Kewmoor
LifeStyle living creating practical spaces
Part 3: Learn the Lingo
If you are confused with some of the industry’s terminology read on!
- The Reservation is where you state your interest in the property and pay a reservation fee. This forms part of the purchase price.
- Independent Financial Adviser (IFA) This person can give independent advice on financial products available. NOT all IFAs give mortgage advice. A Mortgage Broker can give mortgage advice but may not be able to advise on related financial products.
- Mortgages are loans secured on your home. The money received from a lender (Mortgagee) is known as a mortgage advance. The mortgage deed refers to the formal document that confirms the mortgagee’s interest in your property. The Mortgage Offer is another formal document given to you (the Mortgagor- borrower) by the lender, stating that they will lend you the amount required via a mortgage.
- Mortgage Survey is a valuation done by the lender on the property for mortgage purposes. You will pay a fee for this
- Title Report is the solicitor’s certificate confirming that the title to the property is acceptable. A lender must have one before an advance cheque for the mortgage money can be issued.
- Conveyancing is the legal process of buying and selling a property.
- Deeds are all the legal documents relating to the property
- Covenants are restrictions or conditions affecting the property, these must be complied with.
- Freehold is the full ownership of the property and the land it stands on
- Leasehold; the land the property stands on is held under a lease and a Ground Rent is paid to the freeholder.
- Disbursements are they expenses incurred by your solicitor in respect of searches, stamp duty, land registry fees etc.
- Registered Land is (including the buildings on it) the title to which it is registered at the land registry and the legal ownership of which is guaranteed
- Searches are enquiries made of the district and council to identify any local issues that may affect your property. The payment for these is at the start of the conveyancing process.
- Exchange of contracts is where the sale becomes legal and binding to both the parties. If one party pulls out, they could loose the deposit.
- Deposit’s are paid on exchange of contracts, this could be up top 10% of the purchase price
- Legal Completion is where the ownership is transferred over.
- Transfer the formal document that transfers legal title on your new property to you
- NHBC (National House Building Council) is the independent regulator of the new homes industry
- Buildmark Cover is the 10 year warranty provided on a new home by NHBC
- Stamp Duty is tax paid to the Inland Revenue within 28 days of completing the purchase of a property the amount is a percentage of the purchase price.
