Glossary
Abstract of TitleA schedule listing the documents which set out the history of ownership of a property.
Adopted HighwayA road maintained by the local authority.
AdvanceThe original amount of the loan.
AssentA formal document required to transfer ownership of property to a person entitled to the property following the death of the owner.
Assured Shorthold TenancyA special form of tenancy agreement designed to simplify the process of obtaining vacant possession of the property at the end of the agreed tenancy period.
AttorneySomeone appointed formally to act on behalf of another either generally or for a specific purpose.
Bankruptcy SearchA search of the Land Charges Register to see if any bankruptcy proceedings are pending or established against a person.
Base RateThe basic rate of interest upon which other interest rates are based.
BorrowerSee
Mortgagor.
Brine SearchA search to establish if a property might be affected as a result of salt workings near the property.
Building Regulation ConsentApproval by the local authority on the design, structure and materials used in building work.
BuyerSomeone who buys a property.
Capped RateA mortgage interest rate which is a variable rate but capped at a maximum upper limit usually for a limited period.
CashbackA sum of money usually paid by the lender on completion of a mortgage.
ChainWhere a property seller is also buying another property this is a chain of transactions and some chains can have many links.
Commons Registration SearchA search at the local authority to check the property is not registered as common land or part of a village green which may therefore mean there are third party rights over the property (e.g. grazing) resulting in the enjoyment of the property being limited.
CompletionThe moment when the buyer becomes the new owner of the seller's house and the seller must have left the property.
Completion StatementA written calculation of all the receipts and payments due in respect of the transaction.
Contaminated LandLand affected by contamination which could arise from a past use of a property (e.g. oil refinery) or by things stored on the property in the past (e.g. petrol station).
ContractThe form of legal agreement prepared in duplicate for signature by the seller and buyer setting out all the legal rights and obligations agreed between them.
ConveyanceA document transferring ownership of an unregistered property from one person to another.
ConveyancingThe legal work needed to buy and sell properties.
CovenantsLegal obligations.
Deed of CovenantA document confirming an agreement to pay or do something.
Deed of GiftA document transferring the ownership of property from one person to another without any payment being made for it.
Deed of GuaranteeA document used where one person agrees to be responsible for someone else's debt or mortgage obligations if that person fails to carry out their own obligations.
Deed of Postponement or PriorityWhere a mortgagee agrees to their mortgage ranking after another lender's mortgage.
DeedsThe official documents confirming who owns a property which are in the possession of the owner or mortgagee if the property is mortgaged.
DepositThe agreed amount to be paid on exchange of contracts usually forfeited if the buyer fails to complete.
DisbursementsPayments made on your behalf e.g. search fees.
Discount RateA mortgage interest rate which will rise and fall with the variable rate but which will always be the discounted amount below the variable rate.
Endowment MortgageA mortgage where you pay the interest on the mortgage only and a premium towards an endowment policy. The policy is then intended to pay off the original amount borrowed at the end of the mortgage term.
Endowment PolicyAssurance providing for the payment of a lump sum on death or maturity.
Environmental SearchA search against a property to check whether there is any record kept to suggest that the property may be affected by contamination or other environmental issues.
EquityUsually means the difference between the value of a property and the amount owed to the mortgagee.
Exchange of ContractsThe formal exchanging of the two parts of the contract when the seller and buyer become legally bound to complete on an agreed date and in the case of the seller, to move out of the property.
Fixed Rate MortgageA mortgage interest rate where the mortgagee agrees to charge a fixed rate of interest over a given period whether or not the variable rate changes.
Fixtures Fittings & Contents FormA standard form where the seller sets out all those items in the property which they have agreed to leave as part of the sale price and which is attached to and forms part of the contract.
Flying/Creeping FreeholdThis arises when part of one property is built on top of part of another property and so the upper property owner does not own the building or land underneath the "flying" part. Consequently the lower property is known as the "creeping" part.
FreeholdAbsolute ownership in land.
FreeholderThe person who owns the freehold title.
Full Title GuaranteeAn assurance by the owner of unfettered ownership.
Further AdvanceAn additional amount lent to the mortgagor under the terms of the original mortgage.
Ground RentThis is paid by a lessee to a lessor where a property is leasehold and is usually expressed as a yearly sum.
High Loan to Value FeeThis is sometimes charged by a mortgagee where a borrower borrows more than a certain percentage of the value of a property to insure the mortgagee only against loss arising if the property is sold by them due to the borrower's failure to pay the mortgage.
Index MapA search at Land Registry of the Index Map can be made to establish if a property is registered or unregistered.
Interest Only MortgageA mortgage whereby interest only is paid to the mortgagee and the capital amount of the original loan is repaid at the end of the mortgage term either by an endowment policy maturing or a pension or other savings plan maturing.
Land Charges SearchIf a property is unregistered a search at the land charges registry is made to see if a person has any bankruptcy proceedings pending or established or to see if there are any mortgages or interests registered which affect the property.
Land RegistryA government organisation maintaining a register of properties and their ownership in England and Wales.
Land Registry FeeThe fee payable to the Land Registry to register any change affecting the property including a change of ownership.
Land Registry SearchA search at the land registry to check that no undisclosed charges or interests are registered against the property.
LandlordSee
Lessor.
