Housing (Miscellaneous Provisions) Act 2009

Payments by purchaser during charged period.

87.— (1) A purchaser of a dwelling under an affordable dwelling purchase arrangement which is subject to a charging order may, subject to subsection (3), at any time or times after the fifth anniversary of the date of sale of the dwelling to the purchaser but during the charged period, make a payment or payments to the housing authority concerned.

(2) Where a purchaser makes a payment under this section the amount of the charge outstanding under the charging order shall be reduced accordingly in the manner specified in subsection (5).

(3) A payment made under this section shall not be less than the amount prescribed for the purposes of this section.

(4) A purchaser who proposes to make a payment under this section shall notify the housing authority in writing in the prescribed form specifying the amount of the proposed payment.

(5) As soon as practicable but not later than one month after receipt of a notification under subsection (4), the housing authority shall give a written statement to the purchaser—

(a) setting out the market value or, where material improvements have been carried out, the net market value of the dwelling, determined by the housing authority, such valuation being taken as the prevailing market value or prevailing net market value for the purposes of paragraph (c),

(b) advising the purchaser whether the condition specified in subsection (3) is satisfied, and

(c) where the condition specified in subsection (3) is satisfied and taking account of the amount of the proposed payment, setting out the amount of the charge which shall remain outstanding under the charging order following such payment, which amount shall be calculated in accordance with the following formula:

Y-Z%

where—

(i) Y is the amount of the charge specified in the charging order or in any previous statement given under this subsection, and

(ii) Z is the percentage which the sum paid under subsection (1) represents of the prevailing market value of the dwelling or, where material improvements have been made to the dwelling by the purchaser, the prevailing net market value of the dwelling, referred to in paragraph (a).

(6) The statement given under subsection (5) is valid for 3 months from the date thereof and any payment made after the expiry of that period pursuant to that statement shall be treated as a new notification under subsection (4) and this section shall apply to such notification accordingly.

(7) Where the housing authority receives a payment under this section from the purchaser which is equivalent to the amount of the charge outstanding under the charging order, the housing authority shall discharge the charge.

(8) Subject to section 92 , where a payment is made under this section, the housing authority shall be liable for any expenses, including in respect of the valuation of the dwelling, incurred under this section.