Housing (Scotland) Act 2006

172 Repayment charges S

(1) A local authority entitled to recover a sum under section 59(1) or (2) [F1 , section 61(3A), subsection (6A) below] [F2 , paragraph 6(1) of schedule 5 or section 4A(5) of the Tenements (Scotland) Act 2004 (asp 11)] may make in favour of itself a charge (a “repayment charge”)—

(a) specifying the repayable amount and the [F3 property] concerned, F4 ...

(b) providing that the [F3 property] concerned is charged with the repayable amount.

[F5 (c) providing that the repayable amount is payable in the number of equal annual instalments and on the date in each year determined under subsection (3)(a),

(d) providing that in default of such payment each instalment, together with any amount recoverable in respect of that instalment under subsection (6A), is to be separately recoverable as a debt, and

(e) providing that if immediately after the final instalment falls due any balance of the repayable amount remains unpaid, that balance is immediately due for repayment and is recoverable as a debt.]

(2) The repayable amount is the lowest of—

(a) the amount recoverable under section 59(1) or (2) [F6 , section 61(3A), subsection (6A) below, paragraph 6(1) of schedule 5 or section 4A(5) of the Tenements (Scotland) Act 2004],

(b) any lower amount determined by the local authority, and

(c) any amount which the Scottish Ministers by order prescribe as the maximum repayable amount.

[F7 (3) The local authority must—

(a) determine—

(i) the number of equal annual instalments, being no fewer than 5 and no more than 30, in which the repayable amount is to be paid, and

(ii) the date in each year on which the instalment becomes due, and

(b) notify the owner of its determination under paragraph (a).]

(4) The local authority must register a repayment charge in the appropriate land register.

[F8 (4A) The owner of a property who is liable for the repayable amount does not, by virtue only of ceasing to be such an owner, cease to be liable for the repayable amount.]

(5) The owner of, or any other person interested in, any [F9 property] subject to a repayment charge may at any time redeem the repayable amount early by paying to the local authority—

(a) such sum as the owner or other person may agree with the local authority, or

(b) failing such agreement, such sum as the Scottish Ministers may determine.

(6) The local authority must, on receiving—

(a) payment of the repayable amount in accordance with the repayment charge, or

(b) a sum redeeming the repayable amount under subsection (5),

register a discharge of the repayment charge in the appropriate land register.

[F10 (6A) A local authority may recover—

(a) the amount of any fee payable in respect of registering a repayment charge or a discharge of such a charge,

(b) any administrative expenses incurred by it in connection with the registration, and

(c) interest, at such reasonable rate as it may determine, from the date when a demand for payment is served until the whole amount is paid,

from the owner of the [F11 property] concerned.]

[F12 (6B) Subsection (6A)(c) does not apply where the recoverable amount relates to a sum the local authority is entitled to recover under section 4A(5) of the Tenements (Scotland) Act 2004 (asp 11).]

(7) Where a repayment charge is made in respect of expenses incurred by a local authority in demolishing a house, references in this section and in section 173 to [F13 property] are to be read as references to the site of the demolished house.

(8) This section does not apply in relation to—

(a) the recovery of sums under section 59(2) from a landlord who is not the owner of the [F14 property] concerned,

(b) [F14 property] which is not a building.

[F15 (9) In this section and in section 173, “ property ” means a place which is—

(a) living accommodation, or

(b) non-residential premises within the meaning of section 69(3).]

Textual Amendments

F1 Words in s. 172(1) inserted (1.3.2011) by Housing (Scotland) Act 2010 (asp 17), ss. 150(4)(a), 166(2); S.S.I. 2011/96, art. 2, Sch.

F2 Words in s. 172(1) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 85(2)(a), 104(3); S.S.I. 2015/122, art. 2

F3 Word in s. 172(1) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 90(1)(a), 104(3); S.S.I. 2015/122, art. 2

F4 Word in s. 172(1) repealed (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 91(1)(a)(i), 104(3); S.S.I. 2015/122, art. 2

F5 S. 172(1)(c)-(e) inserted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 91(1)(a)(ii), 104(3); S.S.I. 2015/122, art. 2

F6 Words in s. 172(2)(a) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 85(2)(b), 104(3); S.S.I. 2015/122, art. 2

F7 S. 172(3) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 91(1)(b), 104(3); S.S.I. 2015/122, art. 2

F8 S. 172(4A) inserted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 91(1)(c), 104(3); S.S.I. 2015/122, art. 2

F9 Word in s. 172(5) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 90(1)(b), 104(3); S.S.I. 2015/122, art. 2

F10 S. 172(6A) inserted (1.3.2011) by Housing (Scotland) Act 2010 (asp 17), ss. 150(4)(b), 166(2); S.S.I. 2011/96, art. 2, Sch.

F11 Word in s. 172(6A) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 90(1)(c), 104(3); S.S.I. 2015/122, art. 2

F12 S. 172(6B) inserted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 85(2)(c), 104(3); S.S.I. 2015/122, art. 2

F13 Word in s. 172(7) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 90(1)(d), 104(3); S.S.I. 2015/122, art. 2

F14 Word in s. 172(8) substituted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 90(1)(e), 104(3); S.S.I. 2015/122, art. 2

F15 S. 172(9) inserted (1.4.2015) by Housing (Scotland) Act 2014 (asp 14), ss. 90(1)(f), 104(3); S.S.I. 2015/122, art. 2