Housing Act 1985

Local authority assistance in connection with mortgages E+W

442 Agreement by local authority to indemnify mortgagee. E+W

(1) [F1 A local authority may enter into an agreement with a person or body making an advance on the security of a house (or a building to be converted into a house)] whereby, in the event of default by the mortgagor, and in the circumstances and subject to conditions specified in the agreement, the authority binds itself to indemnify the [F2 mortgagee] in respect of the whole or part of the mortgagor’s outstanding indebtedness and any loss or expense falling on the [F2 mortgagee] in consequence of the mortgagor’s default.

[F3 (1A) The local authority may only enter into the agreement if the advance is for one or more of the purposes specified in subsection (1) [F4 or (1A)] of section 435; and subsections (2) to (4) of that section apply in relation to power to enter into such an agreement as they apply to the power to make an advance under that section.]

(2) The agreement may also, if the mortgagor is made party to it, enable or require the authority in specified circumstances to take a transfer of the mortgage and assume rights and liabilities under it, the [F5 mortgagee] being then discharged in respect of them.

(3) The transfer may be made to take effect—

(a) on terms provided for by the agreement (including terms involving the substitution of a new mortgage agreement or modification of the existing one), and

(b) so that the authority is treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events.

F6 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 442(1) substituted (24.9.1996) for s. 442(1)(a)(b) by 1996 c. 52, ss. 222, 232(2), Sch. 18 Pt. IV para. 27(2)(a)

F2 Words in s. 442(1) substituted (24.9.1996) by 1996 c. 52, ss. 222, 232(2), Sch. 18 Pt. IV para. 27(2)(b)

F3 S. 442(1A) inserted (24.9.1996) by 1996 c. 52, ss. 222, 232(2), Sch. 18 Pt. IV para. 27(3)

F4 Words in s. 442(1A) inserted (18.7.2003) by S.I. 2002/1860, arts. 1(3), 10, Sch. 2 para. 4(4) (with art. 10(3))

F5 Words in s. 442(2) substituted (24.9.1996) by 1996 c. 52, ss. 222, 232(2), Sch. 18 Pt. IV para. 27(4)

F6 S. 442(4)(5) repealed (24.9.1996) by 1996 c. 52, ss. 222, 227, 232(2), Sch. 18 Pt. IV para. 27(5), Sch. 19 Pt. XIV

Modifications etc. (not altering text)

C1 S. 442 amended by Local Government Act 1985 (c. 51, SIF 81:1), s. 57(7), Sch. 13 paras. 22 and 23 as substituted by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), s. 4, Sch. 2 para. 61

S. 442 extended (5.7.1994) by 1994 c. 19, s. 39, Sch. 13 para. 21(d) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2))

443 Local authority contributions to mortgage costs. E+W

(1) A local authority may contribute towards costs incurred by a person in connection with a legal charge which secures, or a proposed legal charge which is intended to secure, a relevant advance made or proposed to be made to him by [F7 any person or body]

F8 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Words in s. 443(1) substituted (24.9.1996) by 1996 c. 52, ss. 222, 232(2), Sch. 18 Pt. IV para. 28(a)

F8 S. 443(2)(3) repealed (24.9.1996) by 1996 c. 52, ss. 222, 227, 232(2), Sch. 18 Pt. IV para. 28(b), Sch. 19 Pt. XIV

Modifications etc. (not altering text)

C2 S. 443 extended (5.7.1994) by 1994 c. 19, ss. 39, 66(2)(b), Sch. 13 para. 21(d) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2))

[F9 444 Relevant advances for the purposes of section 443. E+W

The expression “relevant advance” in section 443 (contributions to mortgage costs) means an advance made to a person whose interest in the house (or building to be converted into a house) on the security of which the advance is made is, or was, acquired by virtue of a conveyance of the freehold, or a grant or assignment of a long lease, by a housing authority.]

Textual Amendments

F9 S. 444 substituted (24.9.1996) by 1996 c. 52, ss. 222, 232(2), Sch. 18 para. IV para. 29