Quick Knowledge Check

Before moving on, take a moment to reflect on what you’ve learned in this module. The short quiz below is designed to help you track your understanding and highlight anything you may want to revisit.

QUIZ

1. What does owning a property as a"freehold" mean?

A. You rent the property from the council

B. You own the property but not the land it's on

C. You share ownership with a housing association

D. You own both the property and the land it stands on

E. You lease the property for 99 years

2. What is a key feature of a leasehold property?

A. The owner also owns the land

B. The property is owned outright with no time limit

C. Ownership is shared with a bank

D. The property is owned for a fixed number of years

E. The property has no maintenance fees

3.What does an NHBC warranty typically cover?

A. Legal fees during purchase

B. Council tax relief

C. Energy bills

D. Structural defects in new-build homes

E. Interest on mortgage repayments

4. What does "peppercorn ground rent" mean?

A. High annual rent on luxury flats

B. Ground rent indexed to inflation

C. A very small or nominal ground rent amount

D. A rent paid in agricultural land leases

E. Rent paid using physical goods

5. Who is eligible for the First Home Scheme in the UK?

A. Only investors buying multiple properties

B. First-time buyers earning under a certain income threshold

C. Anyone who has previously owned a home

D. Foreign buyers looking for a holiday home

E. People buying properties worth over £1 million

6. What does shared ownership typically involve?

A. Buying a home with a group of friends

B. Renting part of a property while owning the rest

C. Sharing one mortgage between two unrelated parties

D. Owning a full property jointly with the local council

E. Renting to own with no ownership rights

7. What is the primary purpose of a buy-to-let property?

A. To live in as a primary residence

B. To renovate and immediately resell

C. To rent out to tenants as an investment

D. To gift to a family member

E. To use as a short-term holiday rental only

8. How long does a typical new-build home warranty last in the UK?

A. 2 years

B. 5 years

C. 10 years

D. 15 years

E. Lifetime coverage

9. What does it mean to own a property as a freehold?

A. You own the building but not the land

B. You lease the land for a fixed number of years

C. You own both the property and the land indefinitely

D. You must pay annual ground rent

E. You only own the interior of the property

10. What is a typical minimum deposit for a residential mortgage in the UK?

A. 1%

B. 5%

C. 15%

D. 25%

E. 40%

11. What is a key characteristic of leasehold ownership?

A. You own the land and property outright

B. You pay no service charges or ground rent

C. Ownership lasts for a set number of years

D. You must renew your lease every year

E. It is the same as renting

12. What does "buying off-plan" mean in property?

A. Purchasing a home that has already been lived in

B. Buying a property based on plans before it's built

C. Renting a home with an option to buy

D. Purchasing a furnished show home

E. Paying for land only, not the property

13. What are the 3 key factors when purchasing a new home?

A. Good location

B. Whether it has a spa

C. Easy commute

D. If it is located in zone 1

E. Affordability

Answers:

1.D, 2. D, 3. D, 4. C, 5. В, 6. B, 7. C, 8. С, 9. С, 10. В, 11. C, 12. В, 13. (A, C, E)