Unit 4 Flashcards
GREGOR HAS SECURED A NEW JOB AND HE AND HIS PARTNER LISA HAVE BOUGHT A PROPERTY IN DEVON, NEAR TO HIS NEW WORKPLACE, FOR £140,000 ON A 50/50 TENANTS IN COMMON BASIS. THIS IS LISA’S FIRST PROPERTY PURCHASE. GREGOR OWNS THE LONDON HOUSE IN WHICH HE AND LISA LIVED PREVIOUSLY, WHICH GREGOR INTENDS TO KEEP FOR HIS DAUGHTER TO LIVE IN. HOW MUCH STAMP DUTY LAND TAX (SDLT) WOULD THEY HAVE PAID?
- £300.
- £2,100.
- £4,500.
- £7,000.
£4,500
3% on first £125,000
5% on remaining £15,000
WHICH OF THE FOLLOWING IS TRUE IN RELATION TO LISTED BUILDINGS?
- A new owner will have no responsibility for unauthorised alterations to a listed building made by a previous owner.
- Proposed changes to a Grade 1 listed building are likely to require involvement from Historic England.
- The appropriate Secretary of State will be informed of any local authority decision to allow alterations to any listed building.
- The local authority cannot dictate repairs an owner must make to a listed building.
Proposed changes to a Grade 1 listed building are likely to require involvement from Historic England.
MARION IS THE SOLE DIRECTOR AND SHAREHOLDER OF A SMALL LIMITED COMPANY. SHE BORROWED £5,000 FROM THE COMPANY THROUGH A DIRECTOR’S LOAN 18 MONTHS AGO. NO INTEREST WAS CHARGED BY THE COMPANY FOR THIS LOAN. ONE YEAR AFTER THE END OF THE COMPANY’S ACCOUNTING PERIOD, THE LOAN HAD NOT BEEN REPAID. WHICH OF THE FOLLOWING IS TRUE?
- Marion can choose to write off the loan without any tax implications.
- Marion will be liable to income tax on the loan as a benefit in kind.
- The company would be liable to a tax charge of 32.5%.
- The company would have to pay corporation tax on the loan.
The company would be liable to a tax charge of 32.5%.
GRAHAM IS SELF-EMPLOYED, WITH BUSINESS TURNOVER OF £100,000, AND HAS BEEN ASKED TO PROVIDE VARIOUS PIECES OF INFORMATION IN SUPPORT OF HIS APPLICATION FOR A MORTGAGE. IN WHICH OF THE FOLLOWING DOCUMENTS WOULD A FIGURE FOR HIS PERSONAL DRAWINGS BE FOUND?
- Balance sheet.
- Income tax return.
- Corporation tax return.
- Profit and loss account.
Balance sheet.
Profit & Loss only shows the costs of running the business.
THE DEPOSITING OF AN ENDOWMENT POLICY USED AS A MORTGAGE REPAYMENT VEHICLE GIVES THE LENDER:
- an equitable right over the policy.
- full legal rights over the policy.
- limited legal rights to the policy proceeds.
- the right to surrender the policy without the borrower’s consent.
an equitable right over the policy.
JAMES IS HOPING TO BUY A LEASEHOLD FLAT WITH A MORTGAGE OVER A TERM OF 20 YEARS. WHICH OF THE FOLLOWING STATEMENTS IS CORRECT?
- A lender would usually insist on an unexpired lease of at least 60 years.
- James has the right to extend the lease as soon as he has completed the flat purchase.
- James must pay the annual ground rent to the lender.
- The flat’s value is likely to increase substantially as the expiry date of the lease approaches.
A lender would usually insist on an unexpired lease of at least 60 years.
WHICH OF THE FOLLOWING WOULD NOT BE CONTAINED IN A RICS CONDITION REPORT?
A valuation for insurance purposes.
Advice on certain issues for the buyer’s solicitor.
Issues for further investigation.
Serious issues or those needing attention.
A valuation for insurance purposes.
THE DEPOSITING OF AN ENDOWMENT POLICY USED AS A MORTGAGE REPAYMENT VEHICLE GIVES THE LENDER:
an equitable right over the policy.
full legal rights over the policy.
limited legal rights to the policy proceeds.
the right to surrender the policy without the borrower’s consent.
an equitable right over the policy.
GREG AND ANNIE BOUGHT THEIR PROPERTY IN 2008, BUT ITS POSTCODE AREA HAS NOW BEEN CLASSIFIED AS AT RISK OF FLOODING. THE COUPLE HAVE APPLIED FOR A HOME INSURANCE POLICY FROM AN INSURER THAT USES THE FLOOD RE SCHEME. WHICH OF THE FOLLOWING IS TRUE?
Greg and Annie must submit any claim direct to the Flood Re scheme.
The insurer can add the cost of the premium it pays to the Flood Re scheme to Greg and Annie’s normal premium.
The insurer cannot increase the excess on Greg and Annie’s insurance premium to reflect the extra risk.
The property would not be eligible for the scheme.
The insurer can add the cost of the premium it pays to the Flood Re scheme to Greg and Annie’s normal premium.,
