Whether you've bought or sold a property before or not, there's lots of lingo to get your head around. Hopefully my explanations of these terms will help you.
Tax relief available on interest payments on the first £30,000 of your mortgage. Phased out in April 2000 by the Government.
This is the document that contains all the details and terms and conditions of the tenancy. It is also known as a rental agreement. An AST is a form of tenancy agreement. It is a legally binding document.
This is when a purchaser wants to gain access to the property before legal completion. This can be for anything from measuring up to actually beginning renovations etc. This can be organised formally through the solicitors and a licence arranged between both the vendor and the buyer. In this situation the buyer sometimes agrees to pay an appropriate rate of interest on the balance of money owed for the property (i.e. the purchase price of the property less the deposit that they have already paid). They will pay this instead of paying rental.
A tenant is a person or persons (can be a company or organisation) who is entitled to occupy a property under the terms and conditions of a tenancy agreement.
This is when two or more people are co-owners of a property. When one dies, their share of the property automatically passes to the other/others.
This is when an asking price is not stated but offers are invited in writing. There will be a set time and date for the offers to be opened and it will usually be in the presence of the vendor’s solicitor. Normally an acceptance of an offer by the vendor constitutes an immediate agreement subject to contract.
This is relating to whether a property is freehold or leasehold, it denotes the type of ownership a property has.
The period that the mortgage will last for.
This is a policy/insurance that repays the mortgage in the event of the insured person’s death.
The legal right to ownership of a property.
This is the highest form of tenure available. (see a bit further up this property glossary page for an explanation of tenure).
This is a summary of the title documentation that is used in the conveyancing of unregistered properties to prove that the vendor has the right to sell that particular property.
These are legal documents that describe the rights and the liabilities that are attached to a property and they also prove ownership of a property.
A report from the land registry that confirms that the title of a property is acceptable. This is a vital certificate that a lender must have before they will issue the cheque for mortgage monies.
This is a mortgage that moves in line with the Bank of England base rate and for a set period of time.