Section 158 Consideration for disposal under section 156AF8
England and Wales
The consideration for such a disposal as is mentioned in section 156A(4) shall be such amount as may be agreed between the parties, or determined by the district valuer, as being the amount which is to be taken to be the value of the dwelling-house at the time when the offer is made (as determined in accordance with regulations under that section).
That value shall be taken to be the price which, at that time, the interest to be reconveyed F2, conveyed, surrendered or assigned would realise if sold on the open market by a willing vendor, on the assumption that any liability under—
the covenant required by section 155 (repayment of discount on early disposal), and
any covenant required by paragraph 1 of Schedule 6A (obligation to redeem landlord’s share where conveyance or grant executed in pursuance of right to acquire on rent to mortgage terms), and
any convenant required by paragraph 6 of Schedule 8 (payment for outstanding share on disposal of dwelling-house subject to shared ownership lease),
would be discharged by the vendor.
If the F4the offer is accepted in accordance with regulations under section 156A, no payment shall be required in pursuance of any such covenant as is mentioned in subsection (2), but the consideration shall be reduced F5, subject to subsection (4), by such amount (if any) as, on a disposal made at the time the offer was made, being a relevant disposal which is not an exempted disposal, would fall to be paid under that covenant.
Where there is a charge on the dwelling-house having priority over the charge to secure payment of the sum due under the covenant mentioned in subsection (2), the consideration shall not be reduced under subsection (3) below the amount necessary to discharge the outstanding sum secured by the first-mentioned charge at the date of the offer to F7(as determined in accordance with regulations under section 156A).
Annotations
Textual amendments
- F1
S. 158(1) substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 188(3)(b)(5)(6), 270(3)(a)
- F2
Words in s. 158(2) substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 188(3)(c)(5)(6), 270(3)(a)
- F3
S. 158(2)(aa) inserted (11.10.1993) by 1993 c. 28, s. 187(1), Sch. 21 para. 15; S.I. 1993/2134, arts. 2, 4(b) (with saving in Sch. 1 para. 4(1)).
- F4
Words in s. 158(3) substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 188(3)(d)(5)(6), 270(3)
- F5
Words inserted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 24(1)(a), Sch. 5 Pt. I para. 1(3)(5)
- F6
S. 158(4) inserted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 24(1), Sch. 5 Pt. I para. 1(3)(5)
- F7
Words in s. 158(4) substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 188(3)(e)(5)(6), 270(3)
- F8
S. 158: words in sidenote substituted (18.1.2005) by Housing Act 2004 (c. 34), ss. 188(3)(a)(5)(6), 270(3)(a)
Notes on Part V
Modifications
- C1
Pt. V (ss. 118–188) amended by Local Government Act 1985 (c. 51, SIF 81:1), s. 57(7), Sch. 13 paras. 22 and 23 as substituted by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), s. 4, Sch. 2 para. 61
- C2
Pt. V (ss. 118–188) modified by S.I. 1986/2092, arts. 3, 6, Sch. 1 (as amended (2.7.2012) by S.I. 2012/1659, art. 1(2), Sch. 3 para. 30 (with arts. 4-6)); S.I. 1987/1732, arts. 3(1), 4(1); S.I. 1989/368, art. 2, Sch. 1; S.I.1990/179, art. 2, Sch. 1
- C3
Pt. V (ss. 118-188) applied (with modifications) (11.10.1993) by S.I. 1993/2240, art. 3, Sch. (as amended (W.) (3.9.2012) by S.I. 2012/2090, art. 1(2), Sch. para. 2)
Pt. V (ss. 118-188) modified (11.10.1993) by S.I. 1993/2241, regs.2, 3, Schs. 1-4 (as amended (W.) (3.9.2012) by S.I. 2012/2090, art. 1(2), Sch. para. 1).
Pt. V (ss. 118-188) modified (1.4.1995) by S.I. 1995/401, art. 18, Sch. para. 8(c)
Pt. V (ss. 118-188): power to modify conferred (1.8.1996) by 1996 c. 52, s. 17(2)(3) (with s. 54(1)); S.I. 1996/2048, art. 2(1)
- C4
Pt. V (ss. 118-188) applied (1.8.1996) by 1996 c. 52, s. 17(2)(3) (with s. 54(1)); S.I. 1996/2048, art. 2(1)
- C5
Pt. V (ss. 118-188) restricted (4.2.1997) by 1996 c. 52, s. 130(4); S.I. 1997/66, art. 2 (subject to savings in Sch.)
- C6
Pt. V modified (1.4.1997) by S.I. 1997/619, regs. 1, 2, Schs. 1, 2 (as amended (W.) (3.9.2012) by S.I. 2012/2090, art. 1(2), Sch. para. 3)
- C7
Pt. V applied by 2008 c. 17, s. 184(2) (as substituted (26.1.2019) by Abolition of the Right to Buy and Associated Rights (Wales) Act 2018 (anaw 1), s. 11(3)(4), Sch. 1 para. 6(6); S.I. 2018/100, art. 2(b) (with art. 3) (with savings in S.I. 2019/110, reg. 5))
- C8
Pt. V amendment to earlier affecting provision S.I. 1997/619, reg. 2, Schs. 1, 2 (3.9.2012) by The Housing (Wales) Measure 2011 (Consequential Amendments to Subordinate Legislation) Order 2012 (S.I. 2012/2090), art. 1(2), Sch. para. 3
- C9
Pt. V amendment to earlier affecting provision S.I. 1993/2240, Sch. (3.9.2012) by The Housing (Wales) Measure 2011 (Consequential Amendments to Subordinate Legislation) Order 2012 (S.I. 2012/2090), art. 1(2), Sch. para. 2
- C10
Pt. V amendment to earlier affecting provision S.I. 1993/2241, Schs. 1, 2 (W.) (3.9.2012) by The Housing (Wales) Measure 2011 (Consequential Amendments to Subordinate Legislation) Order 2012 (S.I. 2012/2090), art. 1(2), Sch. para. 1
- C11
Pt. V amendment to earlier affecting provision S.I. 1986/2092, Sch. 1 Pt. 1 para. 42(a) (2.7.2012) by The British Waterways Board (Transfer of Functions) Order 2012 (S.I. 2012/1659), art. 1(2), Sch. 3 para. 30 (with arts. 4-6)