Absolute Title

Where a freehold property is held with Absolute Title there can be no dispute as to the ownership or right to that estate and guarantees complete title. Where a property is held with Leasehold Absolute then the freeholder has provided evidence to the land registry that they have a guaranteed sufficient title to enable them to grant a Lease.

Bankruptcy Search

Search made on behalf of a mortgage lender to ensure that a prospective borrower is not or has not in the past been made bankrupt or has writs or orders made against him.

Buildings Insurance

The buyer is usually responsible for insuring the property from exchange of contracts, and you should ensure the level of cover is at least the sum recommended by your surveyor/valuer.

Chancel Check Search

Chancel Repairs are a medieval anomaly where the Church was granted powers to charge for the upkeep of the chancel of the parish church. A Chancel Check Search ascertains whether there is a possibility that the property has a liability to contribute financially towards any future chancel repair.

Completion Date

The day on which the transactions are concluded, when the balance of monies change hands and everyone can move.

Contract

The document you will be asked to sign to reflect the terms of your transaction which, when exchanged with the other side, will be legally binding on both parties.

Deposit

A buyer is asked to pay a deposit on exchange of contracts to secure the property and is therefore the initial amount they will lose if they fail to comply with the terms of their contract.

Drainage and Water Search

When selling a property the required HIP must include a Drainage and Water search. This will indicate to any prospective buyer whether the property is connected to mains water and drainage, where the public sewers are in relation to the property boundary and whether there are any issues regarding water quality.

Environmental Report

The owner of land can be held responsible for eradicating contamination from the soil however or whenever caused; a potentially expensive process. A report such as this can give an indication as to the likelihood of problems arising.

Equity

The value of ones interests in the property usually calculated by deducting from the value of the property the debts secured against the property.

Exchange of Contracts

The time when everyone in the chain is ready and simultaneously exchange i.e. commits themselves to buying/ selling that property under a legally binding agreement, and a completion date is set.

Fixtures and Fittings List

A schedule showing what sellers intend to include in and exclude from a sale. This document forms part of the Contract.

Freehold & Leasehold Tenures

The purchase of a Freehold property entitles you to ownership of the land that the property is built on, as well as the property itself. Leasehold properties, often flats, entitle you to ownership of the property but the land is owned by a landlord or managing agent.

Ground Rent

An amount paid by a leaseholder to a landlord (the Freeholder) - this is detailed in the lease.

Home Information Pack

Since 14 December 2007, any property marketed for sale in the UK is required to obtain a HIP, to be made available to any prospective buyers. A HIP must contain information such as evidence of ownership of the property being sold, an Energy Performance Certificate, and Drainage and Water Report.

Indemnity Insurance

You can insure against all manner of things arising in a property transaction e.g. an adverse search result, breach of planning or building regulations and a possible breach of Restrictive Covenants. It does not solve the problem but it provides compensation against any financial loss to you as a result of that defect. There is a one off premium for this based on the value of the property.

Joint Purchase

Property can be acquired either a beneficial joint tenants or tenants in common and advice as to the most appropriate for your set of circumstances can be given by our experienced Family Law team.

Land Registry

The Government department that is responsible for registering ownership of land and any changes to the property title.

Local Search

Enquiry made of the local authority about the property to be purchased, and includes any Planning Applications that have affected the land as well as town planning proposals that might affect the property in the future. The majority of mortgage lenders will insist that a full local search is carried out prior to completion.

Management Companies

Where a group of flat-holders collectively purchase the land, or the freehold title, from their landlord and set up a limited company in which they each hold a share. When one of the flats is sold, the seller will sign a Stock Transfer Form to transfer their share of the freehold to the buyer.

Mortgage Deed

A legal document that you are required to sign when taking a mortgage. It provides the lender with your authorisation for the loan to be secured against the property by way of Legal Charge.

Mortgage Offer

A formal offer from your mortgage lender is issued after their valuation has been carried out and income references and credit checks have proven satisfactory. Issued subject to conditions, the offer will state how much they are prepared to lend you to buy a particular property and on what terms.

 

Notice Fee

When you purchase a Leasehold property, you will normally be required under the terms of the lease to write to the landlord with a Notice of Assignment informing them that you are the new owner, and they usually charge a fee to acknowledge this. They will also usually require a Notice Fee if you transfer the property to anyone else or take a mortgage against it.

Planning Permission

Evidence of local authorities’ approval/consent to works carried out to a property.

Property Information Form

Form that the seller completes giving answers to questions that a buyer might raise. It provides information about utilities that service the property and when they were last maintained, and any amendments made to the property.

Redemption Figure

The amount required to repay a mortgage or secured charge after selling the property.

Remortgage

Taking out a new mortgage with a different lender, often using the funds to repay any existing mortgage and release any available equity to spend.

Retention

Money withheld by a lender until certain repair works have been undertaken or investigations made. The property will usually be re-inspected by the lender to ensure the work has been carried out satisfactorily before releasing the remaining funds.

Searches

Numerous searches are made by us, either in the preparation of a HIP to sell a property, or in the purchasing process if the property being sold does not have a HIP. Includes local searches, environmental searches, drainage & water reports, bankruptcy searches and many more depending on the location of the property.

Service Charge

An amount payable by a leaseholder to landlord, managing agents or Management Company being the leaseholder’s contribution towards costs incurred in maintaining and repairing the structure of a building and its insurance.

Stamp Duty

Tax payable to the Inland Revenue on a purchase price in excess of £125,000.

Survey

A surveyor can undertake a basic valuation, usually on behalf of a lender, or a home buyers report undertaken on your behalf and on which you can place reliance.

Title Deeds

Historic documents showing how and when the property has changed hands, and may include planning permissions and any previous search results. Title Deeds used to be retained by a mortgage lender as security for the loan, but now all records are held electronically with the Land Registry and so the Deeds are now of no real value, other than the information such as planning documents that will be required by a Buyer when you come to sell the property.

Transfer Deed

(TR1)
Land Registry deed transferring ownership of land.