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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 4

Points to consider:

The consents from the Secretary of State or National Assembly for Wales and the restrictions which enforce them:
Once the extent of the estate / development disposal has been agreed, the Property Lawyers and Conveyancing Solicitors will usually need to obtain the consent of the Secretary of State or National Assembly for Wales to the disposal. This section deals with the relevant provisions:

There are two distinct consents:
- the 'initial consent' to the disposal of the estate / development by the initial vendors (e.g. local authorities such as Manchester, Bury, Trafford, Salford, Stockport) and
- 'subsequent consent' to a disposal out of that estate by the Purchaser

Initial consents will usually contain provisions which allow the disposal of assets (Property or Development Land) with the subsequent consent of the Secretary of State or National Assembly for Wales.

Initial Consents:
Initial Consents from the Secretary of State or National Assembly for Wales will be required for any disposal of housing by local authorities (e.g. Manchester, Bury, Trafford, Salford and Stockport) or housing action trusts (such as a Housing Association).

Subsequent consent, required statements and restrictions:
Sales (Disposals) by Local Authorities (e.g. Manchester, Bury, Trafford, Salford and Stockport):
Where an initial consent was required for the initial sale (disposal) under section 32 or 43 of the Housing Act 1985, and that consent did not otherwise provide, the subsequent sale (disposal) generally requires a further consent. It will usually do so. However, such consent may provide that only some of the houses on the estate / development are subject to this further restriction on sale (disposition). If this is the case then they should be listed in the Property Title Deeds. If convenient this can be done negatively by Property Lawyers and Conveyancing Solicitors, i.e. the whole development (estate) can be stated to be subject to the restriction save for e.g. numbers 1 to 21 (incl) Manchester Road. It is important to be accurate in identifying any such Properties by making it clear, for example, whether or not they include even or odd numbers or both.

Where there is a requirement for a subsequent consent the approval form of the required statement in the disposal deed (transfer deed, Lease, Conveyance etc.) is as follows:
'The requirement of section 133 of the Housing Act 1988 for the consent of the [Secretary of State] [National Assembly for Wales] to disposals of [the Property] [the following Properties] in this [Conveyance] [Transfer] [Assignment] [Lease] applies to a subsequent disposal of the said Property or Properties by the [Purchaser] [Lessee]. The [Purchaser] [Lessee] hereby applies to the Chief Land Registrar for the entry of a restriction in form X'

The restriction will be entered in the Proprietorship Register in form X, as follows:
"RESTRICTION: No disposition by the Proprietor of the registered estate (Property) or in exercise of the power of sale or leasing in any registered charge (mortgage) (except an exempt disposal as defined by section 81(8) of the Housing Act 1988) is to be registered without the consent of the [Secretary of State] [National Assembly for Wales] to that disposition under the provisions of section 133 of that Act"

Disposals (Sales) by housing action trusts under section 79 of the Housing Act 1988:
A housing action trust is a public sector landlord and thus subject to the right to buy. Its powers of disposal of a house subject to a secure tenancy are limited by section 79(2) of the Housing Act 1988. The sale must be either to an 'approved person' or to a housing authority or other local authority (e.g. Manchester, Bury, Trafford, Salford and Stockport). If the sale is to an approved person, the requirement in section 81 of the Housing Act 1988 that the consent of the Secretary of State be obtained to any subsequent disposal of the house by the approved person applies. The disposal (sale) deed must state that the requirement applies to any such disposal. The recommended form of the 'required statement' used by Property Lawyers and Conveyancing Solicitors is as follows:
"The requirement of section 81 of the Housing Act 1988 for the consent of the [Secretary of State] [National Assembly for Wales] to disposals of the Land in this [Conveyance] [Transfer] [Assignment] [Lease] applies to a subsequent disposal of the said Land by the [Purchaser] [Lessee]. The [Purchaser] [Lessee] hereby applies to the Chief Land Registrar for the entry of the restriction in form X"

A restriction in form X will be entered in the Property Title Deeds (Proprietorship Register) as above but substituting section 81 of that Act for section 133.

If a disposal comprises both houses subject to secure tenancies and other houses or Land, Property Lawyers and Conveyancing Solicitors should use two instruments, one relating to the houses subject to secure tenancies and containing the required statement, the other relating to the other houses or Land. The former will be registered with the appropriate restriction under a separate title number by Land Registry.

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

. . . continued on page 6 (Property Lawyers and Conveyancing Solicitors in Manchester City Centre page 6)

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

Ford Banks Irwin Solicitors
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M32 9HB

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