Right to buy — Matters relating to grant agreed — Completion deferred — Housing authority claiming possession for redevelopment — Whether authority entitled to possession — Whether tenants entitled to enforce right to buy — Appeal by tenants allowed
The appellants, the joint tenants of a house at 29 Ravensfield Road, Welwyn Garden City, owned by the respondent local housing authority, exercised their right to buy the house in accordance with the Housing Act 1985. The right was admitted and the appellants, after claiming a mortgage, gave notice in September 1987 claiming their right to defer completion until February 5 1990 in accordance with section 142. In July 1988 the respondents first informed the appellants of the decision of their housing committee which had resolved to demolish all buildings in the area. Upon the appellants giving notice calling for the immediate transfer of the freehold title, the respondents served a notice in September 1988 seeking possession of the house on ground 10 in Schedule 2 to the 1985 Act.
The appellants sought an injunction under section 138 of the 1985 Act requiring the transfer of title. In the Hertford County Court His Honour Judge Hamilton, considering himself bound by Enfield London Borough Council v McKeon [1986] 1 WLR 1007, found that as the respondents were entitled to possession of the house, then by virtue of section 121 of the 1985 Act the right to buy was not exercisable.
Held The appeal was allowed and an injunction granted.
By a letter of August 6 1987 the respondents’ chief legal officer informed the appellants that he had received instructions to proceed with the sale. The respondents had therefore come under a duty to convey the freehold. The respondents’ duty to convey became enforceable by an injunction under section 138(3) of the 1985 Act upon suspension of the deferment of the completion date. The appellants had become the owners of the house in equity and had exercised their right to buy; they had received no notice seeking possession and therefore section 121(1) did not apply.
Enfield London Borough Council v McKeon
[1986] 1 WLR 1007 distinguished.
David Watkinson and Stephen Cottle (instructed by Graham Fear & Co) appeared for the appellants; and John Haines (instructed by the solicitor to the Welwyn Hatfield District Council) appeared for the respondents.
