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Regulation 18 Covenants under section 103

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

An applicant may in all circumstances inform the landlord that he wishes to enter into a prescribed covenant in accordance with section 103(1).

(2)

The covenant prescribed for the purposes of section 103(1) is a covenant in writing by the applicant to pay the landlord an amount determined in accordance with paragraph (4) on the occasion of any prescribed disposal occurring not more than 15 years after the time of acquisition.

(3)

A disposal of a dwelling-house to a tenant of that dwelling-house is a disposal prescribed for the purposes of section 103(1)(a).

(4)

The amount referred to in paragraph (2) is 65 per cent., or such other percentage as may be agreed by the parties, of the total consideration for the disposal of the dwelling-house by the applicant.