Few mortgage lenders will lend on properties with an AST because the occupant could gain an overriding interest in the property.
True/False.
False - Most buy-to-let lenders will offer mortgages where an AST is in place.
What does Qualified mean when assessing title requirements?
Title subject to defect in registration. (Very rare)
What does possessory mean when assessing title requirements?
The owner is registered as the owner but is not protected from a claim by another person that they owned the land before it was registered.
What does Good leasehold mean when assessing title requirements
Applies in connection with leases longer than SEVEN YEARS. The leasehold is good but the right of the lessor (freeholder) themselves to grant title may not be guaranteed.
What does Adverse possession (registered land) mean when assessing the title of the property?
Applies where the land has been occupied for TEN YEARS without objection from the registered owner.
Adverse possession (unregistered land)
Applies if land has been occupied for TWELVE YEARS without challenge from the legal owner – at this point the occupier may apply for possessory title.
Flying Freehold can devalue a properties value True/False?
True, if one of the bedrooms for example is extending over a passage to another persons property then that would be know as flying freehold.
If a vendor fails to report a dispute with a neighbour on the property fact find they can enforce legal action. True/False.
True
Many lenders will not lend on former local authority flats in high-rise blocks. True/False.
True - with typical concerns including the type of estate where the property is situated, the type of construction (particularly concrete), the height of the building (tower blocks), access, proposed developments, the proportion of flats that are now privately owned, and maintenance of the building.
As leaseholds are a diminishing asset how long do lenders most lenders require to have left on the lease.
typically of at least 30 to 40 years beyond the end of the mortgage term.
What is meant by Marriage Value?
If a lease has less than 80 years remaining the leaseholder will have to pay a premium known as ‘‘Marriage Value’’ which is the difference between the properties existing value and the potential value if the lease was extended by 90 years.
The freeholder has a right to 50% of the marriage value. True/False?
True
Under the Leasehold and Freehold Reform Act 2024, the leaseholder is no longer required to have held the lease for two years in order to exercise their right to extend; this right is available to the leaseholder immediately. True/false?
True - A leaseholder can now exercise their right to extend the lease immediately after they move in.
Retirement Apartments are hard to sell True False.
True - These retirement apartments are notoriously hard to sell when a resident dies, wants to move or goes into care; the combination of a limited market and high service fees tends to deter many potential buyers.
Why might bungalows be less sought after in certain areas?
Bungalows appeal to a more limited market, which may affect their demand in areas with many bungalows.
Will lenders lend to houses that are built with prefabricated construction.
Yes they will if they have had remedial work done to them.
The current requirement for buildings with external wall systems is that an EWS1 form is:
required for all residential buildings within scope.
Just a fact see other side
Flats above shops are generally difficult to mortgage because the buyer has little or no control over the commercial part of the building, and the flat’s marketability could be affected by noise, smells and other problems. Location is a factor, so a flat above a small parade of shops closing at 5pm in a quiet residential area or village may be easier to mortgage than a flat above a shop in a busy high street. However, areas change and a shop could easily become a restaurant or takeaway.
To be eligible for Flood Re, property must be residential, have been built before 1 January 2009, be insured by the individual home owner and have a council tax band. True/False
True
Pre-manufactured structures, which are assembled on site, are backed by accreditation schemes to ensure they meet required standards. True/False?
True
Flood Re only covers properties built before 2009 and the Flood Re premium may be passed on to the property owner in their insurance premiums. True/False.
True
How many years is the EWS1 form valid for
The EWS1 form is valid for 5 years, at which point another assessment will be required.
