The Housing (Right to Buy) (Priority of Charges) (No. 2) Order 1993

Statutory Instruments

1993 No. 2757

HOUSING, ENGLAND AND WALES

The Housing (Right to Buy) (Priority of Charges) (No. 2) Order 1993

Made

2nd November 1993

Coming into force

23rd November 1993

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 1993 and shall come into force on 23rd November 1993.

Specified Bodies

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

(a) Alliance & Leicester Mortgage Loans Limited;

(b) CIS Home Loans Limited;

(c) CIS Mortgage Finance Limited;

(d) CIS Residential Mortgages Limited.

Signed by authority of the Secretary of State

G. S. K. Young

Minister of State,

Department of the Environment

29th October 1993

We consent,

Andrew Mackay

Timothy Kirkhope

Two of the Lords Commissioners of Her Majesty’s Treasury

2nd November 1993

Explanatory Note

(This note is not part of the Order)

Under the Housing Act 1985 liability to repay discount following the exercise of the right to buy or the right to acquire on rent to mortgage terms 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 that 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 specifies four additional bodies as approved lending institutions. Other bodies have been specified by previous Orders.

(1)

1985 c. 68; section 156(4) was amended by the Housing Act 1988 (c. 50), Schedule 17, paragraph 106.

(2)

Section 156 was also amended by the Housing and Planning Act 1986 (c. 63), Schedule 5, paragraph 1(2) and (5) and by section 120(3) and (4) of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28).