|
|
Shared ownership lease: purchase of interest of housing authority in house or sale of house.
|
10.—(1) In this section “purchaser” means a person to whom a shared ownership lease is granted.
|
|
| |
(2) A shared ownership lease shall, subject to subsection (3), be subject to the terms or conditions that the housing authority may specify including terms and conditions relating to:
|
|
| |
(a) notification of the housing authority by the purchaser of the proposed sale of the purchaser's interest in the house;
|
|
| |
(b) the occupation of the house by the purchaser.
|
|
| |
(3) (a) The terms and conditions referred to in subsection (2) shall require, subject to paragraphs (c) and (d), that where a purchaser—
|
|
| |
(i) purchases the interest of the housing authority in the house, or
|
|
| |
(ii) sells his or her interest in the house,
|
|
| |
before the expiration of 20 years from the date of the shared ownership lease, the purchaser shall pay to the housing authority an amount equal to a percentage of the current market value.
|
|
| |
(b) The percentage referred to in paragraph (a) is calculated in accordance with the following formula—
|
| |
|
|
| |
where—
|
|
| |
(i) Y is the difference between the market value of the house at the date of grant of the shared ownership lease, and the sale price of the house used to calculate the payment made by the purchaser in respect of the grant of the shared ownership lease, and
|
|
| |
(ii) Z is the market value of the house at the date of grant of the shared ownership lease.
|
|
| |
(c) The amount payable under paragraph (a) shall be reduced by 10 per cent in respect of each complete year after the 10th year during which the purchaser has been in occupation of the house as his or her normal place of residence.
|
|
| |
(d) (i) Where the amount payable under paragraph (a) would increase the purchase price above the current market value of the house, the amount payable shall be reduced to the extent necessary to avoid that result.
|
|
| |
(ii) In this paragraph “purchase price” means the aggregate of the following payments made by the purchaser to the housing authority in accordance with the terms and conditions of the shared ownership lease—
|
|
| |
(I) the payment made in respect of the grant of the shared ownership lease and, where applicable, any further payments made,
|
|
| |
(II) the payment made on the sale of the house or on the purchase of the interest of the housing authority in the house, and
|
|
| |
(III) the amount payable under paragraph (a).
|
|
| |
(e) (i) In calculating the amount payable under paragraph (a), due allowance shall be made for any material improvements made by the purchaser, and any such allowance shall be deducted from the proceeds of sale before the amount so payable is calculated.
|
|
| |
(ii) In this paragraph “material improvements” means improvements made to the house (whether for the purpose of extending, enlarging, repairing or converting the house), but does not include decoration, or any improvements carried out on the land including the construction of a house.
|
|
| |
(4) Any moneys accruing to a housing authority arising out of—
|
|
| |
(a) the purchase of the interest of the housing authority in a house, or
|
|
| |
(b) the sale of a house,
|
|
| |
under this section shall be used by the housing authority for the provision of housing or for the improvement or refurbishment of existing housing.
|
