Glossary of moving home terms
Buying and selling your house terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Advance
The payment of mortgage monies by a lender
APR
Annual Percentage Rate. A yardstick to help compare interest rates among lenders. It takes into account extra items such as booking fees
Assignment
The transfer of a lease
Back to top
B
Bank draft
The payment of funds guaranteed by a bank
Bridging loan
A short term loan
Back to top
C
CHAPS payment
The electronic payment of funds in cleared form by one bank to another
Charge
A debt secured on the property. Monies borrowed from a lender for the purchase of a house are usually secured against the property
Charge or Land certificate
The main ownership document of the property
Collateral
Security pledged for repayment of a loan
Common land search
Enquiries to establish if anyone has any rights of grazing or fishing over a property
Completion
The day on which the purchase of a property happens. The day that you move
Condition of sale
A legal term of the contract governing the purchase
Contract
The legally binding agreement between buyer and seller
Conveyancing
General term for the legal process of buying and selling land
Covenants
Rules and conditions contained in the deeds that relate to the use of the property
Creditor
Someone who is owed money
Back to top
D
Deed of covenant
A document stating that someone will comply with the rules and conditions affecting a property
Deposit
Part of the purchase price which is paid on exchange of contracts to confirm commitment to the purchase
Back to top
E
Easement
A right granted over another's property (such as a right of way)
Encumbrance
An (usually unfavourable) obligation affecting a property
Endowment mortgage
A mortgage covered by a policy that is designed to pay off the capital owed on the mortgage by the end of the term of the mortgage
Engrossment
A document in its final form to be signed by all relevant parties
Exchange of contracts
The stage at which the transaction between the seller and the buyer becomes legally binding
Back to top
F
Freehold
Outright ownership of a property and the land on which it stands
Back to top
G
Ground rent
Annual payments made to a landlord. This applies only to leasehold properties
Back to top
H
Headlease
A leasehold term that is granted out of the freehold estate. The Headlease may be subject to subleases
Homebuyer survey
This report is less detailed than a full building survey. It gives general details of a porperty i.e. age, state of repair and valuation. Most Lenders will accept this sort of report
Back to top
I
Intestate
Dying without having made a will
Back to top
J
Joint tenants
Joint tenants When property is owned by two people as "joint tenants", on the death of the first of those people, the property passes outright to the survivor regardless of what is contained in the deceased's will
Back to top
L
Landlord
One who owns property and rents it to others
Land Registry
A government department which maintains the national property register
Lease
A document made between a landlord and a tenant, setting out the terms of occupation of a property
Leasehold
The occupier owns the right to reside in a property for a fixed term but does not own the land on which it stands
Licence to assign
The formal permission given by a landlord for a buyer to purchase the leasehold of a property
Local search
Enquiries made of a local authority concerning planning and services
Back to top
M
Management company
A company formed to comply with a landlords' obligations under a lease
Mortgage
A loan secured against a property. In the event of non-payment, there is usually a right to sell the property
Mortgage indemnity policy
An insurance policy taken out by a mortgagee to cover any loss in the event of a forced sale. Usually, the company providing the policy has the legal right to recover the loss from the borrower
Mortgage protection policy
An insurance policy which guarantees mortgage payments in certain circumstances such as unemployment
Mortgagee
A money lender, such as a building society or bank, who secures the loan against a property
Mortgagor
The borrower who gives security to the lender
Back to top
N
NHBC
National House Builders Council. The NHBC provide a ten year warranty against major structural defects for new properties
Back to top
O
Office copy entries
Certified copies of the land or charge certificate, obtained from the Land Registry, confirming ownership of the property
Back to top
P
Personal representative
The person appointed by a will to act for the deceased owner
Back to top
Q
Quarter days
A lease will often specify that the rent and/or service charges are payable on "the usual quarter days". The usual quarter days are: 25 March - Lady Day, 24 June - Midsummer Day, 29 September - Michaelmas, 25 December - Christmas
Back to top
R
Redemption
Paying off a mortgage
Registered land
Land which is registered has its ownership details recorded at the Land Registry
Repayment mortgage
A mortgage where the borrower makes interest and capital payments to the lender
Requisition on title
Queries raised about the ownership of the property and how that ownership will be transferred
Retention
Monies held back from a mortgage advance pending completion of conditions attached to the mortgage offer
Back to top
S
Service charge
Money requested by a landlord for repairs and maintenance to a property
Stamp duty
A tax charged to buyers purchasing properties for more than £125,000.00
Subject to contract
Negotiations which do not become binding until contracts are exchanged
Structural survey
An assessment of the essential framework of a building
Back to top
T
Tenant
A person who pays rent to another for the use of a property or land
Tenants in common
Where two or more people own a property as "tenants in common", and one of those people dies, the deceased's share of the property will pass according to what has been stated in the deceased's Will (or according to the rules of intestacy, in the event of no will having been made)
Tenure
The type of property: Freehold or leasehold
Term
A period of time, such as the length of a mortgage
Title
The documentary history of the ownership of a property
Transfer
An assessment of a property's value
Back to top
U
Underlease
A leasehold term which is granted from a longer leasehold term
Back to top
V
Valuation
An assessment of a property's value
Vendor
The Seller
Back to top
W
Will
Everyone should make a Will regardless of the value of their assets. If you die without making a Will then the law will deal with your Estate and how it is divided and this may not be in accordance with your wishes. Contrary to popular belief under the law everything does not automatically pass to a wife when her husband dies