Other Factors That Affect The Lending Decision Quiz

1. Which work requires planning consent?

A) Converting a barn into a dwelling
B) Adding cavity wall insulation
C) Building a detached garage less than 30m²
D) Erecting a garden wall

2. What triggers the neighbour consultation scheme?

A) Loft conversions up to 40m³
B) Large single-storey rear extensions
C) Internal garage conversions
D) Satellite dish installation

3. Which factor defines designated land?

A) High flood risk zones
B) Former industrial sites
C) Conservation areas or national parks
D) Properties near power lines

4. What work is exempt from building regulations?

A) Loft conversion
B) Two-storey extension
C) Underpinning foundations
D) Detached garage less than 30m², 1m from boundary

5. Why might lenders reject a property without planning consent?

A) Risk of enforcement orders reducing marketability
B) Higher insurance premiums
C) Higher reinstatement value
D) It is unregistered land

6. What requires listed building consent?

A) Installing double-glazed windows
B) Altering internal walls affecting historical character
C) Repainting exterior walls
D) Replacing roof tiles

7. Which body advises on Grade I listings in England?

A) Environment Agency
B) Local planning authority
C) Historic England
D) Building Control

8. What is a key drawback of owning a listed building?

A) Higher property taxes
B) Mandatory RICS Level 3 inspection
C) Mandatory solar panel installation
D) Costly repairs using original materials

9. Which category covers 92% of listed buildings in England?

A) Grade II
B) Grade I
C) Grade II*
D) Category A

10. What restriction applies in conservation areas?

A) Alterations to a property’s external appearance
B) Tree removal may require consent
C) Extensions affecting the historic character
D) Demolition of original features

11. Which environmental issue requires radon mitigation systems?

A) Soil contamination from industry
B) Overhead power lines
C) Radioactive gas accumulation
D) Near a mining town

12. What legislation addresses coal mining subsidence?

A) Environmental Protection Act 1990
B) Building Act 1984
C) Planning Act 2008
D) Coal Mining Subsidence Act 1991

13. Which factor most threatens mortgage eligibility?

A) Unresolved subsidence history
B) Minor non‐Progressive Foundation Cracking
C) Busy road proximity
D) Seasonal settlement effects

14. What is a lender's concern with contaminated land?

A) Higher renovation costs
B) Health risks affecting property value
C) Mandatory demolition orders
D) Increased insurance deductibles

15. Why might HS2 railway affect lending decisions?

A) Noise pollution during construction
B) Temporary road closures
C) Potential compulsory purchase and price volatility
D) Improved transport links increasing value

16. What is a risk of rent-a-roof solar schemes?

A) Obligations for regular access
B) No future roof modifications
C) Mandatory planning consent
D) Lease binding new owners for 20–25 years

17. Which scheme replaced feed-in tariffs in 2019?

A) Smart Export Guarantee
B) Renewable Heat Incentive
C) Green Energy Subsidy
D) Carbon Offset Program

18. What is a drawback of solar panels for resale?

A) Mandatory roof replacements
B) Reduced kerb appeal for some buyers
C) Higher council tax banding
D) Shorter mortgage terms

19. Which cost is typically paid by the buyer?

A) Estate agent fees
B) Seller's legal fees
C) Local authority searches
D) Energy Performance Certificate

20. What is a key consideration for ground rent?

A) Inclusion in stamp duty calculations
B) Tax-deductibility for freeholders
C) Fixed rate for 99 years
D) Escalation clauses in leasehold agreements

21. Which fee applies to leasehold properties?

A) Service charges
B) Radon mitigation tax
C) Conservation area levy
D) FIT administration fee

22. Why might lenders scrutinize rent-a-roof leases?

A) Administrative complexity
B) Restrictions on property alterations
C) Large increase in building insurance
D) Legnthy planning approvals

23. What is a limitation of permitted development?

A) Requirement to use exclusively traditional or heritage materials
B) Obligation to install advanced energy-efficient features
C) Excluded in designated land for extensions
D) Mandates radon testing

24. Which work requires building regulations approval?

A) Garden shed up to 15m²
B) Repointing brickwork
C) Installing kitchen cabinets
D) Loft conversion

25. What affects reinstatement value calculations?

A) Non-standard construction materials
B) Proximity to schools
C) Historical listing status
D) Solar panel installations

Lenders’ Legal Rights and Remedies Quiz

1. When a lender accelerates a loan after default, it means:

A) The interest rate is increased to the maximum allowed
B) The repayment term is extended to reduce monthly payments
C) Immediate repayment of the full outstanding balance is demanded
D) The loan is converted to interest‑only until arrears are cleared

2. Before applying for a possession order, a lender must:

A) Send formal notices and assess the borrower’s circumstances
B) Appoint a receiver to manage the property
C) Obtain a valuation of the property
D) Apply for a mortgage indemnity guarantee

3. A possession order primarily allows the lender to:

A) Increase the mortgage interest rate
B) Sell the property without further process
C) Transfer the mortgage to another borrower
D) Legally take control of the property

4. Under MCOB rules, pre‑action communication should include:

A) A demand for immediate possession
B) An opportunity for the borrower to remedy the default
C) A waiver of arrears if payment is made within 7 days
D) A fixed repayment plan imposed without negotiation

5. If a borrower remedies the breach before the possession hearing:

A) The lender must still proceed to court
B) The court will automatically grant possession
C) The possession claim may be withdrawn
D) The borrower must pay a penalty fee

6. Once a possession order is granted, the lender must:

A) Follow statutory and contractual procedures before sale
B) Immediately auction the property without valuation
C) Transfer the property to the insurer
D) Offer the property back to the borrower at a discount

7. Securing a repossessed property involves:

A) Renovating it to increase value
B) Leasing it to tenants
C) Demolishing unsafe structures
D) Preventing damage and preserving value

8. Before selling a repossessed property, the lender must:

A) Obtain borrower consent for the sale price
B) Market it commercially to achieve a reasonable price
C) Sell only to cash buyers
D) Transfer it to the highest‑ranking secured creditor

9. Sale proceeds from a repossessed property are first applied to:

A) The borrower’s unsecured debts
B) Estate agent and legal fees
C) The outstanding mortgage balance
D) Any second charge loans

10. A Mortgage Indemnity Guarantee primarily protects:

A) The lender against shortfall losses
B) The borrower from repossession
C) The estate agent’s commission
D) The court from enforcement costs

11. Even if a Mortgage Indemnity Guarantee pays the lender’s shortfall, the borrower:

A) Is automatically released from all liability
B) Receives a refund of the MIG premium
C) Can convert the mortgage to interest‑only
D) May still be pursued for repayment by the insurer

12. The MIG premium is usually:

A) Paid by the lender as a goodwill gesture
B) Passed on to the borrower, increasing mortgage cost
C) Deducted from the sale proceeds
D) Waived if the borrower has a high credit score

13. Before enforcing a sale of a repossessed property, the lender must consider:

A) The borrower’s employment history
B) The lender’s annual profit targets
C) Contractual obligations and the priority of charges
D) The borrower’s future investment plans

14. Subrogation rights in the context of a MIG allow the insurer to:

A) Pursue the borrower to recover amounts paid to the lender
B) Transfer the mortgage to another lender
C) Reduce the borrower’s outstanding balance automatically
D) Waive the borrower’s liability for the shortfall

15. During marketing of a repossessed property, the lender must ensure:

A) The borrower approves the chosen buyer
B) The process is transparent and aims to maximise recoverable value
C) The property is sold only to cash buyers
D) The sale price is set below market value to ensure a quick sale