11.— (1) Where in respect of a multi-unit development the development stage has ended and either section 3(7) or 4(2) applies, the owner of every beneficial interest in the relevant parts of the common areas and the reversion in the residential units which is reserved by virtue of those provisions shall, subject to subsection (2), as soon as practicable thereafter make a statutory declaration for the benefit of the owners’ management company that the beneficial interest concerned stands transferred to the owners’ management company concerned, and the effect of the making of such declaration is that the beneficial interest and legal interest stand merged.

(2) A declaration under subsection (1) shall be made with the consent of each mortgagee or owner of a charge in relation to the interest of the owner of the common areas and reversion in the residential units concerned which consent shall not be unreasonably withheld.

(3) Consent under subsection (2) shall not be treated as being unreasonably withheld where the mortgagee or owner of the charge makes the giving of such consent subject to a condition that the developer’s interest in any residential unit which remains unsold be made subject to the granting of a mortgage or charge in favour of the mortgagee or owner of the charge.