Introduction to leasehold purchase-quick fire quiz

Leasehold transactions generally are, what, in regards to a freehold transaction

• Longer

• More complex

• More expensive

• Cheaper

• Quicker

Which of the following is incorrect?

• Leases tend to have covenants, which restrict what an owner can and cannot do

• Leases are for a set period of time

• Leases can be extended

• Lease covenants only bind the original parties

What are apportionments?

• Sums of money calculated between the outgoing/incoming parties to ensure their contribution towards service charge and ground rent for their period of ownership.

• Buyers detailing their period of ownership, so that any breach of covenant can be apportioned to the defaulting party

• The share owned in a shared ownership property

• The size of the demised premises

Major works need to be report to who?

• Client

• Client and lender client

• Lender

• Client and lender client after checking UKFML and obtaining the client authority to report

A notice of assignment is also known as

• Notice of charge

• Notice of intention

• Notice of transfer

• Notice of moving

A document that is used to create a direct legally binding agreement between a landlord and a new leaseholder is called what?

• Deed of variation

• Deed of covenant

• Licence to assign

• Notice of agreement

During your legal appointment call, your client ask if they need to read the full 40 page lease. What is your advice?

• Only if they are struggling to sleep

• Just skim read

• Up to them

• Yes, in full

• Just the covenants

Monies held by a conveyancer, on behalf of a client after completion, in regards to a certain matter for a set period of time is called?

• A retainer

• A sinking fund

• An ISA

• A retention