Topic 13 Assessing the Property Flashcards
The below is what in relation to a lender will require when assessing whether a property is suitable as security?
- Address or plot number & location
- Purchase Price
- Type of property
- Tenure of property
Information a lender would require
The below is what in relation to a lender will require when assessing whether a property is suitable as security?
- Number & type of rooms and accommodation
- Whether vacant possession is available
- Alterations proposed
- Proposed use of property
Information a lender would require
The below is what in relation to a lender will require when assessing whether a property is suitable as security?
- Name of builder & whether builder is a member of National House Building Control (NHBC)
- Inspection arrangements for self-builds
- Expected rental amount (BTL)
Information a lender would require
Whether a builder is a member of the National House Building Control (NHBC) applies to what type of property?
New builds & properties less than 10 years old
If a builder is not a member of the National House Building Control (NHBC). What might be acceptable to a lender at each stage?
- Appropriate structural warranty inspector
- Qualified building professional with appropriate insurance cover
What is an “Assured Shorthold Tenancy” (AST)?
Agreement that sets out a period for tenancy usual 12 months
“Assured Shorthold Tenancy” (AST) usually apply to what type of mortgages?
But to let (BTL)
A person in a residential property with a tenancy agreement that is not an “Assured Shorthold Tenancy” (AST) that is protected by law is called a what?
Sitting tenant
What happens to a property’s value if there is a “Sitting Tenant”
The property’s value would decrease
If a vendor fails to disclose any disputes with neighbours or other parties (claiming to be connected) to the property. What could the purchaser do if they are affected by it?
Take legal action
The below are types of what that could affect a property’s sale or value?
- Boundaries
- Trees or hedges
- Access
- Noise
Disputes
A freehold property’s value maybe limited by what?
- Easements
- Covenants
What issues could affect the value of leasehold property?
- Lease might have restrictions or obligations for a buyer
- Length of lease (property with a short lease particularly)
The below are problems that may affect the value of what type of leasehold property?
- Type of estate
- Type of construction (particularly concrete)
- Height of building (tower block)
Former local authority flats
The below are problems that may affect the value of what type of leasehold property?
- Access & proposed developments
- Proportion of flats now privately owned
- Maintenance of building
Former local authority flats
What is the “Marriage Value” on a leasehold property?
What the leaseholder will need to pay to extend the lease
How many years would a lease have left on it for the “Marriage Value” to apply?
80 or less
This is the definition of what?
Value of the property with current lease & value of the property if the lease was extended by 90 years
Marriage Value
The Freeholder has a right to what percentage of the “Marriage Value”?
50%
Have long will an owner need to have owned a property before they can extend a lease?
2 years
The “Diminution (Loss)” of interest in a property due to an extension of the lease. Relates to who?
Landlord or Leaseholder
Landlord
The 2 elements to the “ Diminution (Loss)” of interest for a landlord are?
- Landlord will not receive ground rent during the extended term
- Lease will revert to the landlord 90 later than original lease
Bungalows are often more expensive than a house with a similar number of bedrooms?
True or False
True
If a property is unusual & may not be considered desirable to may people what will the lender need to consider?
It’s value in a “Forced sale situation”
