Housing (Miscellaneous Provisions) Act 2009
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Charging order. |
86.— (1) As soon as practicable after an affordable dwelling is sold to an eligible household under an affordable dwelling purchase arrangement, the housing authority shall, subject to such regulations as may be made under section 95 , make an order (in this Part referred to as a “ charging order ”) charging the dwelling in the terms specified in this section for the period specified in the order (in this Part referred to as the “ charged period ”) with an amount that shall be expressed in the order in the following terms. | |
(2) The terms referred to in subsection (1) are that the amount charged is— | ||
(a) an amount equal to the difference between the purchase money and the market value of the dwelling, or | ||
(b) in the case of an open market dwelling, the amount of financial assistance provided under section 81 to the eligible household, | ||
expressed as a percentage of the market value calculated in accordance with the following formula: | ||
Yx100 | ||
Z | ||
where— | ||
(i) Y is— | ||
(I) the difference between the purchase money and the market value of the dwelling, or | ||
(II) the financial assistance provided under section 81 to the eligible household, | ||
as the case may be, and | ||
(ii) Z is the market value of the dwelling at the time of sale to the purchaser. | ||
(3) A charge under subsection (1) shall be discharged by the housing authority on the earlier of— | ||
(a) subject to section 90 , the first resale of the dwelling, or | ||
(b) subject to section 87 , the repayment in full of the amount of the charge outstanding under the charging order, or | ||
(c) subject to section 89 , the expiration of the charged period. |