Explanatory note

Under the Housing Act 1985 (“the 1985 Act”) liability to repay discount following the exercise of the right to buy is secured by a charge on the dwelling-house. Such charges do not have priority over certain charges securing advances by approved lending institutions.

This Order specifies five additional bodies as approved lending institutions for the purposes of section 156 of the 1985 Act. Such bodies are also approved lending institutions for the purposes of section 36(4) of the 1985 Act and paragraph 2(4) of Schedule 2 to the Housing Associations Act 1985 (c. 69) dealing with voluntary disposals at a discount by local authorities and housing associations respectively.