Download Unit 2 LIBF CS 1 - Femi Questions Case Study Knowledge Exam Solved and more Exams Nursing in PDF only on Docsity! Unit 2 LIBF CS 1 - Femi Questions Case Study Knowledge Exam Solved A plus Score Assured What is a buy-to-let mortgage? - Correct Answer A mortgage for renting out a property. What are the conditions to be eligible for a buy-to-let mortgage? - Correct Answer Good credit record, evidence of employment income, and rental income should cover 125% of mortgage repayments. What is the minimum deposit for a buy-to-let mortgage? - Correct Answer Usually 25% of the property's value. What is the maximum age requirement for a buy-to-let mortgage? - Correct Answer Usually around 75 years of age. What is the purpose of Femi's property investment? - Correct Answer To spread the risk and help young professionals. Unit 2 LIBF CS 1 - Femi Questions Case Study Knowledge Exam Solved A plus Score Assured Why do lenders consider buy-to-let mortgages as higher risk? - Correct Answer Because of the potential for rental income to fluctuate. What is the typical income requirement for a buy-to-let mortgage? - Correct Answer Around £25,000+ a year. What is the rental income requirement for a buy-to-let mortgage? - Correct Answer It should cover 125% of mortgage repayments. What are the key differences between a buy-to-let mortgage and an ordinary mortgage? - Correct Answer Higher fees and interest rates, and a higher minimum deposit. Unit 2 LIBF CS 1 - Femi Questions Case Study Knowledge Exam Solved A plus Score Assured How many children does Femi have? - Correct Answer Femi has two children. How did Femi acquire the property she currently rents out? - Correct Answer inherited the property from her mother, Rosa. How has Femi converted the property she inherited? - Correct Answer Femi has converted the property into three studio flats with a shared bathroom and kitchen. How much does Femi initially advertise each studio flat for? - Correct Answer £600 per month. Unit 2 LIBF CS 1 - Femi Questions Case Study Knowledge Exam Solved A plus Score Assured How long has Femi been renting out the property? - Correct Answer 3 years What is Femi's current savings balance? - Correct Answer £50,000 in her savings account. What are some conditions to be eligible for a buy-to-let mortgage? - Correct Answer Some conditions include owning a home, having a good credit record, providing evidence of income separate from rental earnings, and ensuring the rental income covers 125% of mortgage repayments. How do buy-to-let mortgages differ from ordinary mortgages? - Correct Answer Buy-to-let mortgages have higher fees and interest rates, require a higher minimum deposit (usually 25% of the property's value), Unit 2 LIBF CS 1 - Femi Questions Case Study Knowledge Exam Solved A plus Score Assured and are often interest-only, meaning only the interest is paid monthly with the original loan repaid in full at the end of the term. What factors should Femi consider before investing in a buy-to-let property? - Correct Answer Femi should consider factors such as budgeting for potential costs, understanding legal responsibilities, knowing tenant rights, choosing the target market, and selecting the appropriate location for the investment property.
