Unit 4 Topic 15

Question 1

Edward and Wendy wish to make some improvements to their home. Which is
the MOST likely to require planning consent?
A Building a garage
B Rebuilding the conservatory
C Replacing a greenhouse
D Building a patio area

Answer 1

A Building a garage

Question 2

Many alterations to a property require planning consent from a local authority.
Which one of the following changes does certainly NOT require such consent?
A Relocating a kitchen
B Adding a two-room extension
C Changing the use of the building
D Installation of central heating

Answer 2

D Installation of central heating

Question 3

When Shirley started her mortgage, she was asked to pay a fee for a title
indemnity policy. The purpose of this was to protect:
A Shirley and her lender from legal action by the Land Registry in the event of
a solicitor’s error.
B Shirley’s solicitor in the event that there was a later dispute over their legal
work and the quality of title
C Shirley and her lender from title related claims from others
D the lender in the event of Shirley defaulting on the loan

Answer 3

C Shirley and her lender from title related claims from others

Question 4

What amount would be subject to a higher lending charge for a loan of £140,000
on a property valued at £160,000, when the lender offers up to 80% of the
valuation without a higher lending charge?
A £6,000
B £12,000
C £16,000
D £20,000

Answer 4

B £12,000

Question 5

Which of the following is true in relation to listed buildings?
A A new owner will have no responsibility for unauthorised alterations to a
listed building made by a previous owner
B The relevant Secretary of State will be informed of any local authority
decision to allow alterations to a listed building.
C Proposed changes to a Grade 1 listed building are likely to require
involvement from English Heritage
D The local authority cannot dictate repairs an owner must make to a listed
building.

Answer 5

C Proposed changes to a Grade 1 listed building are likely to require
involvement from English Heritage

Question 6

Geraint is a first time buyer looking to buy a house in South Wales for £220,000.
How much Land Transaction Tax (LTT) will he be liable for?
A None
B £1,400
C £1,900
D £7,700

Answer 6

B £1,400

Question 7

Which one of the following is FALSE in relation to mortgage indemnity
guarantee insurance policies ?
A They are a single premium insurance policy.
B The borrower is protected in the event of default.
C They are paid for by the mortgagor.
D The premium can often be added to the loan.

Answer 7

B The borrower is protected in the event of default.

Question 8

A lender would be MOST likely to require a higher lending charge when:
A the interest rate is likely to fall.
 B the loan-to-income ratio is low.
C the loan-to-value ratio is high. 
D the property market is rising.

Answer 8

C the loan-to-value ratio is high.

Question 9

A higher lending charge used by a lender to buy a mortgage indemnity
guarantee insurance policy is paid for by the:
A lender and protects both the lender and the borrower.
B lender but protects the borrower only.
C borrower and protects both the borrower and the lender.
D borrower but protects the lender only.

Answer 9

D borrower but protects the lender only.

Question 10

If the guidelines produced by the Association of British Insurers (ABI) were
strictly applied, how much of a mortgage indemnity claim for £30,000 is likely to
be paid?
A £18,000
B £21,000
C £24,000
D £30,000

Answer 10

C £24,000

Question 11

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)
A The 3% surcharge would apply on the purchase price over £40,000
B The 3% surcharge would apply to the whole purchase price
C They could avoid the 3% surcharge only if Kate gave up her share of the
holiday flat
D The 3% surcharge would not apply

Answer 11

D The 3% surcharge would not apply

Question 12

How much would be payable to the Land Registry for registering a property in 
the new owner’s name?
A £5-£10
B £30
C £39
D £40-£910

Answer 12

D £40-£910

Question 13

Mo and Aman’s existing lender has been asked to provide a reference for their
new lender. How much is this likely to cost?
A £10
B £50
C £75
D £100

Answer 13

B £50

Question 14

Which of the following fees would not be charged (or would be refunded) if the
purchaser withdrew from the sale on the day he was due to exchange contracts?
A bankruptcy search fees
B environmental search fees
C Land Registry fee
D valuation fee

Answer 14

C Land Registry fee

Question 15

Which one of the following would not be covered by an environmental search?
A A history of flooding in the area
B Mining subsidence
C Planned development in the area
D The presence of radon gas

Answer 15

C Planned development in the area

Question 16

Which of the following is true in relation to planning consent or building
regulations?
A All types of tree on the owner’s land can always be felled without permission
B Dividing a house into flats would not require planning consent
C Building a brick garden wall would typically be exempt from building
regulations
D Internal conversion of an existing garage would always require planning
consent

Answer 16

C Building a brick garden wall would typically be exempt from building
regulations

Question 17

A mortgage application fee is most likely to include:
A higher lending charge
B mortgage indemnity guarantee
C basic valuation
D mortgage broker’s fee

Answer 17

C basic valuation

Question 18

Dawn has offered £256,000 for a house in Manchester. She does not currently
own a property but she has previously been a property owner. The survey report
highlighted essential repairs and the vendor later agreed a new purchase price of
£225,000. How much did Dawn save in Stamp Duty Land Tax if the purchase
completed?
A £2,250
B £800
C £930
D £310

Answer 18

B £800