Explanatory note

This Order specifies London Scottish Finance Limited and Cheshire Mortgage Corporation Limited (“the Companies”) as approved lending institutions for the purposes of section 156 of the Housing Act 1985 (priority of charges on disposals under the right to buy), in addition to the bodies already specified in that section or in previous orders under that section. The Companies also become approved lending institutions for the purposes of section 36 of the 1985 Act (priority of charges on voluntary disposals by local authorities) and section 12 of the Housing Act 1996 (priority of charges on voluntary disposals by registered social landlords).

As section 156 of the Housing Act 1985 is applied by section 171A of that Act (inserted by the Housing and Planning Act 1986 section 8(1), (3)) to cases in which a tenant’s right to buy is preserved, and by section 17 of the Housing Act 1996 to cases in which a tenant has the right to acquire under section 16 of that Act, the Companies are also approved lending institutions for the purposes of those rights.