SCHEDULE 15RELIEF FOR CERTAIN TRANSACTIONS RELATING TO SOCIAL HOUSING

PART 5RENT TO MORTGAGE

Rent to mortgage: chargeable consideration

18

(1)

The chargeable consideration for a rent to mortgage transaction is determined in accordance with this paragraph.

(2)

A rent to mortgage transaction means—

(a)

the transfer of a dwelling to a person, or

(b)

grant of a lease of a dwelling to a person,

pursuant to the exercise by that person of the right to acquire on rent to mortgage terms under Part 5 of the Housing Act 1985 (c. 68).

(3)

The chargeable consideration for a rent to mortgage transaction is equal to the price that would be payable by virtue of section 126 of the Housing Act 1985 (c. 68), for—

(a)

a transfer of the dwelling to the person where the rent to mortgage transaction is a transfer, or

(b)

the grant of a lease of the dwelling to the person where the rent to mortgage transaction is the grant of a lease,

if the buyer was exercising the right to buy under Part 5 of that Act.