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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 8

Points to consider:

Restrictions on other disposals (e.g. Sales / Transfers):
Land Registry reserves the right to require the applicant to obtain confirmation from a Seller or the Seller's Property Lawyers and Conveyancing Solicitors that the transaction falls within the consent and, in particular, that any conditions set out in the consent, such as valuation or notification to Tenants, have been complied with. Such confirmation is particularly likely to be required where the consent is a general consent by the Secretary of State or National Assembly for Wales. The confirmation is required to ensure that a disposition which needs consent is not registered by mistake. If the conditions have not been complied with, it is likely that the transaction is not within the consent and may therefore be void.

Land Registry will generally accept a copy of the consent certified by Property Lawyers and Conveyancing Solicitors as a true copy in place of the original.

In the case of disposals of Land and Property owned by a housing action trust, the Land / Property itself may not be registered. A Trust may acquire its Land / Property by statutory vesting and may not have registered it. Where it has not been registered, it will need to be registered on a disposal (e.g. sale or transfer) by the trust under the normal provisions (section 4 Land Registration Act 2002).

The Land Registry will require similar evidence on the registration of the disposition as if the Land / Property was registered, but certain additional requirements are imposed on sales by housing action trusts and these are as follows:

Sales of a single house under voluntary provisions:
Unlike the right to buy provisions, where a housing action trust has been added to the list of Landlords against whom such provisions operate, special provision is made for voluntary disposals of Land / Property by housing action trusts. Where consent is given by the Secretary of State or National Assembly for Wales and that consent allows sales at a discount and does not 'exclude' the imposition of a discount charge, the usual obligation to repay the whole or part of any discount on early disposal and the charge to secure the obligation apply.

There are no provisions requiring the Property Lawyers and Conveyancing Solicitors for the housing action trust to give a Certificate of Title under such voluntary sales to the Purchaser.

These provisions are very similar to those contained in Part II Housing Act 1985. However, if the housing action trust imposes a discount charge under these provisions, the disposition must make it clear that the trust is acting under its powers under schedule 11 Housing Act 1988 so that the appropriate entry may be made in the charges register (Property Title Deeds).

The form of the entry will follow that of the entry of the discount under Part V Housing Act 1985 but with reference to section 79(13) and Schedule 11, Housing Act 1988. Cancellation of the discount charge will be dealt with by Land Registry in the same way as discount charges under the Housing Act 1985.

Disposals of houses subject to a secure tenancy:
There are special provisions on the disposal (e.g. sale or transfer) of a house or flat which is subject to a secure tenancy immediately before the disposal. Although the legislation refers to a house or flat, it is in fact more likely to be appropriate to sales of an estate / development or part estate / part development and the following discussion assumes this to be the case.

The purpose of the legislation is to protect the tenant as the tenancy moves from being a tenancy in the public sector to one which may be in the private sector.

This is does by:
- requiring that such Transfers can only to be approved persons; and
- (to ensure that such persons cannot then dispose of the Property to unapproved persons) providing that there cannot be a further disposal without the Property Lawyers and Conveyancing Solicitors first obtaining the consent of the Secretary of State or National Assembly for Wales.

There is an exemption for transfers falling within Part V of the Housing Act 1985 (the right to buy). These provisions can be contrasted with the preserved right to buy provisions which protect a specific right of such a tenant to buy his or her house of flat. The two regimes can, and often will, run in parallel in the same transaction.

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

. . . continued on page 10 (Property Lawyers and Conveyancing Solicitors in Manchester City Centre page 10)

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