Citation, commencement and application

1. —(1) These Regulations may be cited as the Housing (Purchase of Equitable Interests) (England) Regulations 2009 and shall come into force on 6th April 2009.

(2) These Regulations apply in relation to England only.

Power to purchase an equitable interest to assist a tenant to meet service charge payments

2. —(1) A housing authority (“the landlord”) may with the agreement of the tenant purchase an equitable interest in a flat where the conditions in paragraph (2) are satisfied.

(2) The conditions mentioned in paragraph (1) are that—

(a) a long lease of the flat was granted or assigned by the landlord or another housing authority;

(b) the tenant is liable under the terms of the lease to pay service charges to the landlord in respect of repairs or improvement contributions (whether to the flat, the building in which it is situated or any other building or land); and

(c) the purpose of the purchase is to assist the tenant to meet some or all of the service charge payments.

Exercise of power to purchase

3. The landlord may make a purchase under regulation 2 notwithstanding that the lease concerned was granted or assigned, or the service charge concerned became payable, before the coming into force of these Regulations.

Purchase price

4. —(1) The cost of the equitable interest purchased (“purchase price”) shall be met by the landlord reducing or (as the case may be) cancelling the service charge payable to the landlord by the tenant to such extent as corresponds to the amount concerned, but this is subject to paragraph (2).

(2) Where, in accordance with a term agreed as mentioned in regulation 5, the tenant is liable to pay the landlord’s administrative expenses, the purchase price may, at the option of the landlord, be reduced by the amount of those expenses.

Administrative expenses

5. It may be a term of the agreement for a purchase under regulation 2 that the tenant be liable for the administrative expenses of the landlord in connection with the purchase.