Jargon Buster

Redemption

This is the final payment of a mortgage loan.

Rent

Rent is a payment of money from a Tenant to a Landlord for the use of the property or Land.

Stakeholder

Stakeholder is a person or firm who holds the deposit as a quasi-trustee on behalf of both parties and who cannot release it without the consent of both parties.

Stamp Duty

This is paid by the buyer for any property purchased over £125,000. If the property you are purchasing is between £125,000 and £250,000 you pay 1% of the purchase price, £250,001 to £500,000 is 3% and above £500,001 is 4%.

Subject to Contract

After a buyer makes an offer, the Estate Agent will check their financial position to purchase the property, plus details of any chain which is involved. Once the Estate Agent has advised the owner that all these details are satisfactory and the buyer, in principle, is in a position to proceed, then an offer can be accepted and Solicitors instructed. The property is then sold, subject to contract. As stated previously, under “Exchange of Contracts”, under the current law of the land, a seller or buyer can withdraw from this agreed purchase at any stage up until Exchange.

Surveys

All surveys are covered on our website under our Buying Surveys page. Briefly, it is the buyers’ responsibility to discover any physical defects before purchase, a survey will be a report carried out on your behalf. You will be required to have a mortgage valuation undertaken if you are taking out a mortgage, you should specifically note that this is not a survey, but merely satisfies the lender that the property is worth the amount of the loan.
If you wish to have a survey carried out specifically on your behalf, you can commission an RICS Homebuyer’s Report or a Building Survey. Again, full details of these surveys are available on this website.

Tenancy Agreement

Tenancy Agreement is a legal document signed by the Landlord (or agent) and tenant that identifies the rights and responsibilities of each party in line with the occupation of a property.

Tenancy Deposit

Tenancy Deposit is the money held by the Landlord or otherwise as security for the performance of any obligations of the Tenant or the discharge of any liability of his arising under or in connection with the Tenancy.

Tenant

A Tenant is the person(s) with consent to occupy the property or land, rented from a Landlord.

Title Deeds

These documents are legal proof that the person selling the property owns it to sell. Secondly, it sets out any rights or obligations that affect the property. Most Deeds are held by the mortgage company, if appropriate, who may charge a fee to release them. Your Solicitor can advise you further.