Glossary Of Moving Home Terms

Glossary Of Moving Home Terms

Glossary Of Moving Home 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

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B

Bank draft

The payment of funds guaranteed by a bank

Bridging loan

A short term loan

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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

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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

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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

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F

Freehold

Outright ownership of a property and the land on which it stands

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G

Ground rent

Annual payments made to a landlord. This applies only to leasehold properties

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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

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I

Intestate

Dying without having made a will

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J

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

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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

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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

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N

NHBC

National House Builders Council. The NHBC provide a ten year warranty against major structural defects for new properties

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O

Office copy entries

Certified copies of the land or charge certificate, obtained from the Land Registry, confirming ownership of the property

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P

Personal representative

The person appointed by a will to act for the deceased owner

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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

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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

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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

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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

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U

Underlease

A leasehold term which is granted from a longer leasehold term

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V

Valuation

An assessment of a property's value

Vendor

The Seller

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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

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