Acquisition of additional shares in the house: requirements prescribed under paragraph 3A(2)(c) of Schedule 4A to the Act
5.—(1) The following requirements are prescribed under paragraph 3A(2)(c) of Schedule 4A to the Act for the purposes of paragraph 3A(1)(a) of that Schedule.
(2) The tenant is to be entitled to acquire additional shares in the house, up to a maximum of 100 per cent, in instalments of 25 per cent or such lesser percentage as may be specified in the lease.
(3) If the lease specifies the date after which the tenant may acquire additional shares in the house, such date must not be later than 12 months after the date the tenant first acquired shares in the house.
(4) The tenant is to be able to exercise the entitlement to acquire additional shares in the house by serving notice in writing on the landlord at any time during the term of the lease, stating the additional shares the tenant proposes to acquire.
(5) Where the tenant serves a notice under paragraph (4) the landlord must not act in a way that would unreasonably delay the acquisition by the tenant of the additional shares.
(6) The price for the additional shares is to be an amount no greater than the same percentage of the market value price at the date of service of the tenant’s notice under paragraph (4) as is represented by the percentage of the additional shares being acquired.
(7) The rent payable by the tenant to the landlord under the lease (excluding amounts payable, directly or indirectly, for services, repairs, maintenance, insurance, or management costs) is to be reduced, on the tenant’s acquisition of additional shares, in the same proportion as is represented by the reduction in the percentage of shares remaining un-acquired by the tenant.