a b c d e f g h i j l m n o p r s t u v

We have put together a short glossary for you, to help explain some of the terms you may come across.  We like things to be simple, simply straightforward.

Advance - Mortgage Loan

APR – Annual Percentage Rate, the total cost of a loan, to include all costs, arrangement fees and  interest charges,  this is then shown as a percentage rate so that you can then compare this like for like with other rates.

Balance Outstanding – The Amount of loan outstanding after a given period of time

Bridging Loan – A short term funding solution

Building Insurance – The cover is for the value of reconstructing your home from the ground up should your property be affected by fire, thunder or lightening. The insurance cover may include other perils. Normally the Lender will also be included on the policy [this will depend on your mortgage conditions].

Chain – There could be other people involved in selling their home at the same time as you, and as such one cannot move without the other. This will normally require for all parties to coordinate their sale and purchase. If one party does not sell or another does not buy, then the whole chain could adversely be affected.

Completion Date – This is the date that all funds have been transferred, all paperwork completed and keys released.

Contents Insurance – This covers against accidental damage and theft of all movables, including furniture, soft furnishings and appliances. This is a different type of policy compared to building Insurance.

Contract – A Legal Agreement between the Buyers and the Seller, drafted by Solicitors / Conveyancers setting out contractual terms and conditions.

Conveyancer – A person other than a solicitor who is qualified to act in the sale or purchase of a property.

Conveyancing – This is the name given to the work that is carried out by the conveyance, in in buying and selling properties.

Council Tax – This is the sum that is charged by the Local Authority for the cost of local amenities and services. Your Property will have a council tax band, you can request this information from us or alternatively liaise with the local authority.

Covenant – A condition contained with the Lease that the Buyer must comply with, such condition is normally passed on to subsequent owners for the duration of the lease period, subjective to its wording. A restrictive Covenant prohibits the owner from doing something.

Deeds – Legal documents which help define ownership and boundary of a property / land.

Deposit – This is the sum of money that a buyer puts forward when purchasing the property.

Disbursements – This includes fees such as Stamp Duty, Search Fees, Land registry fees. These fees are normally treated as being separate to the standard Legal Fees charged by a Solicitor or Conveyancer in the purchase and or sale of a property.

Draft Contract – A preliminary contract which will then be edited to include the necessary information as required.

Early Repayment Charge – A charge made by the Lender, subject to the individual mortgage contract that allows the Lender to charge a fee which may be calculated as a fixed fee or a percentage fee of the sum borrowed if the borrower redeems the mortgage before a certain time period.

Energy Performance Certificate – Also known as an EPC is a Legal requirement for the Seller to provide to the Buyer. The certificate includes recommendations on ways to improve the home’s energy efficiency to save money. It also allows you to understand how efficient the property is and the likely cost of heating the property.

Equity – The difference between the value of your property and the mortgage that is owed.

Exchange of Contracts – This is when the sale become legally binding on all parties. Neither party can withdraw without financial repercussions; normally 10% of the property purchase price is paid over from the Buyers Solicitor to the Sellers Solicitor to show consideration for an Exchange of Contracts.

Fixtures and Fittings – This refers to the nonstructural items that are included in the sale.

Freehold – The ownership of the land that the property sits on

Gazundering – This is when a Buyer lowers their offer just before exchange of contracts

Ground Rent – The annual fee paid to the freeholder

IFA – Independent Financial Adviser

Joint Mortgage – When there is more than one person on the Mortgage

Land Registry – A government Body that holds the records of all registered properties in England and Wales.

Leasehold – This means that you are purchasing the property that the Land sits on. The land will be on a lease, normally 999 years, you will then pay rent to the Landowner. Normally the rent is at a peppercorn rent, which means it is very low value.

Maintenance Charge – This refers to the cost that is charged for the upkeep of a Leasehold Property. This is more common with apartments, and is normally apportioned to the number of units within.

Mortgage Deed – This is a Legal document that relates to the Mortgage lenders interest in the Property.

Mortgage Offer – A formal written offer made by a Bank or Building Society to lend an approved amount against a property.

Offer – This is a bid made on a Property – It is not Legally binding.

Offers Over – Offers invited over the price advertised.

Ombudsman – We are members of the Property Ombudsman Scheme and prescribe to their code and conduct of ethics.

Private Treaty – This is the process of whereby most house sales are completed in England and Wales.

Property – This could be your home, or the property you are looking to purchase.

Properties Discounted – This is us, we specialise in selling properties that have been discounted fast.

Repayment Mortgage – Monthly interest combined with capital repayment against the original sum borrowed, this figure may also include you loan arrangement fees, provided they have been added.

Retention – This is when part of the Mortgage Advance is held back until the repair works to the property have been completed to the satisfaction of the Lender.

Sale Agreed – A verbal Agreement from the seller that he has accepted the Offer.

Searches – A check on local authority records against planning applications, highways, restrictions and land charges. Your solicitor may request further searches such as chancel, utilities, drainage if they feel this is appropriate. Searches will cost you extra and you must factor this in.

Solicitor – A legal expert, regulated by the Law society who is able to act for the purchase or sale of a property.

Stamp Duty -  a tax paid to the government on the purchase of a property. The fee paid is calculated as a percentage, which varies according to the purchase value of the property.

Subject to Contract – This is when an offer has been accepted, but contracts have not yet exchanged. It is therefore not legally binding.

Survey – An inspection made by a qualified surveyor.

Tenants – People who are living in a property owned by someone else.

Tender – This is when written offers are invited for a property by the Seller, and as such all written offers are to be received by a set closing date.

Title – This shows and demonstrates who the Legal owner is., evidence of which is normally attached with the title deeds. If the property is registered then a copy of this can be obtained from Land Registry.

Under Offer – This is when an offer has been accepted by the Seller, but contracts have not yet exchanged.

Variable Interest Rate – Rate of interest rate that fluctuates over time in line with general interest rates.

Vendor – This is another name to describe the Seller

We hope you have found this glossary informative and useful. If you come across any other property term and are unsure about its meaning then please feel free to contact us and we will be more than pleased to help explain it you.