Brief explanation of legal terms 

Additional Enquiries:  These are extra enquiries over and above the standard property information form which a conveyancer deems it absolutely necessary to raise with the seller's conveyancer.

Abstract of Title:  A schedule listing the documents which set out the history of ownership of a property.

Adopted Highway:  A road maintained by the local authority.

Advance:  The original amount of the loan.

Apportionment for Fixtures and Fittings:  This is the allocation of part of the price of a property to the value of contents that are being included in the sale. For example you might agree that of a £200,000 purchase price, £1000 was allocated to carpets and curtains and £199,000 for the house. The purchaser would then only pay Stamp Duty Land Tax on the sum of £199,000. However, please note that it is illegal to apportion more than the correct second-hand value of the goods in this way, and Inland Revenue operate a strict scrutiny over all such arrangements. It is now illegal to make an apportionment for anything classed as a "Fixture" (see below).

Assent:  A formal document required to transfer ownership of property to a person entitled to the property following the death of the owner.

Assured Shorthold Tenancy:  A 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.

Attorney:  Someone appointed formally to act on behalf of another either generally or for a specific purpose.

Bank Transfer Fee:  Fee charged for transferring money electronically from one bank to another, usually on completion day.

Base Rate:  The basic rate of interest upon which other interest rates are based.

Borrower:  See mortgagor.

Brine Search:  A search to establish if a property might be affected as a result of disused workings near the property.

Building Regulation Consent:  Approval by the local authority on the design and materials used in building work.

Buildmark Warranty:  The Buildmark Warranty is a ten year insurance policy which covers you in the event that the property has not been constructed in accordance with NHBC standards

Buyer:  Someone who buys a property.

Capped Rate:  A mortgage interest rate which is a variable rate but capped at a maximum upper limit usually for a limited period.

Cashback:  A sum of money usually paid by cheque by the lender on completion of a mortgage.

Chain:  Where a property seller is also buying another property this is a chain of transactions and some chains can have many links.

Charge Certificate:  An official certificate issued by the land registry where a property is registered detailing the ownership mortgages and interests in the property.

Commons Registration Search:  A search at the local authority to check the property is not registered as common land or part of a village green resulting in third party rights over the property (e.g. grazing) resulting in the enjoyment of the property being limited.

Completion Date:   This is the date when the sale or purchase of a property is finalised and the Buyer obtains the keys and can move in. It is therefore usually the same as the "moving date".

Completion Statement:  A written calculation of all the receipts and payments due in respect of the transaction

Contaminated Land:  Land 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).

Contract:  The legally binding agreement incorporating all the terms and - conditions of the sale of a property made between the Buyer and the Seller.

Deed of Covenant:  A document confirming an agreement to pay or do something.

Deed of Gift:  A document transferring the ownership of property from one person to another without any payment being made for it.

Deed of Guarantee:  A document used where on person agrees to be responsible for someone else’s debt or mortgage obligations if that person fails to carry out their obligations.

Deed of Postponement or Priority:  Where a mortgagee agrees to their mortgage ranking after another lender’s mortgage.

Deeds:  The official documents confirming who owns a property which are in the possession of the owner or mortgagee if the property is mortgaged.

Deposit:  The agreed amount to be paid on exchange of contracts usually forfeited if the buyer fails to complete.

Disbursements:  The word used by lawyers for the necessary expenses –such as search fees - to be incurred when buying a property.

Discount Rate:  A 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 Mortgage:  A 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 Policy:  Assurance providing for the payment of a lump sum on death or maturity.

Environment Search:  A search against a property to check whether there is any record kept to suggest that the property may be affected by contamination.

Equity:  Usually means the difference between the value of a property and the amount owned to the mortgagee.

Exchange of Contracts:   This is the moment when the contract finally becomes legally binding. (The builder will only give a firm completion date at this point if your New Home is already structurally complete. Otherwise see "Completion Date" below.)

Expedition Fee:  An additional fee which can be paid to the land registry to speed up registration.

Fixed Rate Mortgage:  A 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 and Fittings:  Fixtures are those permanently fixed items that can be regardedas part of the property itself, for example trees and plants, gates, kitchen/bathroom units, built-in cupboards, fireplaces etc. Fittings are essentially portable items that have been attached with a view to easy removal such as curtain rails, carpets, spice racks etc and which do not damage the property if removed. It is important to distinguish between them when making "apportionments" and when deciding what you may or may not remove when selling. A buyer is entitled to assume that no fixtures will be removed unless the contract specifically permits this to be done. Always ask us for advice if you are not sure.

Flying Freehold:  This arises when part of the 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.

Freehold:  Absolute title.

Freeholder:  See Lessor.

Full Title Guarantee:  The seller of a property must state the guarantee they are prepared to give. This is the usual guarantee given by a property owner.

Further Advance:  An additional amount lent to the mortgagor under the terms of the original mortgage.

Ground Rent:  This 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 Fee:  This 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.

Home Information Pack:  A Home Information Pack (“HIP”) contains important information that buyers and sellers need to know about a property. The Pack includes an Energy Performance Certificate (EPC), containing advice on how to cut carbon emissions and fuel bills. Also included are documents such as a sale statement, searches and evidence of title. Packs are now required for the sale of four bedroom properties and larger. The seller orders and pays for the HIP at the point where a property is put on the market. It is provided to the Buyer free of charge.

