The Housing (Right to Buy) (Priority of Charges) (No. 2) Order 1991

Statutory Instruments

1991 No. 2052

HOUSING, ENGLAND AND WALES

The Housing (Right to Buy) (Priority of Charges) (No. 2) Order 1991

Made

9th September 1991

Coming into force

30th September 1991

The Secretary of State, in exercise of the powers conferred on him by section 156(4) of the Housing Act 1985(1) and of all other powers enabling him in that behalf, and with the consent of the Treasury, hereby makes the following Order:

Citation and commencement

1.  This Order may be cited as the Housing (Right to Buy) (Priority of Charges) (No. 2) Order 1991 and shall come into force on 30th September 1991.

Specified Bodies

2.  The following bodies are hereby specified as approved lending institutions for the purposes of section 156 of the Housing Act 1985 (priority of charges):

(a) Barshelfco (No. 15) Limited;

(b) Barshelfco (No. 16) Limited;

(c) Finance for Mortgages Limited;

(d) Gracechurch Mortgage Finance plc;

(e) Mortgage Services Funding plc;

(f) Mortgage Services Limited;

(g) Norwich Union Mortgage Finance Ltd;

(h) Scotlife Home Loans (No. 2) Limited;

(i) The Consumer Loans Company Limited;

(j) The Mortgage Business Public Limited Company;

(k) Universal Credit Limited.

Signed by authority of the Secretary of State for the Environment

G. S. K. Young

Minister of State,

Department of the Environment

28th August 1991

We consent,

Sydney Chapman

Irvine Patnick

Two of the Lords Commissioners of Her Majesty’s Treasury

9th September 1991

Explanatory Note

(This note is not part of the Order)

Under the Housing Act 1985 (“the 1985 Act”) liability to repay discount following the exercise of the right to buy or the right to be granted a shared ownership lease is secured by a charge on the dwelling-house. Such a charge does not have priority over certain charges securing advances by bodies which are approved lending institutions for the purposes of section 156 of that Act.

Such bodies are also approved lending institutions for the purposes of section 36 of the 1985 Act (priority of charges on voluntary disposal by a local authority) and paragraph 2 of Schedule 2 to the Housing Associations Act 1985 (c. 69) (priority of charges on voluntary disposal by a housing association) dealing with voluntary disposals at a discount by local authorities and housing associations respectively.

Article 2 of this Order species eleven additional bodies as approved lending institutions. (Other bodies have been specified by previous Orders.)

(1)

1985 c. 68.