The Housing (Preservation of Right to Buy) (Scotland) Regulations 1993

The price

62.—(1) Subject to subsection (6A), the price at which a qualifying person shall be entitled to purchase a qualifying house under this Part shall be fixed as at the date of service of the application to purchase by subtracting a discount from the market value of the qualifying house.

(2) The market value for the purposes of this section shall be determined by either–

(a) a qualified valuer nominated by the landlord and accepted by the qualifying person; or

(b) the district valuer,

as the landlord thinks fit as if the qualifying house were available for sale on the open market with vacant possession at the date of service of the application to purchase.

For the purposes of this subsection, no account shall be taken of any element in the market value of the qualifying house which reflects an increase in value as a result of work the cost of which would qualify for a reimbursement under section 58.

(3) Subject to subsection (5), the discount for the purposes of subsection (1) shall be–

(a) 32 per cent. of the market value of the qualifying house except–

(i) where the qualifying house is a flat, it shall be 44 per cent. of the market value;

(ii) where the qualifying house is one to which section 61(3) applies, it shall be 30 per cent. or, where it is a flat, 40 per cent. of the market value;

together with

(b) an additional one per cent. or, where the qualifying house is a flat, two per cent., of the market value for every year beyond 2 of occupation by the appropriate person, preceding the date of service of the application to purchase, of a house or of a qualifying house (including accommodation provided as mentioned in section 61(11)(n)) or of a succession of houses provided by any persons mentioned in section 61(11),

up to a maximum discount of 60 per cent., or where the qualifying house is a flat, 70 per cent. of the market value.

(3A) There shall be deducted from the discount an amount equal to any previous discount, or the aggregate of any previous discounts, received by the appropriate person on any previous purchase of a house by any of these persons from a landlord who is a person specified in subsection (11) of section 61 or prescribed in an order made under that subsection, reduced by any amount of such previous discount recovered by such a landlord.

(4) For the purposes of subsection (3)–

(a) the “appropriate person” is whoever of–

(i) the qualifying person; or

(ii) the qualifying person’s spouse if living with him at the date of service of the application to purchase; or

(iii) a deceased spouse if living with the qualifying person at the time of death; or

(iv) any qualifying person who is a joint purchaser of the house,

has the longer or longest such occupation; and

(b) where the house or qualifying house was provided by a housing association which, at any time while the house or qualifying house was so provided was not a registered housing association, the association shall, if it became a registered housing association at any later time, be deemed to have been a registered housing association at all times since it first provided the house or qualifying house,

and, for the purposes of subsection (3A), the “appropriate person” is any of the persons mentioned in sub-paragraphs (i) to (iv) of paragraph (a).

(5) The Secretary of State may by order made with the consent of the Treasury provide that, in such cases as may be specified in the order–

(a) the minimum percentage discount,

(b) the percentage increase for each complete year of the qualifying period after the first two, or

(c) the maximum percentage discount,

shall be such percentage higher than that specified in subsection (3), as may be specified in the order.

(6) An order under subsection (5)–

(a) may make different provision with respect to different cases or descriptions of case,

(b) may contain such incidental, supplementary or transitional provisions as appear to the Secretary of State to be necessary or expedient, and

(c) shall be made by statutory instrument and shall not be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.

(6A) Except where the Secretary of State so determines, the discount for the purpose of subsection (1) shall not reduce the price below the amount which, in accordance with a determination made by him, is to be taken as representing so much of the costs incurred in respect of the qualifying house as, in accordance with the determination, is to be treated as–

(a) incurred in the period commencing with the beginning of the financial year of the landlord which was current 5 years prior to the date of service of the application to purchase the qualifying house or such other period as the Secretary of State may by order provide; and

(b) relevant for the purposes of this subsection,

and if the price before discount is below that amount, there shall be no discount.

(6B) An order under subsection (6A) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament and may make different provision in relation to different cases or circumstances or different areas.

(10) Where at the date of service of an offer to sell under section 63 any of the costs referred to in subsection (6A) are not known, the landlord shall make an estimate of such unknown costs for the purposes of that subsection.