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11 Cards in this Set
- Front
- Back
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Joint tenancy |
Joint property in Scotland |
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Tenancy in common |
Each proprietor has he specified share of the property. On death their share passes to their estate |
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Transfer at undervalue |
Clarifying that no insolvency proceedings are imminent. Purchase at undervalue when putting in place a home reversion plan |
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Subletting the property |
Must get the permission of the lender. If sublet then not pay any tax. |
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Condition subsequent |
Stating the events in which the lease will be terminated such as death of the occupant or permanent vacation of the property |
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Leases under home reversion plans |
1. Entitles customer to live in the property. 2. Required to register the lease. 3. Least sets out the rights and obligations of each party – name of parties to lease – eight – the property – rent |
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Benefits of lifetime mortgage |
1. Customer can choose a capital sum/income 2. Product can be set up with all with out payments 3. Ownership of the property is retained 4. No one emotional strain associated with selling the property |
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Risks of lifetime mortgage |
1.Value of the state is reduced 2. Rolled up interest die loot value of a state 3. Rate of interest higher 4. Can we service the debt 5. Not repaid early 6. Loss of entitlement to state benefits |
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Consideration of equity release options |
1. Consideration of equity release options 2. Obtaining appropriate advice Application 3. Sanction or decline of application 4. Legal convenience of property 5. Home reversion plan – creation of lease 6. Drawdown of funds |
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Independent legal advice |
1. Firm to advise the customer to seek independent legal advice 2. Solicitor to provide objective guidance 3. Solicitor should be independent of both the customer and the provider 4. Joint applicants then independent advice for each 5. Barclays Bank versus O'Brien |
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Conditions under equity release contracts |
1. Good repair and material changes 2. Repairs and maintenance 3. Duty to ensure the property 4. Duties of compliance 4. Subletting |
