Housing (Miscellaneous Provisions) Act 2009

Control on resale of apartment subject to a charging order.

76.— (1) In this section references to an apartment purchaser shall not include a person in whom there subsequently becomes vested, for valuable consideration, the interest of the apartment purchaser or the successor in title of that person and the personal representative of that person or successor in title.

(2) Where an apartment purchaser proposes to sell an apartment during the charged period, he or she shall give prior written notice to the housing authority in accordance with the terms and conditions specified in the apartment assignment order.

(3) Upon receipt of a notice referred to in subsection (2), the housing authority may purchase the apartment for a sum equivalent to its current market value, reduced by an amount equal to that proportion of the current market value of the apartment corresponding to the charged share in the apartment on the date of resale.

(4) Without prejudice to any other power in that behalf, a housing authority may refuse to consent to the sale to any person of the apartment where the housing authority is of the opinion that—

(a) the proposed sale price is less than the current market value,

(b) the said person is or was engaged in anti-social behaviour or the sale would not be in the interest of good estate management, or

(c) the intended sale would, if completed, leave the vendor or any person who might reasonably be expected to reside with him or her without adequate housing.

(5) Where an apartment purchaser resells an apartment to a person other than a housing authority during the charged period the apartment purchaser shall pay to the housing authority an amount equal to a percentage of the current market value, such percentage being the equivalent of the charged share of the authority in the apartment on the date of resale of the apartment.

(6) Where the amount payable under any of the provisions of this section would reduce the proceeds of the sale (disregarding solicitor and estate agent’s costs and fees) below the purchase money, the amount payable under the charging order shall be reduced to the extent necessary to avoid that result.

(7) Where a purchaser resells an apartment which is subject to a charging order the charged period of which has expired and in respect of which the amount referred to in section 75 (3) has not been paid in accordance with that section, section 74 (12) applies.

(8) (a) For the purposes of this section, the current market value of an apartment shall be determined by the housing authority or, where the vendor does not agree with the current market value so determined, by an independent valuer nominated by the vendor from a panel of suitably qualified persons, established by the housing authority, who are of a class or description prescribed under section 77 .

(b) The housing authority shall not be liable for any expenses incurred by a vendor under paragraph (a).