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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 10

The Preserved Right to Buy:
The specific right:

Under the normal right to buy a secure Tenant (broadly speaking, the Tenant of a public sector Landlord) 'takes' with him or her the right to buy whatever Property he or she may currently occupy, and this right will go on even if during the time the Tenant is a secure Tenant, he or she moves - from a house, to a flat and back to a house, for example. The right is not confined to one particular house or flat. However, once a Tenant is no longer a secure Tenant, the right to buy crystallizes against the house currently occupied. This right then becomes the preserved right to buy and it is noted as a burden against the particular Property for Property Lawyers and Conveyancing Solicitors. In certain circumstances the new Landlord is given the right to move the Tenant, and the right then applies to the new Property. The old entry must then be cancelled and a new one made. Similarly, if the right ceases to exist (for example, because the Tenant dies and there is no succession to the right) the entry may be cancelled. It is the package of rights that this section describes.

The Legislation and Transitional Arrangements:
In this section the references are to Part V of the Housing Act 1985 as it applies by virtue of the Housing (Preservation of Right to Buy) Regulations 1993. These Regulations contain the complete code for the preserved right to buy.

The Housing (Preservation of Right to Buy) Regulations 1993 replaced almost identical 1989 Regulations except for cases where notice to exercise the preserved right to buy was served before 11 October 1993.

The disposal (e.g. sale, transfer) subject to preserved rights to buy:
The preserved right to buy will come into operation for Property Lawyers and Conveyancing Solicitors whenever there is a disposal (e.g. sale, transfer) of a house subject to a secure tenancy to a person who does not satisfy the Landlord condition for the creation of a secure tenancy and the secure tenancy thereby ceases to be such. 'There may well therefore be two separate regimes governing any particular house', e.g. the voluntary disposal regime and the preserved right to buy regime. In certain crucial areas, particularly the creation of a mortgage by the new Landlord, the regimes do 'not' coincide; a consent may be required by Property Lawyers and Conveyancing Solicitors under one regime but not under another. (As discussed in the section headed: The consents from the Secretary of State or National Assembly for Wales and the restrictions which enforce them). It is also the case that there are Landlords in respect of which the preserved right to buy may be the only regime that operates.

The qualifying disposal, which may be a conveyance, transfer or Lease, must:
- contain a statement that it is a disposal to which section 171A of the Housing Act 1985 applies. The form used by most Property Lawyers and Conveyancing Solicitors is as follows:
'Section 171A of the Housing Act 1985 applies to this Deed so far as it relates to dwellinghouses occupied by secure Tenants. The [Purchaser] [Lessee] applies for entry of the notice and restriction required by paragraph 4 of Schedule 9A to that Act'
- list, to the best of the Seller's knowledge and belief, the houses occupied by secure Tenants. This list should be drawn up by Property Lawyers and Conveyancing Solicitors, preferably in a schedule to the instrument, in numerical order. Normally all houses must be listed separately. However, it is permissible to list them as 'Nos 1-15 (odd) Manchester Road', or to say 'all numbers' , provided that it is clear exactly what the addresses of the Properties are
- be registered at Land Registry, in the case of a Lease, regardless of the length of the Lease,
- where the Land / Property is unregistered, or where the dominant Land / Property is registered but the instrument grants rights over unregistered Land / Property, be accompanied by a Certificate of Title in form PSD 17.

The entries on the register (Property Title Deeds) of a title subject to preserved rights to buy:
The Land Registry has a duty to make entries on the register (Property Title Deeds) reflecting the statements made by Property Lawyers and Conveyancing Solicitors in the instrument. This will be done in the Charges Register and except where only one or two houses are involved (where no schedule will be created), the entry will take the following form:
'Such dwellinghouses as are listed below are the subject of a preserved right to buy entered on the date shown in favour of qualifying persons within the meaning of Part V of the Housing Act 1985 as it applies by virtue of regulations under section 171C of that Act

Item No. Description of Qualifying Dwellinghouses Date of Entry of Notice'

A specimen entry might look like this:

Item No. Description of Qualifying Dwellinghouses Date of Entry of Notice

1 3 Manchester Gardens 1.5.1991
2. 4 Manchester Gardens 1.5.1991
3. 5 Manchester Gardens 1.5.1991
4. 27 Altrincham Road 1.5.1991
5. 32 Altrincham Road 1.5.1991
6. 42 Altrincham Road 1.5.1991

This is an example of an alphanumeric entry. Since on very large estates / developments, there may well be considerable changes in the Properties subject to preserved rights to buy, Land Registry considers that it is helpful to all concerned if this method is used.

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

. . . continued on page 12 (Property Lawyers and Conveyancing Solicitors in Manchester City Centre page 12)

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

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