(1) Where any portion of the land vested in the Council for the purposes of this Act by the provisions of section 3 of this Act has, whether before or after commencement of this Act, been leased (pursuant to the Hamilton Domains Act 1911 and its amendments, or this Act or any other Act) under paragraphs (e), (f), or (g) of section 5 of the Public Bodies Leases Act 1908, or paragraphs (e), (f), or (g) of section 7(1) of the Public Bodies Leases Act 1969, the Council may sell and transfer to the lessee thereof the fee simple of the land comprised in the lease:
provided that simultaneously such lessee at his own cost and to the satisfaction of the Council arranges for the registration of the effective merger of his leasehold interest in such fee simple or otherwise for the effective extinguishment of his leasehold interest:
provided also that the provisions of this section shall not apply to the land described in Part 2 of Schedule 2 of this Act, the same having been acquired pursuant to section 6(c) of the Hamilton Domain Endowment Act 1971.
(2) Any such sale shall be on the basis of the current land value of the land, as determined by the Council after obtaining a valuation from a registered valuer for that purpose or as fixed by arbitration in the manner provided for in the Arbitration Act 1908, together with—
(b) all valuation, survey, and other expenses of the Council relating to the fixation of the sale price and the sale and transfer of the fee simple to the lessee:
provided that, where the lessee elects to have the value fixed by arbitration, then, notwithstanding any of the provisions of the Arbitration Act 1908 (including Schedule 2 thereto), all costs of the reference and award including arbitrators' and umpires' fees and charges shall be paid by the lessee.
(3) On the completion of any sale and transfer the land affected thereby shall be freed from the trusts imposed by sections 3 and 4.
(4) In subsection (2) the terms improvements and land value shall have the same meanings as those contained in section 2 of the Valuation of Land Act 1951 save that in determining land value no reduction shall be made as a result of the existence of the lease to the purchaser at the time of sale and transfer.
(5) Where the fee simple estate in the land is sold to the lessee under the provisions of this section, the Council at its own discretion may, subject to subsections (6) to (8), accept in lieu of a total cash payment a registerable mortgage of the said estate securing to the Council not more than 90% of the total amount payable by the lessee under subsection (2), but excluding therefrom the sums referred to in subsection (2)(b) (the amount secured being hereinafter referred to as the principal sum).
(6) Where the mortgagor under a mortgage that is accepted under subsection (5) is a community organisation, the following provisions shall apply—
(7) Where the land mortgaged under a mortgage that is accepted under subsection (5) is land which, at the time of both the sale and transfer of the land to the mortgagor, is zoned by the Council as Residential I or Residential II or Residential III under the provisions of the Town and Country Planning Act 1977 and in the opinion of the Council (whose decision shall be final) 1 (but not more than 1) self-contained home or residence for the purposes of a single house-keeping unit to be used by the transferee is either then erected upon the said land or is likely to be erected thereon within 2 years after the date of the completion of the sale, the following provisions shall apply:
(8) In every other case where a mortgage is accepted under subsection (5), that mortgage shall be a registerable first mortgage of the fee simple estate.
(9) Except as provided in subsections (5) to (8), any mortgage accepted by the Council shall be subject to such terms and conditions as may appear to the Council to be appropriate:
provided that—
(a) where the mortgagor is not a community organisation and the land mortgaged is zoned by the Council as Residential II or Residential III under the provisions of the Town and Country Planning Act 1977, the rate of interest payable shall, while not more than 1 self-contained home or residence for the purposes of a single house-keeping unit is erected upon the mortgaged land and is occupied by the mortgagor or by the spouse or former spouse of the mortgagor, be not more than 0.5% per annum more than the rate of interest that would have been payable if subsection (7) had been applicable; and
Section 5(4): substituted, on 26 August 1981, by section 3 of the Hamilton Domain Endowment Amendment Act 1981 (1981 No 1 (L)).
Section 5(5): substituted, on 26 August 1981, by section 3 of the Hamilton Domain Endowment Amendment Act 1981 (1981 No 1 (L)).
Section 5(6): substituted, on 26 August 1981, by section 3 of the Hamilton Domain Endowment Amendment Act 1981 (1981 No 1 (L)).
Section 5(7): added, on 26 August 1981, by section 3 of the Hamilton Domain Endowment Amendment Act 1981 (1981 No 1 (L)).
Section 5(8): added, on 26 August 1981, by section 3 of the Hamilton Domain Endowment Amendment Act 1981 (1981 No 1 (L)).
Section 5(9): added, on 26 August 1981, by section 3 of the Hamilton Domain Endowment Amendment Act 1981 (1981 No 1 (L)).