Maintenance Charge
The cost of maintaining and repairing the internal, external or communal parts of a building charged to the tenant or leaseholder.
Maisonette
A property that is arranged over more than one floor often having their own entrance from outside.
Mortgage
A loan to help you buy your house. The loan is secured on the property to prevent you selling the property without paying off the loan. If you fail to meet the mortgage payments as agreed, the lender could force you to sell your home.
Mortgage Deed
The legal document gives the lender certain rights over the property.
Mortgage Fees
An amount charged by your financial advisor, or the lender, to cover the cost of arranging your mortgage.
Mortgage Offer
If the lender is happy with the valuation and references, you’ll be made a formal offer approving the mortgage and detailing all terms and conditions. This is usually sent to you and your solicitor.
Mortgage Repayment Protection (MRP)
An insurance policy which covers your monthly mortgage payments should you fall ill.
Mortgagee
The lender of the mortgage (i.e.: bank or building society)
Negative Equity
Where the size of the mortgage loan is greater than the market value of the property.
Offer
An amount of money a buyer wants to pay for a property.
Ombudsman
A scheme that provides an independent and impartial facility for the resolution of complaints between those members of the public who buy, sell or let property and the agents they deal with.
Open market value
A price that a property will achieve on the open market when there is a willing buyer and seller.
Payment Break
A flexible mortgage option that allows you to stop making mortgage payments for up to 6 months.
Penalties
Cost that may be charged if the borrower repays the loan earlier than the agreed period or switches between lenders.
Premium Lease
A lump sum paid up front on rental property.
Purchaser
A person who is buying a property.
Redemption Fee
A penalty which may be charged by your existing mortgage lender if you pay off your mortgage early or you move to a different mortgage. Always check the details of your existing mortgage before agreeing to redeem it and consider any such implications on a future loan.
Re-mortgage
Refinancing a property by either switching a mortgage to another lender or by arranging a second mortgage with the existing lender when there is equity gained, due to an increase in the property value.
Repayment mortgage
A mortgage where the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest. At the end of the mortgage term, the full amount of the debt will be repaid.
Repossession
Where the mortgage lender takes possession of the property due to non – payment of the loan.
Restrictive Covenant
This is a clause, usually in the original title deeds, which can legally restrict the use/enjoyment of a property. For example, a builder of a property next to his own might bind the purchaser and future owners never to erect another building on the land.
Retention
When the lender holds back some of the mortgage money until certain repairs have been done to the property
Searches
A check on certain recorded aspects that might affect the value of the property, such as a Local Authority Search which covers items such as road maintenance, planning applications etc..
Sole agent
When a seller instructs only one agent to sell their home
Solicitor
The legal expert handling all the documentation relating to the sale or purchase of a property.
Stamp Duty
A government tax payable by every buyer of a property over £125,000. Duty is charged at 1% for homes priced between £125,000 and £250,000. The rate is 3% for homes over £250,000 but not more than £500,000. Property over £500,000 attracts “stamp duty” of 4%. There are certain nil-rated bands applying to disadvantaged areas..
Structural Survey
A survey giving details about the building and its integrity.
Subject to contract
The term used to denote that a provisional agreement between the buyer and the house has been made, but this is not binding on either side.
Tenancy
Temporary occupation of a property by a tenant.
Title Deed
The legal document showing who owns the property.
Transfer Document
The formal document that officially confirms the transfer of the property from the seller to the buyer.
Valuation Survey
An inspection of the property by the lender’s representative to ascertain how much the property is worth to the lender as security for the mortgage loan. This is not to be confused with a structural survey.
Variable Base Rate
The basic rate of interest charged on a loan. This may change as a result of market conditions, so your monthly payments can go up or down.
Vendor
The legal name for the owner selling a property.
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