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Property Lawyers and Conveyancing Solicitors in Manchester City Centre for Transfer of Public Sector Housing Estates

Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLY

Transfers of Public Sector Housing Estates

. . . continued from page 9

Points to consider:

Restrictions on other disposals (e.g. Sales / Transfers):

Disposals of houses subject to a secure tenancy:
The following is a paraphrased list of exempt subsequent disposals of Property for which no consent is required. However, it does not include disposals permitted under the preserved right to buy provisions which, although they are similar, are not the same and are discussed under the heading: The disposal subject to preserved right to buy.
- the disposal (e.g. sale, transfer) of a house to a person having the right to buy under Part V of the Housing Act 1985, whether the disposal is in fact made under that part or otherwise. This exemption will extend to cases where the preserved right to buy operates (see Housing (Preserved Right to Buy) Regulations 1993) or under the Housing (Extension of Right to Buy) Order 1987;
- a compulsory disposal (e.g. sale, transfer) within the meaning of Part V of the Housing Act 1985. This is defined in section 161 of that Act. Essentially, this should be taken by Property Lawyers and Conveyancing Solicitors as a disposal made under any compulsory purchase provisions;
- the disposal (e.g. sale, transfer) of an easement or rentcharge;
- the disposal (e.g. sale, transfer) of an interest by way of security for a loan. See section on Mortgage after acquisition by the Purchaser.
- the transfer of an interest held on trust for any person whether the disposal (e.g. sale, transfer) is made in connection with the appointment of a new trustee or in connection with the discharge of any trustee.

In addition to the above exempt disposals there is one further circumstance where consent will not be required. This is where the proprietor of the Property loses it by operation of law or by an Order of the Court and the Property passes, or is transferred, to another person. In these cases new owners will be registered but subject to the same restriction.

Where the proprietor is registered with a restriction preventing the disposal of an interest without the consent of the Housing Corporation or National Assembly for Wales, this restriction may be ignored by Property Lawyers and Conveyancing Solicitors if consent is given by the Secretary of State under one of the restrictions set out under the heading: The consents from the Secretary of State or National Assembly for Wales and the restrictions which enforce them.

The Land Registry will usually make one non-statutory, and wholly discretionary, exception to the need for consent. This is where the registered proprietor certifies that the Property comprised in a disposition (whether transfer of part or Lease or transfer of whole) is Property which, whilst it was originally included as part of a larger parcel which contained houses on which the restrictions on further disposal operate, has never been subject to such restrictions. This is intended to cover the situation where, for example, houses around a green were disposed of with the green in one original transfer, so that they were registered under a single title with a restriction, and there is a subsequent disposal (e.g. sale, transfer) of part of the green. In such circumstances the certificate that the Property / Land in question had never been affected by the restriction will need to be signed by the Property Lawyers and Conveyancing Solicitors for the registered proprietor.

The Preserved Right to Buy:

The consent from the Secretary of State or National Assembly for Wales and the restrictions which enforce them:

In the above section, headed: Points to Consider, reference is made to the arrangement under which Tenants may be protected against the actions of an indifferent private sector Landlord by a system of approval for the new Landlord and its immediate successor. This protection is in relation to the general nature of the tenancy. The preserved right to buy is a specific right of a former tenant of a public sector Landlord to have one of his rights as a tenant preserved against a social or private sector Landlord, namely the right to buy the freehold or a Lease under Part V, Housing Act 1985.

A tenant will generally cease to be a secure tenant when his Landlord's interest in his house is transferred to a Landlord which does not fall within the class of public sector Landlords set out in the Housing Act 1985.

The class of public sector Landlords currently includes:
- a local authority (e.g. Manchester, Bury, Trafford, Salford, Stockport)
- a new town corporation;
- a housing action trust;
- an urban development corporation;
- the Housing Corporation;
- the Secretary of State;
- a housing trust which is a charity;
- a housing association or housing co-operative to which section 80(4) of the Housing Act 1985 applies;
- a registered social Landlord other than a co-operative housing association;
- a co-operative housing association which is not a registered social Landlord.

A new 'right to acquire' is conferred upon certain Tenants of registered social Landlords by section 16 of the Housing Act 1996.

(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)

. . . continued on page 11 (Property Lawyers and Conveyancing Solicitors in Manchester City Centre page 11)

If you require any further information please telephone 0161 866 8999 and we will be happy to help.

Ford Banks Irwin Solicitors
50 Stothard Road
Manchester
M32 9HB

Tel: 0161 866 8999
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E-mail: info@FordBanksIrwinSolicitors.co.uk

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Property Lawyers and Conveyancing Solicitors in Manchester City Centre for Transfer of Public Sector Housing Estates