Housing Act 1980 — Right to buy — Tenant exercised right to buy — Tenant enjoying substantial discount for 26 years’ occupation — Tenant dying before completion — Nominated successor — Whether nominated successor entitled to same discount
In 1982 a Mrs McIntyre became the secure tenant of a dwelling-house owned by the defendant council. She had lived in the house since 1958. In 1984 she served on the defendants the proper notice to exercise her right under section 1 of the Housing Act 1980 to buy the freehold. It was agreed that she was entitled to a discount based on 26 years’ occupation. In April 1985, before completion could take place, she died.
It was agreed that one of her children, Paula, should succeed to the tenancy. The appellants claimed that as Paula had succeeded to the secure tenancy, she was entitled to same discount as her mother. Section 13(1) of the Housing Act 1980 (see now section 136(1) of the Housing Act 1985) provides that “the new tenant shall be in the same position as if the notice had been given by him and he had been the secure tenant at the time it was given”. In the Merthyr Tydfil County Court (May 28 1987) Mr Assistant Recorder Hillier accepted the respondents’ submission that Paula was entitled only to a discount based on her occupation since she reached the age of 16 years.
Held The appeal was allowed. Section 13(1) makes clear that the new secure tenant must be in the same position as the previous tenant to whose tenancy he succeeded. This means for all purposes including the entitlement to the discount enjoyed by the previous tenant. Any other construction would mean that the valuation would be on one basis and the discount calculated on another; that could not have been intended.
Mark Furness (instructed by Martin Evans, of Merthyr Tydfil) appeared for the appellants; and Crispin Masterman (instructed by the solicitor to the Merthyr Tydfil Borough Council, Simpson Millar acting as London agents) appeared for the respondents.
