Topic 15 Flashcards
Which of the following is true in relation to a mortgage indemnity guarantee (MIG) policy?
It is a contract between the:
a. borrower and the insurer.
b. borrower and the lender.
c. borrower, the insurer, and the lender.
d. insurer and the lender.
d. insurer and the lender.
Who would pay a procuration (finder’s) fee to a mortgage adviser when a mortgage is arranged?
The:
a. borrower.
b. borrower’s solicitor.
c. lender.
d. lender’s solicitor.
c. lender.
Cyril has incurred various charges in conjunction with his recent house purchase and mortgage application.
Which one was in respect of post-completion matters?
a. Bankruptcy search.
b. Environmental search.
c. Land Registration fee.
d. Title indemnity fee.
c. Land Registration fee.
Jim and Jo wish to build a single-storey extension to the rear of their detached house.
They can proceed without planning permission, providing the extension does not project by more than what distance from the original house wall?
a. 3 metres.
b. 5 metres.
c. 6 metres.
d. 8 metres.
d. 8 metres.
Which of the following is true in relation to planning consent or building regulations?
a. Building a brick garden wall would typically be exempt from building regulations.
b. Dividing a house into flats would not require planning consent.
c. Internal conversion of an existing garage would always require planning consent.
d. Loft conversions do not require planning consent, regardless of size.
a. Building a brick garden wall would typically be exempt from building regulations.
Jason and Sam have applied for a mortgage of £160,000 on a property valued at £180,000. In view of the loan to value, their lender has agreed to the mortgage on the condition that they must pay an additional one-off charge.
In relation to the charge:
a. the lender must use some or all of the charge to buy a mortgage indemnity guarantee (MIG) policy.
b. it will protect Jason and Sam from any claim against them if they default on the mortgage.
c. the charge is refundable if Jason and Sam maintain their mortgage payments and move house within a specified period.
d. other than ensuring they will get the mortgage, Jason and Sam will not gain any benefit from the charge.
d. other than ensuring they will get the mortgage, Jason and Sam will not gain any benefit from the charge.
Phil and Kate are buying a family home for £250,000. Kate owns a half share in a holiday flat with her sister. The flat is valued at £65,000. She intends to keep the flat as a holiday rental property. It will be Phil’s first property purchase.
What is the position regarding stamp duty land tax (SDLT) on Phil and Kate’s new purchase?
a. Kate would be subject to the 3% SDLT surcharge on 50% of the purchase price.
b. The 3% SDLT surcharge would apply on the purchase price over £40,000.
c. The 3% SDLT surcharge would apply to the whole purchase price.
d. The 3% SDLT surcharge would not apply.
d. The 3% SDLT surcharge would not apply.
Amy and Tom have agreed a price of £195,000 to buy a house, which the lender has valued at £192,000. They have applied for a mortgage of £166,000. The lender applies a higher lending charge of 5% on loans above 75% loan to value.
How much will Amy and Tom have to pay for the higher lending charge?
a. £987.50.
b. £1,100.
c. £1,300.
d. £1,450.
b. £1,100.
Anand and Mandeep have been asked to pay for a drainage search as part of the solicitor’s conveyancing process.
This checks whether:
the property is connected to mains drainage and water.
there are arrears on the water and drainage account.
there is any damage to the water and sewage pipes around the property.
there is any history of flooding in the area.
the property is connected to mains drainage and water.
Edward and Wendy wish to make some improvements to their semi-detached house.
Which of the following is the most likely to require planning consent?
A 60m2 loft extension.
Building a small patio area.
Rebuilding an existing conservatory.
Replacing a small greenhouse.
A 60m2 loft extension.
