TOPIC 15 - other factors that affect the lending decision Flashcards
Sarah and Sally own a semi-detached house. The gate to their medium-sized front garden opens on to the pavement that runs parallel to the road. Which of the following would require planning consent? Select all that apply.
a) A loft extension measuring 35 cubic metres.
b) An extension to the front of the property.
c) A loft extension adding three feet to the existing roof height.
d) Converting the attached garage to a living room.
e) A single-storey rear extension measuring 3m from the original rear wall.
f) A two-storey rear extension ending 5.5m from their garden fence.
b) An extension to the front of the property.
c) A loft extension adding three feet to the existing roof height.
f) A two-storey rear extension ending 5.5m from their garden fence.
permission not required for a semi-detached house if the loft extension does not exceed 40m3.
permission required as the extension will make the front of the property closer to the highway than before.
permission required as the extension will be higher than the highest part of the existing roof.
permission not required as converting a garage internally does not add to the size of the building.
permission not required on a single-storey extension projecting from the rear wall of the original house wall by up to 3m on a semi-detached property.
permission required on two-storey extensions closer than 7 metres to a rear boundary.
Which of the following is exempt from building regulations? Select all that apply:
a) Cavity wall insulation in a detached house.
b) Underpinning foundations on a property suffering from subsidence.
c) Detached 20m2 garage located 3m from the property boundary.
d) A carport extension, open on at least two sides and under 30 square metres in floor area
e) A new garden or boundary wall
f) Cavity wall installation
g) Adding / removing internal walls.
c) Detached 20m2 garage located 3m from the property boundary.
d) A carport extension, open on at least two sides and under 30 square metres in floor area
e) A new garden or boundary wall
Keith and Helen wish to make several changes to their house, a Grade II* listed building in Devon. In terms of permission to carry out the work, they must:
apply first to their local planning authority.
apply first to Historic England.
first consult with the Department for Communities and Local Government.
apply first to their local planning authority, which may then consult with Historic England.
Which of the following would be a potential disadvantage of a homeowner using a ‘rent-a-roof’ scheme to take advantage of renewable energy?
A future buyer would be bound by the terms of the lease, which may deter them from buying.
The homeowner is responsible for ongoing maintenance of the panels.
The homeowner does not receive a significantly discounted rate on the electricity generated.
A future buyer would be bound by the terms of the lease, which may deter them from buying.
The company offering the ‘rent-a-roof’ scheme will have a legal lease to use the roof for 20–25 years and the lease will stay with the property. The company is responsible for maintenance of the panels. The homeowner receives a significantly discounted rate on the electricity generated; in some schemes the electricity is free.
What is the legal status of a mortgage indemnity guarantee (MIG) policy?
It is a contract between the borrower and the insurer that provides protection for the borrower.
It is a contract between the lender and the insurer that provides protection for the lender.
It is a contract between the borrower and the lender that provides protection for both parties.
It is a contract between the lender and the insurer that provides protection for the lender.
Although usually paid for by the borrower, a MIG is an insurance contract taken out by the lender with the insurer to protect it in the event of default.
A borrower providing security for a mortgage by signing over the benefits of a life assurance policy to the lender for the duration of the loan is called:
subrogation.
deposit.
assignment.
Assignment involves the policyholder signing over the benefits of the life policy to the lender for the term of the mortgage. It gives the lender certain rights, including the right to surrender the policy if the borrower fails to make mortgage payments.
Which of the following would the FCA not consider acceptable components of a lender’s mortgage exit fee? Select all that apply.
a) Interest penalty.
b) Deed release fee.
c) Staff processing costs.
d) Proportion of the lender’s lost income.
e) Land Registry charges.
f) Proportion of the lender’s general overheads.
a) Interest penalty.
d) Proportion of the lender’s lost income.
Which of the following buyers would qualify for the first-time buyer exemption from stamp duty land tax (SDLT) when buying a property now? Select all that apply.
a) Gary, who is buying his first property with the help of a deposit funded by his mother using equity release on the family home.
b) Brian, who sold his flat five years ago and has rented since.
c) Alison, who is buying a flat with her father, who jointly owns the family home.
d) Manuel, who sold his apartment in Spain to move to the UK three years ago.
e) Mike, who is buying his first flat with a guarantee from his father secured on his house.
f) Grace, who is buying a shared-ownership flat and has opted to pay SDLT in stages.
a) Gary, who is buying his first property with the help of a deposit funded by his mother using equity release on the family home.
e) Mike, who is buying his first flat with a guarantee from his father secured on his house.
For joint purchasers, both must meet the definition.
Using a guarantee secured on someone else’s property, or the proceeds of equity release from someone else’s property, would not affect the right to the exemption.
SDLT applies in Scotland. True or false?
True False
False. Scotland has Land and Buildings Transaction Tax (LBTT).
Which of the following would not be deemed a ‘permitted development’?
Internal conversion of a garage.
A two‑storey extension 2m deep.
A barn conversion.
A loft extension of 40m3.
A barn conversion.
Which of the following would be exempt from building regulations?
Cavity wall insulation.
A 25m3 extension.
A loft conversion.
A detached garage with a floor area of 20m3
A detached garage with a floor area of 20m3.
No building regs under 30 square meters in floor space built at least one meter from the property boundary.
Local authorities generally give retrospective planning consent if all their requirements have been met. True or false?
True False
False: there is a strong chance that local authorities will not grant retrospective planning consent. Taking down an ‘illegal’ extension can reduce a property’s value, so 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 False
True: as long as the building is not increased in size, converting a garage internally will not usually require planning consent.
A rent‑a‑roof scheme contract for solar panels is automatically terminated if the property is sold. True or false?
True False
False
Local authority searches generate a non-refundable charge before exchange of contracts. True or false?
True False
True
