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.
When a mortgage if fully repaid.
This is what is done to check a potential tenant’s suitability to rent a property. Such things as contacting previous landlords, present employer and doing a general credit check can come under this category.
This is land (including any property on it) which is registered at the Land Registry.
These are sometimes used in conjunction with fixed term tenancies. For example: in an AST after the first 6 months is over when it comes to renewal, either party (landlord or tenant), will often request that a break/release clause be entered into the agreement, if they are unsure whether they will want to continue renting the property for the duration of the next 6 months. This clause will normally allow either party to get out (normally with about 2 months notice) before the end of the new term.
Specialists in finding houses and assisting with negotiations.
This is the document that contains all the details and terms and conditions of the tenancy. An AST is a form of tenancy agreement. It is a legally binding document.
Both capital and interest on the loan are paid off in monthly instalments.
When the mortgage lender takes possession of your home because you have fallen too far behind on your mortgage repayments. You will be removed from the property.
This is an amount of money that is held back from the initial loan and will not be paid out by the lender until specific repairs or improvements have been carried out by the purchaser.
This term refers to how much you get out of an investment in comparison to how much you have put into it. For example, if you have invested £100,000 and got £125,000 out it would be a 25% return on your investment.
This is a special type of property purchase. You have an agreement with the vendor that they can still continue to live there for a specified time, normally until they die or some other significant agreed event happens.
An individuals legal right to use any particular part of a property so as to gain access to their own property.
This is when a tenant living in a council-owned (or sometimes housing association or other social housing owned) property, can purchase the property at a discount. Generally the size of the discount depends on the length of their tenancy. In the 1980’s and 1990’s there could end up being a sizable discount, but these days the discount is often capped, no matter how long you have lived there.
