personal liability of the landlord or intermediate landlord (as the case may be) or of any other person in respect of any obligation which the charge was created to secure.”.