Other Factors That Affect The Lending Decision Flashcards
SDLT rates?
First time buyers exempt on first £300,000
First £125,000 = 0%
£125,001-£250,000 = 2%
£250,001 - £925,000 = 5%
£925,000 + = 10%
3% surcharge when buying a second home (for BTL etc)
Which of the following would not be deemed a permitted development:
A) a loft extension of 40m3
B) internal conversion of a garage
C) a two-storey extension 2m deep
D) a barn conversion
D) a barn conversion
Which of the following would be exempt from building regulations?
A) a 25m3 extension
B) cavity wall insulation
C) a detached garage with a floor area of 20m3
D) a loft conversion
C) a detached garage with a floor area of 20m3
Local authorities generally give retrospective planning consent if all their requirements have been met. True or false?
False
There is a strong chance that local authorities will not give retrospective planning consent. Taking down an illegal extension can reduce a properties value. Lenders require confirmation that all the relevant permissions have been obtained.
Converting an attached garage internally to create a living room of the same size would not usually require planning consent. True or false?
True
As long as the size of the room/house is not increased
A rent a roof scheme contract for solar panels is automatically terminated if the property is sold. True or false?
False
The scheme continues for the length of the contract regardless of the owner
Local authority searches generate a non refundable charge before exchange of contracts. True or false?
True
Glen owns a third share in a buy-to-let flat, valued at £100,000, which he intends to keep. He is now buying a house for his family. Glen would not have to pay 3 per cent stamp duty land tax surplus on his new property. True or false?
True
His interest is below £40,000 so he would not be liable
Vicky a property purchase fell through just before exchange of contracts. She had already incurred a number of fees and charges. Which of the following fees could be carried forward to a new property purchase?
A) solicitor fees
B) local authority search
C) environmental search
D) land registry search
A) solicitor fees
Clive owns a family home in Brighton. Would he have to pay SDLT on a buy to let purchase of £180,000?
Yes
The exemption on BTL and 2nd homes only applies below £40,000
On £40,000 and above He would have to pay the 3% over the standard rate
Joe is buying 7 buy to let flats in one transaction. He can choose to pay SDLT at commercial property rate. True or false?
True but he cannot use multiple property relief
