Chapter 16 Multiple choice questions

You act for a buyer of a new leasehold flat in a large block of flats in Birmingham with the aid of a NatWest mortgage. You are approving the draft lease terms. Which of the following lease covenants and provisions would you not accept?

The use should be limited to that appropriate to the subject property (i.e. residential) and in accordance with planning laws.

A forfeiture on bankruptcy provision.

An absolute covenant not to assign part of the subject property

The lease term is expressed to be for a period of 85 years (less ten days)

Your clients Grand Standard Estates Limited intend to sell the freehold reversion of a block of residential flats in Newcastle. All 25 flats in the block are let on 99-year leases that were sold off last year. A willing buyer has offered the asking price and is anxious to complete immediately. How would you advise your client to proceed?

Dispense with the contract and go straight to the transfer and completion in the next few days.

Allow the purchaser to take over management now by way of a formal licence to manage and to complete the transfer by the end of the week.

Exchange and complete simultaneously within the next few days.

Allow the buyer to take over the property once contracts have been exchanged in the next few days, in anticipation of completion thereafter.

None of the selections apply.

You act for the seller of a residential leasehold flat in Swindon. It is a 99-year lease with 80 years unexpired and is registered with absolute title. Which of the following documents will you not normally send to the buyer's practitioner at the start of the transaction?

A copy of the lease.

An official copy of the title registers.

An official copy of the freehold title registers.

A draft contract in duplicate.

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