Accelerated possession
A procedure whereby landlords can regain possession of properties let on assured
shorthold tenancies, providing all the necessary procedures have been complied
with. There is usually no need for a formal county court hearing, simply the
correct documentation and a written submission to the court must be carried
out.
Annual percentage rate (APR)
The interest rate paid over the course of one year on a mortgage or loan.
Assured shorthold tenancy (AST)
A form of assured tenancy which gives the landlord the right to repossession
of their property after a fixed amount of time set out in the tenancy agreement.
New tenancies are automatically ASTs unless otherwise stated.
Assured tenancy
The landlord can charge a market rent (the going rate for similar property
in that area) and regain possession of the property under certain grounds
or conditions, as set out in the Housing Act 1988 and the Housing Act 1996.
Buildings insurance
An insurance you take out when you buy a property that will cover the cost
of rebuilding the house if it is damaged or burns down etc.
Chain
The line of buyers and sellers involved in each house move.
Completion
The term used when the seller and buyer exchange the remainder of the money
needed to buy a property through their respective solicitors. At exchange
of contracts a deposit - usually 10 per cent - will have been paid. At this
point the buyer becomes legal owner of the flat or house and can move in.
Conveyancing
The legal process by which ownership of the property is transferred from the
seller to the buyer. This is usually carried out by a solicitor, or licenced
conveyancer.
Gazumping
This is when a property is sold at a higher price after an offer has been
previously been accepted.
Early redemption fee
If you have a mortgage and want to sell your house or change to another mortgage
lender (remortgage), you will be paying back your loan early (redeeming).
Many lenders charge this penalty fee, particularly during any period of fixed,
capped or discounted rate. Make sure you are clear about any penalties when
you take out the mortgage.
Equity and negative equity
The part of the value of your property that belongs to you. For example: if
you buy a £200,000 property and put down a 10 per cent deposit, then
you have £20,000 equity in the property. Negative equity is when the
value of your property in current market value is less than the mortgage you
have taken out.
Exchange of contracts
The contract is a written agreement that sets out terms between the buyer
and the seller. When both parties exchange contracts - usually several weeks
before completion - the deal becomes legally binding. Usually a deposit, often
10 per cent, is paid at this stage.
Freehold
This means you own a property outright. Most houses are freehold and many
flats are leasehold.
Leasehold
If you buy a leasehold flat, you don't own the property rather the right to
live there for a specified period of time - however much time remains on the
lease. The owner of the property is called the freeholder or landlord.
Life insurance
If you have a joint mortgage, life insurance can be taken out so that the
cost of the property will be paid off if one of you dies.
Mortgage indemnity guarantee or MIG
This is a one off payment paid when you set up a mortgage and it's is a kind
of insurance policy for the mortgage lender. It buys protection for them not
you against the value of the home falling to less than the mortgage. It is
usually only charged to customers with less than a 10 per cent deposit, but
do check as this can vary.
Regulated tenancy
A regulated tenancy gives you a legal right to live in your accommodation
for a period of time. Your tenancy might be for a set period such as a year
(this is known as a fixed term tenancy) or it might roll on a week-to-week
or month-to-month basis (this is known as a periodic tenancy).You are likely
to be a regulated tenant if you moved in before 15 January 1989, you pay rent
to a private landlord and your landlord does not live in the sam building
as you.
Stamp Duty
A tax paid by the buyer of a property set at 1 per cent for properties over
£60,000, 3 per cent for properties over £250,000, 4 per cent for
properties over £500,000.
Tenancy
A legal written agreeement between a landlord and tenant that sets out the
terms of the rental.
Unitary authority
This is a local council that provides all council services, unlike some county
and district councils where the provision of services is split.
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