Redmill Week 2 Flashcards
In England, when is the point of ‘no return’?
In England, the point of no return is once contracts have been exchanged
Define ‘fixtures’
Fixtures are things which are part of the property and not easily removeable such as carpet
Define ‘Fittings’
Fittings are things that can be removed such as dishwashers and ovens
Which is included in the SDLT calculation?
Only ‘fixtures; are included in the SDLT calculation
What is ‘gazumping’
Gazumpng is where the seller after accepting one offer, accepts another offer which is higher
What is ‘gazundering’
Gazundering is where the buyer waits a few days before the exchange is about to take place then makes a lower offer than the one agreed
What is gazanging?
Gazanging is where the seller pulls out of the sale
Who does the estate agent owe overall responsibility to?
The estate agent owes responsibility to the seller, not the buyer
When must contracts be exchanged on a sale/purchase of a house via a non-conditional public auction?
During a non-conditional public auction, the contract must be exchanged on the same day.
During a non-conditional public auction, if the buyer does not have the funds available, what options are available to the seller?
The seller can sue for breach of contract
With a conditional auction, how long do the buyer and seller have to exchange contracts?
With a conditional auction, the buyer and seller has 28 days to exchange contracts
What is the best type of energy rating?
The best type of energy rating is ‘A’. The lower the number, the better.
What is an overriding interest of a property?
An overriding interest is where a partner loves in the property for years and contributes to the bills but isn’t on the mortgage, this could prevent sale of the property
Can future changes be considered in the lending decsion?
No future changes cannot be factored in
Do mortgages to companies have lower limits and higher interest rates?
Yes, mortgages to companies have lower limits and higher interest rates
If the borrower is building the property themselves, what will the lender insist?
If the borrower is building the property themselves, the lender will insist that the builder is a member of the National Hose Building Council (NHBC) or are supervised by a qualified architect
What is ‘affordability’ assessed on?
Affordability is assessed on the disposable income of the household
With a capital mortgage how would you aim to clear the debt sooner?
With a capital mortgage, to clear the debt sooner you would look to reduce the term, or make overpayments if possible
With a capital mortgage, how would you look to decrease the monthly payments?
To decrease the monthly payments, you would look to extend the term of the mortgage.
Which type of mortgage is considered high risk?
Interest only mortgages are considered high risk
For security on a property, what 3 thing would a lender want in a security?
In a security, a lender would want:
- Simple and not expensive to complete
- Stable
- Realisable and easily and quickly convertible to cash
As a result of the Hedly Byrne v Heller and Partner 1964 case, for negligence to exist which three things need to be present?
For negligence to exist the following need to be present:
- A duty of care exists
- There was a breach of that duty of care
- Some loss has arisen from the breach of that duty of care
In a level 1 RICS condition report, what is the main thing highlighted? And what type of home is it most suited to?
A level 1 RICS condition report is usually best suited to new conventional homes and highlights the defects on the property.
If one has a buy-to-let property, how much would the lender want the rent to be in comparison to the mortgage repayment as a minimum?
With buy to let properties, lenders will want the rental income to be at least 125% of the mortgage repayment
If a property is built with unusual materials is a specialist lender usually required?
Yes, if a property is built with unusual material a specialist lender is usually required
Are older properties more expensive to maitain?
Yes, older properties are more expensive to maintain
What is the purpose of the ‘Buildmark’ scheme
The ‘buildmark’ scheme insures against a builder’s fraud, insolvency and any major faults in the first 10 years
What is the minimum claim value using the ‘buildmark’ scheme?
Using the Buildmark scheme, the minimum claim value for policies starting after 1st April 2019 is £1,750 with an increase each year of £50 until 2026 where the minimum will be £1,950
On what three occasions is planning permission required?
Planning permission is required where:
- On a house extension (dependent on size and property type)
- When dividing houses into separate self-contained “units”
- Building a fence or gate higher than 2 meters, or any height if against any restrictions or on a listed property
How long will it take to get a decision on a planning permission application?
Decisions on planning permission applications should be made within 8 weeks
Which is the type of listed building with most importance?
The type of listed building with most importance is a Grade I
What is the SDLT surcharge on second properties?
The SDLT surcharge on second properties ins 3% on top of the standard rates
Is SDLT paid if a property is part of a divorce settlement?
If part of a divorce settlement, then there is no SDLT payable.
What is the SDLT surcharge for non-uk residents?
The SDLT surcharge for non-UK residents is 2% on top of standard rates
How much is the tax credit for interest on a buy to let?
On a buy to let, the tax credit for mortgage interest is 20% for all
What is the most common type of house sale in England?
In England the most common type of house sale is private treaty.
What is the most common type of house sale in Scotland?
In Scotland, the most common type of house sale is private bargain.
What does a basic valuation cover?
A basic valuation provides a valuation of the property and provides the recommended insurance value taking into account rebuild costs, and support of adjoining properties
