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Property - Estate Agents

A.P.R.

Annual Percentage Rate. This is the interest rate you actually pay which takes into account the lender's particular way of calculating interest, the timing of the loan and certain fees. In the case of a mortgage with a discounted rate in the early years, the APR may be calculated on the lower rate.

 

Borrowing Multiples

These govern how much you can borrow and are usually worked out as a multiple of your salary. The multiples used will vary from lender to lender, although typically they will be 3 times the larger salary plus 1 times the second, or 2.75 times your joint income, whichever is the highest.

 

Completion

The date all monies and title deeds are transferred, and you can now move into your new home

 

Chain

This relates to the 'chain' of properties involved in your purchase. In order for completion to take place, all the people involved in the 'chain' have to synchronise the sales of their properties. A break in the chain may mean a delay while a new purchaser is found. A chain will usually start with a buyer who has no property to sell and end with someone moving into an empty property.

 

Contracts

The legal documents signed by both parties transferring ownership of the property from one person to another.

 

Conveyancing

The legal process involved in buying and selling properties, usually dealt with by a solicitor or licensed conveyancer.

 

Council Tax

The local Council identifies several categories or bands based on property value for the purposes of establishing the amount payable in rates per year.

 

Endowment

An endowment policy is a means of repaying an interest-only type of loan. This is guaranteed to repay the sum assured in the event of your unfortunate death prior to the end of the policy term. At the end of the policy term, the value of the policy will be dependent on investment performance and is not guaranteed.

 

Equity

The amount of the property you own! The equity you own will be the difference between the amount you borrowed to buy the property and its current market value if you sold it.

 

Exchange of Contracts

The date the legal agreements between vendor and purchasers' solicitors change hands, and become legally binding and a date set for completion.

 

Fixtures and Fittings

All items which will be left in the property and may be included in the sale - i.e. fitted wardrobes, shower and gas hob are the obvious, but garden shed, dimmer switches, carpets and curtains are also examples.

 

Freehold

The ownership of the land on which the property is built.

 

Land Registration Fees

A fee payable to register the property in the purchaser's name.

 

Leasehold

Ownership of the property but not the land on which it is built. (often applicable to flats)

 

Lender

The Company or institution that provide the money to buy the property.

 

Loan-to-Value

Expresses the size of loan you can borrow as a percentage of the value of the property. Most lenders only lend 95% but a few will lend 100% probably at a higher rate of interest to allow for the 'higher risk' involved if you default on your payments.

 

Mortgage

An amount of money borrowed for a period of years to buy a property.

 

N.H.B.C.C

National House Builders Council Certificate was introduced in the early 70's, and is a 10-year guarantee against structural faults after the property has been built.

 

Purchaser

The buyer.

 

References

Your lender will want to take up references from your employer, to back up information given by you on your application form.

 

Repayment

The amount you have to pay each month to your lender. Also a type of mortgage sometimes called a 'capital and interest' mortgage where the amount of the loan is repaid in equal monthly installments made up of interest and capital over a set number of years. The earlier years of the mortgage are mostly interest and the later years mostly capital.

 

Searches

Your solicitor will organize these to ensure that the property is not affected by any local authority plans, which would be detrimental to the value of a property, such as road widening or land infills etc.

 

Sole Agency

This is an estate agency term where you receive a better percentage rate from the agency for its services if you only use that agency to sell your house, rather than go through other agencies as well.

 

Stamp Duty

A scaled levy imposed by the Government payable on properties over a certain value. Check with Renown for current legislation.

 

Survey

An inspection of the property carried out by a qualified Surveyor. There are generally three types of survey: Building society survey, House Buyer's Report & Valuation & Full structural survey.

 

Title Deeds

The deeds of the property proving ownership. Held by lender until the loan is repaid.

 

Vendor

The Seller

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