LeaseWhere a property is leasehold this is the document giving the lessee the rights to possession of the property for the lease term and setting out all the rights and obligations.
LeaseholdWhere the ownership of property is for a limited period only. For example 99 years or sometimes 2000 years. Possession of the property will be subject to the payment of an annual ground rent.
LeaseholderSee
Lessee.
Legal ChargeSee
Mortgage.
LenderSee
Mortgagee.
LesseeWhere a property is leasehold the lessee means the current owner of the leasehold property as opposed to the freeholder or landlord whose interest is subject to the lessee's right of occupation until the lease term has come to an end.
LessorThe person who owns the superior title and is entitled to the ground rent under the lease and possession of the property at the end of the lease term.
Limited Title GuaranteeThis is the title guarantee given by a seller where because of their limited knowledge of the property the full title guarantee cannot be given (e.g. a personal representative of a deceased owner or a mortgagee in possession).
Local SearchA search carried out at the local authority to check whether there have been any notices registered affecting the use of the property or any proposals for the neighbourhood which may directly affect the property.
Mining SearchA search to check whether the property may be affected by coal mining activity which may result in subsidence.
MortgageA loan to buy a house or flat where the mortgagee lends the mortgagor money in return for a legal charge being registered against the property to ensure that the loan must be repaid before the property can be sold.
Mortgage DeedThe document signed by the mortgagor to create a legal charge which the mortgagee can register at the land registry.
Mortgage OfferThe details of the terms upon which the mortgagee is prepared to make the mortgage loan.
Mortgage TermThe length of time agreed for the repayment of the loan.
MortgagedWhere a property has been charged by the owner or mortgagor to the mortgagee.
MortgageeSomebody who gives someone a mortgage (e.g. a bank or building society).
MortgagorSomebody who takes out a mortgage (a borrower).
Occupier's ConsentAny person who lives at the property but will not be signing the mortgage deed will be asked to consent to the mortgage being taken out and agree to move out if the mortgagee takes possession due to the default of the mortgagor.
Party WallA wall owned jointly with a neighbour and repairable at shared expense.
Planning PermissionApproval by the local authority to the building or change of use of a property or extension to an existing property.
Power of AttorneyThe document to be signed by somebody to appoint somebody else to act as their attorney.
Private RoadA road maintained by property owners rather than by the local authority. The property owners need to have rights over it as it is not necessarily a public access.
Property Information FormA document completed by a seller to give information about the property to the buyer (e.g. who maintains boundaries and whether there have been any disputes).
PurchaseThe buying of a property.
PurchaserSee
Buyer.
Radon GasA naturally occurring radioactive gas which may if above certain safety levels require preventative action to be taken (e.g. more ventilation in a property).
RedemptionThe repayment of an existing mortgage.
Redemption PenaltyA penalty charged by a mortgagee when you redeem a mortgage within a fixed rate, discounted rate or cashback period.
Registered LandProperty which has already been registered at the Land Registry.
RemortgageChanging a mortgage from one mortgagee to another.
RentchargeSome freehold properties are subject to a rentcharge payable to the rentcharge owner. This may be to ensure income for the original land owner without the existence of a lease or it can be to ensure that estate covenants can be enforced more easily.
Repayment MortgageA mortgage where the mortgagor repays both interest and some of the initial capital borrowed each month.
Reservation FeeAn administration fee charged by some mortgagees to cover the cost of reserving a mortgagor's entitlement to a loan on certain terms or possibly a fee paid to a builder to reserve a particular new property.
SaleThe sale of a property.
SellerSomeone who sells a property.
Service ChargeA payment required by a lessor or managing agent to cover the costs of maintaining and running a development (e.g. gardening and decorating and also insuring a block of flats).
Smoke Control OrderAn order made by the local authority designating an area to be one in which only smokeless fuels may be burnt (i.e. not coal or wood).
Stamp DutyA tax paid to the government on the purchase of a property over a certain value.
SubsidenceWhere a property moves due to inadequate foundations or severe change to the underlying ground resulting in an instability in the structure of a building often evidenced by cracks in walls.
SurveyAn inspection and report on the property by a surveyor as to the state of the property and value.
TenantSee
Lessee.
Term AssuranceLife insurance which only lasts the term of the mortgage.
Tin SearchA search to establish whether the property may be affected by tin mining activity which may result in subsidence.
TitleThe owner's right to a property.
Title DeedsSee
Deeds.
TransactionA dealing with property (e.g. sale or purchase).
TransferA document which transfers ownership of a property from one person to another.
Transfer of EquityA document transferring ownership of a share or interest in a property from one person to another.
Tree Preservation OrderAn order made by the local authority designating a tree or group of trees as protected and requiring the local authority's permission to lop or fell them.
Unregistered TitleWhere the title to a property has not previously been registered at the Land Registry and ownership is proved by the production of a complete chain of documents showing successive ownership.
Vacant PossessionPossession of a property free of the presence of any people, possessions or rubbish.
ValuationA very simple form of survey designed to establish the market value of the property.
Variable RateA mortgage interest rate which is variable and which is set by each individual mortgagee.
VendorSee
Seller.
Wayleave AgreementA formal agreement entered into with a property owner to give a service provider (e.g. Electricity or Telephone company) a right for their pipe or cable to pass through or over their property.