3(1)This paragraph applies where immediately before the appropriate time any flat contained in the specified premises is let by a housing association under a tenancy other than a secure tenancy and—
(a)the housing association is the freeholder, and
(b)the tenant is not a qualifying tenant of the flat.
(2)Where this paragraph applies, the nominee purchaser shall grant to the freeholder (that is to say, the housing association) a lease of the flat in accordance with section 36 and paragraph 4 below.
(3)In this paragraph any reference to a flat includes a reference to a unit (other than a flat) which is used as a dwelling.