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Introduction

Introduction Introduction This topic will outline the typical stages of the house buying process. The image below is an overview of the typical process, but it’s important to note that not all property purchases will follow it. Each stage of the buying process...

Title Guarantees

Title Guarantees What is a title guarantee? Title guarantees provide a level of comfort as to the robustness of the title being conveyed. A contract for the sale of a property will state whether the vendor is selling with: 1. Full Title Guarantee: 1.1. The vendor has...

Rights & Obligations

Rights & Obligations What rights and obligations are attached to land? Certain rights and obligations can affect the title of a property. These are known as: Easements Positive Covenants Restrictive Covenants Restrictive Covenants and Easements are said to “run...

Types of Joint Ownership

Types of Joint Ownership Joint Ownership The legal owners are those who are the registered proprietors of a registered property or those whose names are shown in the latest conveyance for unregistered property. They have the power to transfer legal ownership of the...

Property Law

Principles of Mortgage & Property Law Mortgage Law Over time mortgage law has evolved, generally to the benefit of borrowers. The changes in mortgage law arise from general law changes and also due to improved consumer protection. For example, borrowers were...

Legislation to Protect Property Buyers

Legislation to Protect Property Buyers Consumer Protection Regulations 2014 The legislation gives consumers certain rights and remedies where a firm is in breach of the regulations, and right to redress if they have been subject to misleading or aggressive practices...

Buy to Let and Second Mortgages

Buy-to-Let and Second Mortgages Buy-to-Let Mortgages The FCA definition of a BTL mortgage is the same as a regulated mortgage, but with the following exception: The property cannot be occupied as a dwelling by the borrower or a related person at any time and will be...

Home Reversion Plans

Home Reversion Plan Home Reversion Plans A home reversion plan is where part or all of a property is sold to a provider. The provider pays a lump sum in return. The lump-sum is significantly less than the market value of the property – typically only between 20 per...

Home Purchase Plans

Home Purchase Plan Home Purchase Plan A home purchase plan is an arrangement where: • A provider (e.g. lender) buys a qualifying interest in land; • an individual or trustee (the home buyer) is obliged to buy the interest from the provider during or at the end of a...

Retirement Interest-Only Mortgages

Retirement Interest-Only Mortgages Retirement Interest-Only Mortgages The FCA introduced a new category of an interest-only mortgage in March 2018 called retirement interest-only mortgages. The new category was introduced due to demand from borrowers unable to repay,...

Lifetime Mortgages

Lifetime Mortgages Lifetime Mortgages A lifetime mortgage is aimed at older homeowners who have assets but not income. The mortgage is designed to release equity from the property. The majority of people that apply for a lifetime mortgage have no existing mortgage or...

Powers of Attorney

Powers of Attorney What are powers of attorney? When someone makes a power of attorney, they appoint someone else to act on their behalf. The person making a power of attorney is called a donor, and the person appointed to act on their behalf is called an attorney. A...

People who are Unable to Borrow

People Who Are Unable to Borrow Those who cannot borrow The previous lessons discussed people that are able to borrow subject to the lender’s agreement. This lesson will cover three groups of people who are unable, by law, to borrow or whose ability to borrow is...

Special FCA Categories

Special FCA Categories Special FCA Categories There are two categories of borrowers that are specifically referred to by the FCA in MCOB because their circumstances require careful treatment with mortgages. These are:  1. Mortgage Trapped Customers 1.1 – These...

Corporate Borrowers

Corporate Borrowers Corporate Borrowers – Companies Lenders can provide loans to limited liability companies for residential or commercial purposes. Important notes: 1. The company is a legal entity, separate from the owners. 2. Most lenders will only lend to...

Business Borrowers

Business Borrowers Business Borrowers Mortgages that are taken out by individuals for business purposes are regulated and subject to MCOB if: 1. Borrowing is secured by a legal charge on a property where at least 40% of the land is used as a residence. 2. The sole...
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