Explanatory note

Where a tenant exercises the right to a mortgage or the right to further advances in connection with his exercise of the right to buy under Part V of the Housing Act 1985 (“the Act”), the landlord (or, if the landlord is a housing association, the Housing Corporation (in England) or Housing for Wales (in Wales)) may charge to him the costs incurred in connection with his exercise of the right to a mortgage or to further advances, to the extent that they do not exceed such amount as the Secretary of State may specify by Order. Article 2 specifies £100 as the maximum amount which may be charged.

Article 3 revokes the Housing (Right to Buy) (Mortgage Costs) Order 1980 which specified £50 as the maximum amount. The revocation does not apply in cases where a notice claiming to exercise the right to a mortgage or the right to a further advance is served before the coming into force of this Order.