Topic 4

Question 1

Estate for a term of years absolute is the meaning for what kind of property ownership?

Answer 1

leasehold

Question 2

Estate in fee simple absolute in possession

Answer 2

freehold

Question 3

The most common way of property purchase today is…..

Answer 3

‘Mortgage by the way of Legal Charge’

Question 4

What form is placed on a property to restrict the survivng tenant on a tenants in common property to restrict it from being sold

Answer 4

A Form A restriction would be requested on the property

Question 5

If a Tennant in common dies, does the remaining Tennent have responsibility for the whole debt regardless of their share. Yes/No

Answer 5

Yes

Question 6

What is flying freehold?

Answer 6

Flying freehold is the term used when part of a freehold property extends above or below another person’s property but is not next to or touching the ground

Question 7

When buying the freehold what is the qualifying criteria

Answer 7

• The building must contain two or more flats.
• At least two thirds of the flats must be held on a long lease– a lease that was originally granted for a term of more than 21 years.

-No more than 25% of the internal floor area of the building (excluding common areas such as stairs and hallways) can be used for non-residential purposes. (This increases to 50% in the 2024 Act.)

-At least 50% of the leaseholders in the block must agree to participate. For example, in a block of 12 flats, at least eight must be held on a long lease and at least six leaseholders must agree to participate in the purchase.