Section 12: Priority of charge for repayment of discount.

Housing Act 1996 · 1996 c. 52View on legislation.gov.uk

Part I: Social Rented Sector regulated by the Welsh Ministers — Chapter II: Disposal of land and related matters

The charge taking effect by virtue of section 11B (charge for repayment of discount) has priority immediately after any legal charge securing an amount—

left outstanding by the purchaser, or
advanced to him by an approved lending institution for the purpose of enabling him to acquire the interest disposed of on the first disposal,

subject to the following provisions.

The registered social landlord may at any time by notice served on an approved lending institution postpone the charge taking effect by virtue of section 11B to an advance or further advance which—

is made to the purchaser by that institution, and
is secured by a legal charge not having priority to that charge;

and the landlord shall serve such a notice if the purpose of the advance or further advance is an approved purpose.

In this section "approved lending institution" means—

a building society, bank, insurance company or friendly society,
the Welsh Ministers, or
an authorised mortgage lender (within the meaning of the Housing Act 1985 (see section 622 of that Act)).

Where different parts of an advance or further advance are made for different purposes, each of those parts shall be regarded as a separate advance or further advance for the purposes of this section.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.