Social Landlords (Additional Purposes or Objects) Order 1999
| Jurisdiction | UK Non-devolved |
| Citation | SI 1999/985 |
1999 No. 985
HOUSING, ENGLAND AND WALES
The Social Landlords (Additional Purposes or Objects) Order 1999
Made 25th March 1999
Laid before Parliament 29th March 1999
Coming into force 19th April 1999
The Secretary of State for the Environment, Transport and the Regions, as respects England, and the Secretary of State for Wales, as respects Wales, in exercise of the powers conferred upon them by section 2(7) of the Housing Act 19961, and of all other powers enabling them in that behalf, hereby make the following Order:–
Citation and commencement
1. This Order may be cited as the Social Landlords (Additional Purposes or Objects) Order 1999 and shall come into force on 19th April 1999.
Additional permissible purpose or object
2. Providing loans secured by mortgages to assist persons to acquire houses for their own occupation is hereby specified as a permissible purpose or object additional to those specified in section 2(4) of the Housing Act 19962(eligibility for registration as a social landlord).
Priority of mortgages
3.—(1) Where–
(a)
(a) a social landlord provides an equity percentage loan secured by an equity mortgage to assist a person (“the mortgagor”) to acquire a house for his own occupation; and
(b)
(b) a qualifying lending institution also provides a loan secured by a mortgage to that mortgagor to assist him to acquire that house,
the mortgage mentioned in sub-paragraph (a) shall have priority immediately after the mortgage mentioned in sub-paragraph (b).
(2) Where the mortgagor, for the purpose of enabling him to carry out any improvement to the house in question, and with the written consent of the social landlord, acquires a further advance secured by the mortgage mentioned in sub-paragraph (b) of paragraph (1), the priority of that mortgage shall remain unchanged.
(3) For the purposes of this article –
“agreed percentage” means a percentage agreed between the social landlord and the mortgagor;
“equity mortgage” is a mortgage under which, in consideration for an equity percentage loan, the mortgagor agrees that on the loan becoming repayable he shall pay to the social landlord an amount which is equal to the agreed percentage multiplied by the value of the house, as determined in accordance with the terms of the mortgage, at the date on which the loan becomes repayable;
“equity percentage loan” is a loan...
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