R01 Ownership of property: free practice questions

1. Question 1 of 5

   What is the main difference between freehold and leasehold ownership?

   Option A: There's no practical difference, as both give outright ownershipOption B: Freehold owns land and building outright; leasehold holds them for a set termOption C: Freehold lasts for 99 years, while leasehold continues indefinitelyOption D: Leasehold owns land and building outright; freehold covers only the building

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   The answer is B: Freehold owns land and building outright; leasehold holds them for a set term

   A freeholder owns the building and the land outright. A leaseholder holds it for a term (often 99 or 125 years), after which it reverts to the freeholder.

   Why the other options are wrong

   A

   The difference matters, especially for short leases and lending.

   C

   Freehold has no set term; leases do.

   D

   This reverses the two forms.

2. Question 2 of 5

   Under commonhold, who owns the land, building and common parts of a block of flats?

   Option A: A freeholder, who leases the common parts to the unit-ownersOption B: The individual flat owners, holding as tenants in commonOption C: The Commonhold Association, whose members are the unit-ownersOption D: The local authority, which manages the building for residents

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   The answer is C: The Commonhold Association, whose members are the unit-owners

   Under commonhold, unit-owners own their flats in perpetuity and are members of the Commonhold Association, which owns and manages the land, building and common parts.

   Why the other options are wrong

   A

   Commonhold was designed as an alternative to leasehold, with no freeholder.

   B

   The Association, not the flat owners individually, owns the common parts.

   D

   The local authority isn't the owner under commonhold.

3. Question 3 of 5

   What did the Leasehold and Freehold Reform Act 2024 change about extending a lease or buying the freehold?

   Option A: It doubled the ownership requirement from two years to four yearsOption B: It made the right available only to owners of three or more flatsOption C: It removed the need to have owned the property for two years firstOption D: It limited the right to leases with under five years left to run

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   The answer is C: It removed the need to have owned the property for two years first

   Previously a leaseholder had to own the property for two years before using these rights. The 2024 Act removed that requirement, extended standard lease terms to 990 years, made buying the freehold simpler and cheaper and improved service charge transparency.

   Why the other options are wrong

   A

   The two-year requirement was removed, not extended.

   B

   There's no requirement to own several flats.

   D

   The right doesn't depend on the lease being nearly expired.

4. Question 4 of 5

   A married couple own their home as joint tenants. One dies, leaving a will giving everything to their children. What happens to their share of the home?

   Option A: It passes to the children, as set out in the willOption B: It's divided equally between spouse and childrenOption C: It passes to the Crown, as joint property can't be left by willOption D: It passes automatically to the surviving spouse

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   The answer is D: It passes automatically to the surviving spouse

   Under a joint tenancy, the deceased's share passes automatically to the surviving joint owner without probate, regardless of the will.

   Why the other options are wrong

   A

   The survivorship rule overrides the will for jointly held property.

   B

   The share isn't divided; it passes to the survivor.

   C

   The Crown takes property only when there are no relatives under intestacy.

5. Question 5 of 5

   Which statement about the First Homes scheme is correct?

   Option A: The discount stays with the home, so it can only be sold to first-time buyersOption B: Anyone can buy a First Home, whatever their household incomeOption C: Buyers receive a 10% discount, which they must repay in full when they sellOption D: There's no price cap, as long as the buyer is a first-time buyer

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   The answer is A: The discount stays with the home, so it can only be sold to first-time buyers

   First Homes gives eligible first-time buyers 30–50% off. The discount applies on resale too, so it must be sold to first-time buyers. Household income limits (£80,000, or £90,000 in London) and price caps apply.

   Why the other options are wrong

   B

   Household income must not exceed £80,000 (£90,000 in London).

   C

   The discount is 30–50% and doesn't have to be repaid.

   D

   There's a price cap of £250,000 (£420,000 in London) after the discount.

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