Principles of mortgage And Property Law Flashcards
What is -
Conveyance?
Mortgagee?
Mortgagor?
Conveyance - transfer of rights in property
Mortgagee - the lender
Mortgagor - the borrower
What is
‘The lessor’
‘The lessee’
The lessor - the freeholder
The lessee - the lease holder
The borrower is known as the mortgagor. True or false?
True -
The mortgagor is the borrower
The mortgagee is the lender
Which of the following is the technical definition of ‘ freehold’ land tenure
A) estate in fee simple absolute in possession
B) estate in fee simple for a term of years absolute
C) estate in possession for fee simple absolute
D) absolute term in possession for fee simple
A) estate in fee simple absolute in possession
A legal charge is known in Scotland as a mortgage by demise. True or false?
False
A legal charge in Scotland is known as a standard security.
A second mortgage is a further loan from the original lender. True or false?
False
A further loan from the original lender is known as a further advance
Where more than one charge is held over registered land, the order of priority for repayment in the event of a default is determined by?
A) which lender is owed the most money
B) the magistrates court
C) the date order in which the charges were registered
D) the financial ombudsman
C) the date order in which the charges were registered
Gary had a property subject to a legal charge with the Pleasant Building society, registered 15 years ago on 1 May, securing a loan of £140,000, and a legal charge with the consolidated loans company, registered 10 years ago on 11 July, securing a loan of £30,000. Gary defaulted on his loans and the house was taken into possession and sold for £160,000 on 10 May this year. Who would get what from the proceeds of the sale?
A) consolidated loans would receive £30,000 and Pleasant building society would receive £130,000
B) pleasant building society would receive £140,000 and consolidated loans would receive £20,000
C) pleasant building society would receive £140,000, Gary would receive £20,000 and consolidated loans would receive nothing.
D) pleasant building society and consolidated loans would require the court to decide how the proceeds should be diverted between them
B) pleasant building society would receive £140,000 and consolidated loans would receive £20,000
Tenancy in Common means that when one joint owner dies their beneficiaries automatically become joint legal owners of the property. True or false?
False
The survivor becomes the sole legal owner but must hold their deceased co-owners part in trust for the deceaseds beneficiaries.
Keith and Linda have just married. They have both been married before and each has 2 adult children. Each has a house of their own but they have now decided to sell them and buy a home together which ownership arrangement would enable them each to leave their share of the property value to their children on their death?
A) joint tenancy
B) joint and several tenancy
C) tenancy in common
D) ownership in one name with the partner as a beneficial owner
C) tenancy in common
Why might it be inadvisable for a leaseholder with 20 years remaining on their lease to put their flat on the market?
A flat with only 20 years lease would be valued far below the market value
It would be worth negotiating an extension before placing on the market
Iliana owns one of two flats in a converted house on a leasehold basis. She and her fellow leaseholder cannot buy the freehold of the property because it is too small to qualify under the commonhold legislation. True or false?
False
A building need only contain 2 or more flats in order for the leaseholder to have the right to buy the freehold
