Glossary

Advance The payment of mortgage monies by a lender
Anti Money Laundering Search This is a search against electronic databases to confirm your identity.
APR Annual Percentage Rate. A guide to help compare interest rates among lenders. It takes into account extra items such as booking fees
Assignment The transfer of a lease

Bank Draft The payment of funds guaranteed by a bank
Bank Transfer Fee This is a charge for transferring money through the banking system on the day of completion, used to ensure that the seller gets your money on the day of completion. A further charge may be made for Cheque Special Clearance.This is necessary for when we make payments from funds received before those funds are cleared.
Bankruptcy Search This is a check at the Land Charges Registry carried out by us on behalf of your mortgage lender to check no bankruptcy order has been made or any petition pending. This obviously only applies if you are having a mortgage.
Bridging Loan A short term loan

Chancel Repair Liability Chancel repair liability is a medieval anomaly whereby the Parish Church was granted powers to charge those owning "rectorial land" for the upkeep of the chancel of the church. This search checks if the property is such an area or parish.
Chancel Search The Chancel Search is a search to establish whether the property is at risk of having to contribute to the upkeep of a local parish church. This is a hangover from a medieval law which is still, technically, enforceable today.
CHAPS payment The electronic payment of funds in cleared funds from by one bank to another - also refered to as a "telegraphic transfer"
Charge A debt secured on the property. Monies borrowed from a lender for the purchase of a house are usually secured against the property
Coal Mining Search This is required or recommended in areas of the country where there is or has been mining activity. It tells us if the property is likely to be affected by mining related subsidence or developments. When something is revealed by this search, further enquires may be necessary. If we do not need to do a search in your area there will be no charge for this.
Collateral Security pledged for repayment of a loan
Completion The day on which either the purchase or sale of a property or remortgage occurs. Usually, on a sale or purchase it is also the moving date
Condition of sale A legal term of the contract governing the purchase
Contract The legally binding agreement between buyer and seller
Conveyancing General term for the legal process of buying and selling land
Covenants Rules and conditions contained in the deeds that relate to the use of the property setting out things you must do or refrain from doing.
Creditor Someone who is owed money

Deed of Covenant A document stating that someone will comply with the rules and conditions affecting a property
Deposit Part of the purchase price which is paid on exchange of contracts to confirm commitment to the purchase
Drainage Searches A search at the water authority to confirm, amongst other things, whether or not the propertys sewers and surface water drains are adopted and maintained at public expense.

Easement A right granted over another's property (such as a right of way)
Encumbrance An (usually unfavourable) obligation affecting a property
Endowment mortgage A mortgage covered by a policy that is designed to pay off the capital owed on the mortgage by the end of the term of the mortgage
Energy Performance Certificate (EPC) An EPC gives home sellers an "A to G" rating for their home's energy efficiency to help cut carbon emissions and fuel bills, (a similar rating to labels found on new domestic appliances).
Engrossment A document in its final form to be signed by all relevant parties
Environmental The Enviromental Search is to check landfill sites located in the area of the property. It also provides a limited amount of information on flood risk.
Exchange of Contracts The stage at which the transaction between the seller and the buyer becomes legally binding

Freehold Outright ownership of a property and the land on which it stands

Ground rent Annual payments made to a landlord. This applies only to leasehold properties

Headlease A leasehold term that is granted out of the freehold estate. The Headlease may be subject to subleases
Help to Buy The Government's Help to Buy scheme makes it possible to buy a new or existing home with a 5% deposit. Please click here for more information.
HomeBuy Scheme This is a government-backed shared equity scheme whereby the someone purchases a proportion of their home and rents the remainder, with the option to purchase more of the property in the future. Please click here for more information.
Homebuyer survey This report is less detailed than a full building survey. It gives general details of a property i.e. age, state of repair and valuation. Most Lenders will accept this sort of report. Please click here for more information.

