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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 12

The Preserved Right to Buy:
Cancellation of entries relating to the preserved right to buy:

Entries relating to the preserved right to buy for any particular qualifying dwellinghouse will be cancelled by the Land Registry provided the statements listed below are included by the Property Lawyers and Conveyancing Solicitors in the Transfer or Lease:

- Where there is a sale to the Tenant under the preserved right to bu, the disposition must contain the following statement, or one to like effect, prominently in the instrument:
'This [Transfer] [Lease] is to a qualifying person and is made in pursuance of the provisions of Part V of the Housing Act 1985 as they apply by virtue of section 171A of that Act'

Where there is a sale to the Tenant who has the benefit of the preserved right to buy but not actually under those provisions, e.g. on terms similar to voluntary disposals of Council houses and the preserved right to buy ceases to exist, the disposition must contain the following statement, or one to like effect, prominently in the instrument:
'This [Transfer] [Lease] is to a qualifying person but is not made in pursuance of the right to buy and the Land [transferred] [leased] ceases to be subject to any rights arising under Part V of the Housing Act 1985'

-Where the Land / Property is transferred to a public sector Landlord (i.e. a person who satisfies the Landlord condition for secure tenancies) the transfer or Lease must contain the following statement, or one to like effect, prominently in the instrument:
'Under the provisions of section [171D(1)(a)] [171E(2)(a)] Housing Act 1985 the Land / Property [transferred] [leased] ceases as a result of this [transfer] [lease] to a person who comes within section 80(1) of that Act to be subject to any rights arising by virtue of section 171A of that Act'

Further cancellation provisions:
(i) If Land / Property ceased to be subject to a preserved right to buy, for example because the Tenant has quit and the new Tenant, if any, does not have the preserved right to buy, the Landlord should instruct Property Lawyers and Conveyancing Solicitors to apply for cancellation of the entries relating to the preserved right to buy. The application must be made in forms CN1 and (if no Land in the title remains subject to the preserved right to buy) RX3, supported by a certificate in form PSD 103. A wrongful application which leads to a claim against the Land Registry will make the Landlord liable to indemnify the Land Registry.

(ii) If the Landlord's registered interest has determined, the title will be closed on application. The entries relating to the preserved right to buy will be carried forward to the title to the superior interest (assuming it is registered) unless:
- the termination of the Landlord's interest results from a transfer to a public sector Landlord and the transfer contains the last of the three statements set out under the heading: Cancellation of entries relating to the preserved right to buy above; or
- the Property Lawyers and Conveyancing Solicitors for the applicant apply for cancellation of the entries on the basis that the right to buy has ceased to be preserved, in which case the entries will simply be cancelled. The application must be in form CN1 and (if no Land / Property in the title remains subject to the preserved right to buy) RX3, supported by a certificate in form PSD 103.

Whether the right to buy ceases to be preserved in such circumstances depends on the detailed provisions of section 171E of the Housing Act 1985.

Land Charge Cancellation:
In no circumstances will there be automatic cancellation of entries in the Land Charges Department. The usual application will have to be made for cancellation by Property Lawyers and Conveyancing Solicitors for the person having the benefit of the entries.

Exercise of the preserved right to buy by a qualifying person:
In most cases when a qualifying person having the preserved right to buy exercises that right, the Land / Property will already be registered. However, where the Tenant / qualifying person has been moved by the Landlord it is possible that the qualifying dwellinghouse is unregistered. The Landlord must give the Tenant the appropriate Certificate of Title in such cases. These are as follows:
- PSD 13 - for use where the estate / development being conveyed is freehold;
- PSD 14 - for use where a new Lease is being granted out of the Landlord's freehold;
- PSD 15 - for use where a new Lease is being granted out of the Landlord's existing leasehold title.

The conveyance or Lease must contain the first statement referred to under the heading: Cancellation of entries relating to the preserved right to buy above.

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

. . . continued on page 14 (Property Lawyers and Conveyancing Solicitors in Manchester City Centre page 14)

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
Fax: 0161 866 8333
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