Index Map Search:  A search at the land registry to see if a property is registered or unregistered.

Interest Only Mortgage:  A 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 Certificate:  An official certificate issued by the land registry where a property is registered detailing the ownership and interests in the property where there is no legal charge.

Land Charges Search:  Search made in Land Charges register to see if any land charge has been registered against a relevant party. Also includes compulsory Bankruptcy search against Borrower on behalf of Lender.

Landlord:  See Lessor.

Land Registry:  Central government body which maintains recordsof the ownership of land.

Land Registry fees:  Fees payable to Land Registry for registering changes of ownership and other matters affecting land.

Land Registry Search:  This is a final search carried out by the conveyancer at the Land Registry to check that nothing has been altered since the copy deeds were first produced to him e.g. no new mortgages have been registered.

Lease:  Where 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.

Leasehold:  Where 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.

Leaseholder:  See Lessee.

Legal Charge:  See Mortgage.

Lender:  Usually Bank or Building Society that grants a loan by way of mortgage for the purpose of buying property.

Lessee:  Where a property is leasehold the lessee means the current owner of the leasehold property as opposed to the freeholder or landlord who’s interest is subject to the lessees right of occupation until the lease term has come to an end.

Lessor:  This means the landlord or freeholder who owns the freehold 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 Guarantee:  This 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. personal representative of a deceased owner or a mortgagee possession).

Local Search:  A 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 Search:  A search to check whether the property may be affected by coal mining activity which may result in subsidence.

Mortgage:  Form of loan that is secured (attached) to your property. This means the property cannot be sold unless the loan is repaid in full. The Lender can also sell the property if the repayments are not made.

Mortgage Deed:  The document signed by the mortgagor to create a legal charge which the mortgagee can register at the land registry.

Mortgage Offer:  The details of the terms upon which the mortgagee is prepared to make the mortgage loan.

Mortgage Term:  The length of time agreed for the repayment of the loan.

Mortgaged:  Where a property has been charged by the owner or mortgagor to the mortgagee.

Mortgagee:  Somebody who gives someone a mortgage (e.g. a bank or building society).

Mortgagor:  Somebody who takes out a mortgage (a borrower).

NHBC:  National House Building Council:  the independent regulator and standard setter for the new homes industry

Occupier’s Consent:  Any 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 Wall:  A wall owned jointly with a neighbour and repairable at shared expense.

Planning Permission:  Approval by the local authority to the building or change of use of a property or extension to an existing property.

Power of Attorney:  The document to be signed by somebody to appoint somebody else to act as their attorney.

Private Road:  A 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 Form:  A 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).

Purchase:  The buying of a property.

Purchaser:  See buyer.

Radon Gas:  A naturally occurring radioactive gas which may if above certain safety levels require preventative action to be taken (e.g. more ventilation in a property).

Redemption Fee:  Final mortgage settlement figure sent to Conveyancer when completion date is known in relation to the SALE of a property.

Redemption:  The repayment of an existing mortgage.

Redemption Penalty:  A penalty charge by a mortgagee when you redeem a mortgage within a fixed rate, discounted rate or cashback period.

Registered Land:  Property which has already been registered at the Land Registry.

Remortgage:  Changing a mortgage from one mortgagee to another.

Rentcharge:  Some 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 Mortgage:  A mortgage which the mortgagor repays both interest and some of the initial capital borrowed each month.

Reservation Fee:  An administration fee charged by some mortgagees to cover the cost of reserving a mortgagor’s entitlement to a loan on certain terms of possibly a fee paid to a builder to reserve a particular new property.

Sale:  The sale of a property.

Seller:  Someone who sells a property.

Service Charge:  A 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 Order:  An 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 Duty Land Tax:  Tax charged by government when buying a property for £175,000.01 or more. Between £175,000.01 and £250,000.00 you must pay 1% of the whole purchase price. Between £250,001.00 and £500,000.00 you must pay 3%, £500,001.00 and above 4%.

Subsidence:  Where 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.

Survey:  An inspection and report on the property by a surveyor as to the state of the property and value.

Tenant:  See Lessee.

Term Assurance:  Life insurance which only lasts the term of the mortgage.

Tin Search:  A search to establish whether the property may be affected by tin mining activity which may result in subsidence.

Title:  The owner’s right to a property.

Title Deeds:  The legal documents that prove the ownership of property or land and contain details of rights and obligations affecting it.

Transaction:  A dealing with property (e.g. sale or purchase).

Transfer:   Document used to transfer property between Seller and Buyer.

Transfer of Equity:  A document transferring ownership of a share or interest in a property from one person to another.

Tree Preservation Order:  An 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 Title:  Where 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 Possession:  Possession of a property free of the presence of any people, possessions or rubbish.

Valuation:  A very simple form of survey designed to establish the market value of the property.

Variable Rate:  A mortgage interest rate which is variable and which is set by each individual mortgagee.

Vendor:  See Seller.

Wayleave Agreement: A 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.