Section 38 Relevant disposals.

(1)

A disposal, whether of the whole of part of the house, is a relevant disposal for the purposes of this Part if it is—

(a)

a conveyance of the freehold or an assignment of the lease, or

(b)

the grant of a lease of sub-lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack rent.

(2)

For the purposes of subsection (1)(b) it shall be assumed—

(a)

that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised, and

(b)

that any option to terminate a lease or sub-lease is not exercised.

Notes on Part II

C1: Pt. II (ss. 8–57): power to apply certain functions conferred by Housing Act 1988 (c. 50, SIF 61), s. 65(2)(a)(4)
C2: Pt. II (ss. 8-57) restricted (19.8.1996) by 1996 c. 49, s. 9(4)(a); S.I. 1996/2127, art. 2, Sch. Pt. I