Unit 3 Topic 4&5

Question 1

A lender would take steps to avoid the forfeiture of a borrower’s lease because
the:
A mortgage conditions do not permit it.
B lender has requested it as an option.
C lender’s security would become of no value.
D borrower would be unable to make repayments.

Answer 1

C lender’s security would become of no value.

Question 2

When a lease on a property expires:
A The leaseholder is left with the reversionary interest.
B The property must be sold.
C A new lease must be arranged immediately.
D The land and property revert to the freeholder.

Answer 2

D The land and property revert to the freeholder.

Question 3

Which of the following statements is correct in respect of a leasehold property?
A Its value is likely to increase substantially as the expiry date of the lease
approaches.
B Any ground rent is paid by the freeholder to the leaseholder.
C The leaseholder is automatically entitled to purchase the freehold interest.
D A lender would always insist that the term of the lease extends beyond the
agreed redemption date of any mortgage granted.

Answer 3

D A lender would always insist that the term of the lease extends beyond the
agreed redemption date of any mortgage granted.

Question 4

Steven and Mary own a flat situated in a purpose-built block comprising 12
identical properties. They are keen to purchase the freehold interest, but, for this
to be possible, leasehold reform legislation requires that:
A The entire block must be only for residential use.
B The lease must have at least 21 years to run.
C All other qualifying leaseholders in the block must be party to the transaction.
D The lease must have originally been granted for a term exceeding 21 years.

Answer 4

D The lease must have originally been granted for a term exceeding 21 years.

Question 5

Which one of the following could be described as an easement?
A The right to purchase a lease 
B A shared boundary
C A right of way 
D A restrictive covenant

Answer 5

C A right of way

Question 6

Which part of HM Land Registry will record a plan of the property?
A Property Register
 B Charges Register
C Proprietorship Register 
D None

Answer 6

A Property Register

Question 7

Which of the following is true of easements?
A They impose a positive burden on the owner.
B The two plots must be close to each other.
C Legally, they pass from owner to owner.
D They cannot be removed by the courts.

Answer 7

B The two plots must be close to each other.

Question 8

Which part of the Land Registry will record the rights of second mortgagees?
A None 
B Charges Register
C Proprietorship Register
 D Property Register

Answer 8

B Charges Register

Question 9

Which of the following pieces of information about a property would be found in
the Proprietorship Register held at HM Land Registry?
A A plan of the property
B Easements affecting the property
C The class of title
D The title number of the land

Answer 9

C The class of title

Question 10

How can a non-owning spouse’s interest in unregistered land be protected?
A By entering the details in the Charges Register at HM Land Registry.
B By registration at the Land Charges Registry.
C By lodging the relevant details with the title deeds.
D By registration at the Local Land Charges Registry.

Answer 10

B By registration at the Land Charges Registry.

Question 11

Which of these would be recorded in the charges register at the Land
Registry?
A Details of the land and its title number.
B Name and address of the estate and owner.
C Adverse easements.
D Class of the title.

Answer 11

C Adverse easements.

Question 12

A property sold with a full title guarantee is confirmation that it is:
A situated on registered land.
B free from encumbrances.
C unaffected by easements, unless it is regarded as the servient tenement.
D freehold with absolute title.

Answer 12

B free from encumbrances.

Question 13

Which one of the following would NOT usually be a lender’s right included
within a mortgage deed?
A to insist on a consent to mortgage form on all mortgage applications.
B to let the property if it has been re-possessed by the lender.
C that the whole debt becomes due on compulsory purchase order.
D to insure the property if the borrower fails to do so.

Answer 13

A to insist on a consent to mortgage form on all mortgage applications.

Question 14

Which of the following is a typical covenant with which a borrower undertakes
to comply?
A To let the property only for a short period.
B Not to let the property without the lender’s prior consent.
C Inform the lender of all occupants of the property upon request.
D Notify the lender when any children over the age of 18 leave the home.

Answer 14

B Not to let the property without the lender’s prior consent.

Question 15

Which of the following is a lender’s right specified in a mortgage deed?
A To let the property whilst the borrower is temporarily living elsewhere.
B To comply with the conditions of the title.
C To insure the property if the borrower fails to do so.
D To sue for possession but only if the borrower’s account is in arrears

Answer 15

C To insure the property if the borrower fails to do so.

Question 16

Which of the following would not be a borrower’s covenant?
A To comply fully with easements
B To comply fully with negative covenants
C To comply fully with positive covenants
D To comply fully with the terms of the freehold

Answer 16

D To comply fully with the terms of the freehold

Question 17

Graham has a rural cottage that is on registered land. He believes the
property may have a chancel repair liability, although the Parochial Church
Council (PCC) has not registered an interest at HM Land Registry. On the basis
of the current situation, this means that, in relation to a liability for chancel
repairs:

A Graham and any new owner could have a potential liability.
B Graham could have a potential liability, but a future owner would not have a
liability.
C Graham would not have liability, but a new owner mat have potential liability
D the PCC would have to register a ‘caution against first registered’ before any
liability could be determined.

Answer 17

A Graham and any new owner could have a potential liability.

Question 18

Five sisters are purchasing a property in joint names. Which of the
following is correct regarding the ownership of the property?
A A maximum of three of the sisters can be legal owners
B A maximum of four of the sisters can be legal owners
C All five sisters can be the legal owners
D all five sisters will be equally designated as equitable owners

Answer 18

B A maximum of four of the sisters can be legal owners

Question 19

Richard and Liz have decided to re-arrange ownership of their house as tenants
in common. If Richard died, leaving his share of the property to his daughter
Karen:
A Karen could force Liz to sell their property
B Liz and Karen would automatically be joint equitable owners
C Liz and Karen would automatically be joint legal owners
D Liz would be the sole legal owner, Karen would be an equitable owner

Answer 19

D Liz would be the sole legal owner, Karen would be an equitable owner

Question 20

Suraj, a leaseholder, has 30 years remaining of the lease of his property. He is applying to extend his lease under the provisions of the commonhold and leasehold reform act 2002. What will the term of Suraj’s new lease be?
A 90 years
B 99 years
C 120 years
D 129 years

Answer 20

C 120 years