3  Conveyance of freehold and grant of lease  

3.1 General  

3.1.1  No model leases or transfer documents were provided by the Housing Corporation and RSLs were required to consult their own solicitors on the conveyance or lease to be used. 

3.2 Right of First Refusal 

3.2.1 Where a VPG application was made on or after 18.1.2005, s200 of the Housing Act 2004 introduced provision for a covenant to be inserted into all conveyances that, during the period of 10 years from the date of conveyance the tenant (purchaser) or any successor in title, must make an offer of first refusal to the former landlord.

3.2.2 The covenant was required to be a local land charge and entered into the property’s register of title by the Chief Land Registrar. Thus avoiding the covenant being overlooked at the point of resale.

3.2.3 Where RSLS choose to exercise the Right of First Refusal, they need to make their own arrangements for the necessary funding as the Agency will not be in a position to fund these through SHG. However, RCGF can be used to fund the re-purchase if appropriate.  

3.3 Further Lending 

3.3.1 Where an owner requires further lending to fund necessary works to the property RSLs may postpone their charge in favour of the lender. The charge should not be postponed for any other reason.