§ Mr. BattleTo ask the Secretary of State for the Environment what measures he has taken to prevent properties which are the subject of rent-to-mortgage arrangements being used as collateral for loans.
§ Sir George YoungPurchasing under rents to mortgages will normally be financed by borrowing and an advance from an approved lending institution to fund the purchase price will take priority over the charge which secures the landlord's share. The purchaser will be free to borrow for other purposes on the security of the property, but such advances will take priority only if the landlord consents. It will be required to consent if the advance is for works to the property or another approved purpose.