Article 2 Transfer of mortgage interests, etc

(1)

On the transfer date —

(a)

any interest of the Residuary Body as mortgagee in respect of any mortgage referred to in paragraph (2); and

(b)

any interest of that Body (whether as freehold owner, lessor, or mortgagee) in any house which is the subject of an equity-sharing agreement, other than a house at Thamesmead,

shall vest in Richmond.

(2)

The mortgages referred to in paragraph (1)(a) are mortgages on any house for securing any housing advance or any amount left outstanding on terms which enable repayments to be deferred.

(3)

Subject to article 3, all functions of the Residuary Body, and all rights acquired and liabilities incurred by that Body in connection with any interest vested by paragraph (1) shall on the transfer date become functions of or, as the case may be, vest in or be discharged by Richmond.

(4)

The right of the Residuary Body to enforce any covenant required by section 35 or required by or imposed by virtue of section 155 of the Housing Act (repayment of discount on early disposal)^f1 or a covenant to similar effect shall on the transfer date vest in Richmond.

(5)

All rights and liabilities of the Residuary Body in connection with or arising in consequence of the exercise by the Residuary Body before the transfer date of a mortgagee’s power of sale shall on that date vest in or, as the case may be, be discharged by Richmond.

(6)

All rights and liabilities of the Residuary Body pursuant to any agreement made under section 442 of the Housing Act (agreement by local authority to indemnify mortgagee) shall vest in or, as the case may be, be discharged by Richmond.

(7)

All records relating exclusively to any matter transferred to Richmond by paragraphs (1) and (3) to (6) shall vest in Richmond.

Annotations

Footnotes

f1: Sections 35 and 155 of the Housing Act 1985 were amended by section 2(3) of the Housing and Planning Act 1986 (c. 63). Part V of the Housing Act 1985 continues to apply where there has been a disposal by a landlord which is a residuary body;see article 3(1) of the Local Government Reorganisation (Preservation of Right to Buy) Order 1986 (S.I. 1986/2092) and the definition of “successor authority” in article 2(1) of that Order. Where the right to buy is preserved, section 155 of the 1985 Act is modified;see paragraph 21 of Schedule 1 to S.I. 1986/2092. Section 155 is further modified in the circumstances mentioned in the Housing (Extension of Right to Buy) Order 1987 (S.I. 1987/1732);see paragraph 27 of the Schedule to that Order.