15) OTHER FACTORS THAT AFFECT THE LENDING DECISION

Question 1

What is planning permission

Answer 1

Pl permission or pl consent is the consent required from local and other authorities to undertake certain building work.
Permitted bld within certain condns and limitations in size do not need permission.

Question 2

Designated land

Answer 2

Areas such as conservation areas, areas of outstanding natural beauty, national parks and World Heritage sites.

Question 3

When can bldg work be undertaken without planning consent?

Original hse - hse as it was originally blt or as it stood on 1st July 1948, if it was blt earlier

Answer 3

Extension, conservatory or addn can be done if they meet few condns.
–addition do not cover >half of land around original hse.
–extensions shd be within certain height and depth limits - a) front not closer to road than before. -
b) two-storey extn depth no more than 3m from rear wall of original hse - c) two-storey no closer than 7m from rear boundary -d) no part higher than highest part of existing roof
__matching bldg matl to existing bldg
__conversion of garage does not add to size of bldg
__aerials/satellite dishes pemitted
__single-storey extn can project from rear wall of ori hse by upto 8m for detached and 6m for other prop

Question 4

What sort of work needs planning permission?

Answer 4

1. Work on existing prop but outside scope of permitted dev
2. Work on listed prop or within conserv area
3. New prop
4. Conversion of an existing bldg eg. barn
5. Dividing single prop into sepa homes
6. Work that contravenes original planning consents

Question 5

How does one apply for a Planning Permission?

Answer 5

Contact local authority/council - outline the plan

• complete appln if permission is needed
• submit pre-appln/outline
• appln is placed on appln register for public inspection- notices posted on/near site to inform neighbours
• planning committee makes decision

Question 6

What are bldg regulations?

Answer 6

Bldg reguln relate to str of the devt and materials used, to set stds for design and construc of bldgs. These stds ensure
-health and safety of people in/around blds
-maximise energy conservation.
Local auth can enforce reguln if contravened

Question 7

What bldgs work is covered by bldg regulns?

Answer 7

-new bldg
- exten of existing bldg
-cavity wall insulation
-adding/removing internal
walls
-loft conversion
-underpinning of a bldg’s foundations

Question 8

Bldg work exempt from reguln

Answer 8

• carport extension, shd be open on at least 2 sides and under 30 sq min fl area
• detached garage under 30 sq m and blt at least 1m from prop boundary
• new garden/boundary wall

Question 9

What are listed bldgs

Answer 9

Prop of signi archi historical value - restrictions on changes to fabric of bldg, so permission must be sought

• might be expensive, restrictive
• if reguln not followed by previous owner, new buyer must put it right etc

Question 10

Who do you apply for permission for work on listed bldgs?

Answer 10

Applns to local authority who will consult govt agencies abt proposed change esp Grade I, II*

Question 11

Categories of listed bldgs in England and Wales?

(Scotland has A, B and C(S)

N Ireland has A, B+, B1 and B2)

Answer 11

Grade I - bldgs of exceptional interest (2.5% of all listed bldgs)
Grade II* - bldgs of particular importance (5.5% of all listed bldgs)
GradeII - Bldgs of spl interest (92.5% of all listed bldgs)

Question 12

What environmental, other factors has effect on desirability of land/property?

(Recent eg HS2 railway project)

Answer 12

-Radon gas (radioactive, present in high conc in certain parts of UK, carcinogenic)
-Overhead electrical power lines
Other factors - road widening, infrastr schemes
geology (clay - slippage and subsidence), flood plains, busy road, phone masts and substations

Question 13

What issues could arise in relation to agricultural holdings?

Answer 13

Agril land/prop may come w specific legislation and expert advice may be reqd.
Agril Holdings Act 1948 gave tenants high security and they may be hard/impossible to evict.
Also poorly mgd land was also taken from owner undr supervsn order.

Question 14

Higher lending charges.

Addl secu for mortg

Answer 14

Where LTV exceeds a certain level, lender may charge a higher lending charge

Question 15

What is subrogation?

Answer 15

Right of an insurer to pursue a third party that caused the loss to the insured person eg pursuing a borrower if repossessed prop did not sell for the amount owed to lender and insurer has to make up the difference

Question 16

What is life assurance policy assignment?
(Assignment not normal practice anymore - policy docu is deposited with lender - no legal right but giving lender equitable right - wh is an agreement thte two parties that the policy has been given as a form of security)

Answer 16

Life insu policyto cover mortg payment if borrower dies/endowment policy for interest only mortg - the benefits of policy are signed over to lender for term of mortg, giving lender the right incl right to surrender policy if mortg payments are not met/death/policy matures.

Question 17

What professional fees might a buyer incur?
Note -
** Conveyancer may incur
a) local Land charges (local auth searches)
b) Land Registry Search
c) Environ search
d) Drainage search 
e) Bankruptcy search
f) Land Registration fee
g) Indemnity fees

Answer 17

((HARLAM - to remember))

1) - Mortgage fees
* Higher lending charge
* Arrangement fee
* Reservation (booking) fee
esp on fixed rate mortg
*Lender’s reference fee
*Adviser fee
*Mortg packager fees
2) - Valuation and survey fees
**3) - Legal fees/conveyancer fee
4) - Property transaction taxes -stamp duty land tax (SDLT), BTL addl SDLT,

Question 18

MEAF includes?

MORTGAGE EXIT ADMINISTRATION FEES
Can refer to Ombudsman if unfair

Answer 18

According to MCOB this must be stated for redemption of mortg

• deed release fees
• Land Registry charges
• staff processing cost
• reasonable propor of general overheads