Source: http://www.legislation.gov.uk/ukpga/1988/50/schedule/11
Timestamp: 2019-07-20 02:10:51
Document Index: 643240085

Matched Legal Cases: ['art. 2', 'art 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 2']

Housing Act 1988, SCHEDULE 11 is up to date with all changes known to be in force on or before 20 July 2019. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
SCHEDULE 11E+W Provisions Applicable to Certain Disposals of Houses
[F7Increase in value of house attributable to home improvementsE+W
F7Sch. 11 para. 1A and cross-heading inserted (18.1.2005) by Housing Act (c. 34), {ss. 203}, 270 (with s. 203(4))
Obligation to repay a charge on the houseE+W
2(1)The liability that may arise under the covenant required by paragraph 1 above is a charge on the house, taking effect as if it had been created by deed expressed to be by way of legal mortgage.E+W
(2)The charge has priority immediately after any legal charge securing an amount—
(a)left outstanding by the purchaser; or
(b)advanced to him by an approved lending institution for the purpose of enabling him to acquire the interest disposed of on the first disposal; or
(c)further advanced to him by that institution;
but the housing action trust may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this paragraph to a legal charge securing an amount advanced or further advanced to the purchaser by that institution.
(4)The covenant required by paragraph 1 above does not, by virtue of its binding successors in title of the purchaser, bind a person exercising rights under a charge having priority over the charge taking effect by virtue of this paragraph, or a person deriving title under him; and a provision of the conveyance, grant or assignment, or of a collateral agreement, is void in so far as it purports to authorise a forfeiture, or to impose a penalty or disability, in the event of any such person failing to comply with the covenant.
(5)The approved lending institutions for the purposes of this paragraph are—
(b)a bank;
(c)an insurance company;
(d)a friendly society; and
[F9(e)an authorised mortgage lender (within the meaning of the Housing Act 1985 (see section 622 of that Act)).]
F8Sch. 11 para. 2(3) repealed (13.10.2003) by Land Registration Act 2002 (c. 9), ss. 135, 136(2), Sch. 13 (with s. 129); S.I. 2003/1725, art. 2(1)
F9Sch. 11 para. 2(5)(e) substituted (22.9.2008) by Housing and Regeneration Act 2008 (c. 17), ss. 307(6), 325
[F10Right of first refusal for housing action trustE+W
F10Sch. 11 paras. 2A, 2B and cross-headings inserted (18.1.2005) by Housing Act 2004 (c. 34), ss. 204, 270 (with s. 204(3))
2A(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
Consideration payable for disposal under paragraph 2AE+W
2B(1)The consideration for a disposal made in respect of a right of first refusal as mentioned in paragraph 2A(5) shall be such amount as may be agreed between the parties, or determined by the district valuer, as being the amount which is to be taken to be the value of the house at the time when the offer is made (as determined in accordance with regulations under that paragraph).E+W
(4)Where there is a charge on the house having priority over the charge to secure payment of the sum due under the covenant mentioned in sub-paragraph (2), the consideration shall not be reduced under sub-paragraph (3) below the amount necessary to discharge the outstanding sum secured by the first-mentioned charge at the date of the offer (as determined in accordance with regulations under paragraph 2A).]
Relevant disposalsE+W
Exempted disposalsE+W
4(1)A disposal is an exempted disposal for the purposes of this Schedule if—E+W
(a)it is a disposal of the whole of the house and a conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person (as defined in sub-paragraph (2) below);
[F11(c)it is a disposal of the whole of the house in pursuance of an such order as is mentioned in sub-paragraph (4) below;]
(d)it is a compulsory disposal; or
(e)the property disposed of is property included with the house as being such a yard, garden, outhouse or appurtenance as is referred to in section 92(1)(b) of this Act.
(2)For the purposes of sub-paragraph (1)(a) above, a person is a qualifying person in relation to a disposal if—
(a)he is the person or one of the persons by whom the disposal is made;
(b)he is the spouse or a former spouse [F12, or the civil partner or a former civil partner,] of that person or one of those persons; or
(3)Section 186 of the M1Housing Act 1985 applies to determine whether a person is a member of another person’s family for the purposes of sub-paragraph (2)(c) above.
[F13(4)The orders referred to in sub-paragraph (1)(c) above are orders under—
(c)section 17 of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.),F14. . .
(d)paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents) [F15, or]
[F15(e)Part 2 or 3 of Schedule 5, or paragraph 9 of Schedule 7, to the Civil Partnership Act 2004 (property adjustment orders, or orders for the sale of property, in connection with civil partnership proceedings or after overseas dissolution of civil partnership, etc.).]]
F11Sch. 11 para. 4(1)(c) substituted (1.10.1996) by 1996 c. 52, s. 222, Sch. 18 Pt. III para. 19(2); S.I. 1996/2402, art. 3 (subject to transitional provisions in Sch.)
F12Words in Sch. 11 para. 4(2)(b) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 81, 263, {Sch. 8 para. 45(1)(2}); S.I. 2005/3175, art. 2(1), Sch.1
F13Sch 11 para. 4(4) added (1.10.1996) by 1996 c. 52, s. 222, Sch. 18 Pt. III para. 19(3); S.I. 1996/2402, art. 3 (subject to transitional provisions in Sch.)
F14Words in Sch. 11 para. 4(4) repealed (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 81, 261(4), Sch. 30; S.I. 2005/3175, art. 2(1), Sch. 1
F15Sch. 11 para. 4(4)(e) and word inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 81, 263, Sch. 8 para. 45(1)(3); S.I. 2005/3175, art. 2(1), Sch.1
Compulsory disposalE+W
5In this Schedule a “compulsory disposal” means a disposal of property which is acquired compulsorily, or is acquired by a person who has made or would have made, or for whom another person has made or would have made, a compulsory purchase order authorising its compulsory purchase for the purposes for which it is acquired.
Exempted disposals ending obligation under covenantsE+W
6Where there is a relevant disposal which is an exempted disposal by virtue of paragraph 4(1)(d) or paragraph 4(1)(e) above—
(a)the covenant required by paragraph 1 above is not binding on the person to whom the disposal is made or any successor in title of his; and
(b)that covenant and the charge taking effect by virtue of paragraph 2 above cease to apply in relation to the property disposed of.
[F16and
(d)that covenant ceases to apply in relation to the property disposed of.]
F16Sch. 11 para. 6(c)(d) and word inserted (18.1.2005) by Housing Act 2004 (c. 34), ss. 204(2), 270 (with s. 204(3))
Treatment of optionsE+W
7For the purpose of this Schedule, the grant of an option enabling a person to call for a relevant disposal which is not an exempted disposal shall be treated as such a disposal made to him.
[F17Treatment of deferred resale agreementsE+W
F17Sch. 11 para. 8 and cross-heading inserted (18.11.2004 for certain purposes and otherwise 18.1.2005) by Housing 2004 (c. 34), {ss. 205(1)}, 270 (with 205(2))
8(1)If a purchaser or his successor in title enters into an agreement within sub-paragraph (3), any liability arising under the covenant required by paragraph 1 shall be determined as if a relevant disposal which is not an exempted disposal had occurred at the appropriate time.E+W
“the discount repayment period” means the period of 3 years that applies for the purposes of paragraph 1(2) or the period of five years that applies for the purposes of paragraph 1(3)(depending on whether an offer such as is mentioned in section 203(4) of the Housing Act 2004 was made before or on or after the coming into force of that section).]