Intestate The legal term used to define an instance in which a person dies without having made a will

Joint tenants When property is owned by two people as "joint tenants", on the death of the first of those people, the property passes outright to the survivor regardless of what is contained in the deceased's will. See also Tenants in Common below

Landlord One who owns property and rents it to others
Land Registry A government department which maintains the national property register in England and Wales
Land Registry Fee This is a disbursement charge by H.M Land Registry for registering a new owner.
Land Registry Search This is a check at H.M. Land Registry to check the property belongs to the Seller and what mortgages or other charges need to be paid off. It should also reveal whether there are any legal restrictions on the use of the property.
Lease A document made between a landlord and a tenant, setting out the terms of occupation of a property
Leasehold The occupier owns the right to reside in a property for a fixed term but does not own the land on which it stands
Licence to assign A formal permission sometimes required from a landlord to enable a buyer to purchase a leasehold property
Local search These are standard forms of questions sent to the local authority, the answers to which may show, for example, whether any alterations have had planning consent and building regulations approval and whether the property is connected to them mains drainage and water. Note: These searches are against the house itself. They do not show up information about nearby property.

Management company A company set up to manage the building and common parts of a property in which a leasehold property is situated - sometimes this is owned by the occupiers and will also own the freehold Mortgage A loan secured against a property. In the event of non-payment, there is usually a right to sell the property.
Mortgage indemnity policy An insurance policy taken out by a mortgagee to cover any loss in the event of a forced sale. Usually, the company providing the policy has the legal right to recover the loss from the borrower
Mortgage protection policy An insurance policy which guarantees mortgage payments in certain circumstances such as unemployment
Mortgagee A money lender, such as a building society or bank, who secures the loan against a property
Mortgagor The borrower who enters into a Mortgage with a Lender

NHBC National House Builders Council The NHBC provide a ten year warranty against major structural defects for new properties

Official Copies A copy of the title registered at the Land Registry, confirming ownership of the property

Personal representative The person appointed by a will or on when a person dies intestate to act for the deceased owner
Property Information Form A form completed by the Seller setting out information about the property, its use and condition.

Quarter days Older leases sometimes specify that the rent and/or service charges are payable on "the usual quarter days". The usual quarter days are: 25 March - Lady Day, 24 June - Midsummer Day, 29 September - Michaelmas, 25 December - Christmas

Redemption Paying off a mortgage
Registered land Land which is registered has its ownership details recorded at the Land Registry
Repayment mortgage A mortgage where the borrower makes interest and capital payments to the lender
Requisition on title Queries raised about the ownership of the property and how that ownership will be transferred
Retention Monies held back from a mortgage advance pending completion of conditions attached to the mortgage offer

Service charge Money requested by a landlord for repairs and maintenance to a Leasehold or Commonhold property
Stamp Duty A government tax currently charged to buyers purchasing properties for more than £125,000.00, please click here for more information. Subject to contract Negotiations which do not become binding until contracts are exchanged
Structural survey An assessment of the essential framework of a build. Please click here for more information.

Tenant A person who pays rent to another for the use of a property or land
Tenants in common Where two or more people own a property as "tenants in common", and one of those people dies, the deceased's share of the property will pass according to what has been stated in the deceased's Will (or according to the rules of intestacy, in the event of no will having been made).See also Joint Tenants above
Tenure The type of property: Freehold, Leasehold or Commonhold
Term A period of time, such as the length of a mortgage
Title Information Document The document issued by the Land Registry on completion of the registration of a change of ownership or mortgage
Title Insurance Policy An insurance taken out to cover a 'defect' found when buying a property, such as a lack of rights or a breach of planning permission or building regulation approval. It usually covers the owner and his lender as well as successors in title and their lenders
Transfer The document transferring ownership from seller to buyer

Underlease A leasehold term which is granted from a longer leasehold term

Valuation An assessment of a property's value Vendor The property seller

Water & Drainage Searches A search at the water authority to confirm, amongst other things, whether or not the property's sewers and surface water drains are adopted and maintained at public expense.
Will i. Will Your instructions to deal with your possessions and assets after your death. Everyone should make a Will regardless of the value of their assets. If you die without making a Will then the law will deal with your Estate as Intestacy and this may not be dealt with in accordance with your wishes. Contrary to popular belief under the law everything does not automatically pass to a spouse when their partner dies.