| Advance |
The mortgage loan. |
| Collective enfranchisement |
A group of lessees buy the freehold of the building they live
in.
|
| Contract |
A written agreement to sell / buy a property.
|
| Completion |
When you become the legal owner of a
property. |
| Conveyancing |
The legal work involved in buying and selling a
property.
|
| Deposit |
A part of the purchase price - usually 5% or 10% - which is
paid to the seller when contracts are exchanged. You do not
pay a deposit if you are buying your home from the
Council.
|
|
|
Fees which your solicitor collects from you and pays on your
behalf, including stamp duty, Land Registry fees and search
fees. |
Equity
|
The difference between the value of your home and the amount
of money borrowed on it.
|
| Exchange of contracts |
The point at which the buyer and seller of a property
become legally bound to proceed. You do not exchange
contracts if you are buying your home from the Council.
|
| Freehold |
The ownership of a property and the land it is on, with no time
limit. |
| Freeholder |
The owner of a freehold property. |
| Ground rent |
A yearly fee paid by lessees to their landlord. |
| Guarantor |
A person (often someone in your family) who guarantees that
your mortgage payments will be made. |
| Homebuyer's report |
A more detailed valuation report.
|
| Land Registry fee |
A fee paid to the Land Registry to register ownership of a
property. |
| Lease |
A legal document that sets out the rights and
responsibilities of a lessee and their landlord. |
|
Leasehold
|
The ownership of a property (usually a flat or maisonette) for
a fixed number of years. |
| Legal fees |
The charge made by a solicitor to carry out the
conveyancing.
|
| Lessee /
leaseholder |
The owner of a leasehold property. |
| Mortgage |
A loan to buy a property. |
| Mortgage offer |
The formal paperwork that your lender sends you, offering you a
mortgage. |
|
Mortgage
term
|
The length of the loan. |
| Mortgagee |
A lender - a bank or building society giving a mortgage. |
| Mortgagor |
Someone who borrows money to buy a home. |
Service
charges
|
An amount you pay to your landlord to cover the day-to-day
running and maintenance of shared areas of your building and
estate. |
| Stamp
duty |
A Government tax that you pay when you buy a property which
costs more than £125,000.
The tax is 1% of the purchase price if the property costs
between £125,001 and £250,000, 3% if it costs between
£250,001 and £500,000, and 4% if it costs more than
£500,000.
|
| Tenancy - introductory and secure |
Most tenants are introductory tenants for the first year.
After a year you usually become a secure tenant unless there
has been a problem, for example, you have not been paying your
rent.
|
| Valuation |
A basic inspection of a property to assess its
value. |
| Vendor |
The person who owns the property being sold. |
