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Housing Act 1988

Changes over time for: Cross Heading: Repayment of discount on early disposal

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Repayment of discount on early disposalE+W

1(1)This paragraph applies where, on the disposal of a house under section 79 of this Act, a discount is given to the purchaser by the housing action trust in accordance with a consent given by the Secretary of State under subsection (1) of that section and that consent does not exclude the application of this paragraph.E+W

(2)On the disposal, the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title [F1to the following effect.]

[F2(3)The covenant shall be to pay to the housing action trust such sum (if any) as the trust may demand in accordance with sub-paragraph (4) on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the conveyance, grant or assignment.]

[F3(4)The trust may demand such sum as it considers appropriate, up to and including the maximum amount specified in this paragraph.]

[F4(5)The maximum amount which may be demanded by the trust is a percentage of the price or premium paid for the first relevant disposal which is equal to the percentage discount given to the purchaser in respect of the disposal of the house under section 79.]

[F5(6)But for each complete year which has elapsed after the conveyance, grant or assignment and before the first relevant disposal the maximum amount which may be demanded by the trust is reduced by one-fifth.]

[F6(7)Sub-paragraphs (4) to (6) are subject to paragraph 1A.]

Textual Amendments

F1Words in Sch. 11 para. 1(2) substituted (18.1.2005) by Housing Act, 2004 (c. 34), ss. 203(2), 270 (with s. 203(4))

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