So Suite Properties

Jargon Buster

[A][B][C][D][E][F][G][H][I][J][K][L][M][N][O][P][Q][R][S][T][U][V][W][X][Y][Z]

A

Acceptance
A positive response to an offer or counter offer. Acceptances may be conditional, express, implied or qualified depending on the circumstances of the deal and whether there are any further mitigations, conditions or requirements.

Acquisition
The search, investigation, identification and acquisition of premises, or development opportunities to meet requirements. It also involves making any planning enquiries, applications and appeals to the local authority, the negotiation of terms, the commissioning of structural or condition surveys, and instructing solicitors for conveyancing.

Additional security fee
Its takes the form of an up-front, one off fee paid to the lender to protect them against the borrower defaulting on the loan. An additional security fee occurs when the mortgage exceeds the value of the property usually by 75%, and also known as Mortgage Indemnity Guarantee Premium or Mortgage Indemnity Premium.

Administration fee
An administration fee is often charged for not taking a building and contents insurance policy or some other product offered by the lender in conjunction with a mortgage. These fees are usually less than £50.

Advance
Another name for a mortgage or loan

Adverse possession
Possession of land other than by consent, force, intimidation or clandestine means, against the claim of another party. After ‘unlawful’, unchallenged, undisturbed, exclusive occupation of the land for a specific period (defined in the Limitations Act 1980), the occupier may gain title against the ‘legal’ owner who loses the right to recover possession. A period of 12 years is normally required. However, 30 years is the minimum time required to obtain title by adverse possession against the Crown.

Note: Compulsory purchase counts as ‘force’, so that no period of occupation following the use of compulsory powers can give the acquiring authority title to the land occupied. If the land occupied is the subject of a lease, occupation can lead only to the acquisition of title to the lease and not the freehold.

Advertisement control
Regulations relating to size, location, etc. of signage, public advertisements, etc. which are set by the local planning authority.

Agency sales fee
A fixed amount or percentage of the value of your home paid to an estate agent when they sell your home.

Agent
Someone who acts on behalf of another for a fee such as an estate agent.

Alienation
The transfer of an interest in property to another through sale, assignment or subletting.

All Risk Yield (ARY)
A yield figure which reflects within it the future benefits and risks to which the investment is subject.

Alterations
Physical changes to a property, which may or may not constitute an improvement.

Annual percentage rate
APR provides the consumer with the entire look at the cost of a loan in percentage rate, which will include all the costs, interest charges and arrangement fees.

Annually in arrear
In the context of applying valuation formulae, this is the assumption that all rents are received only once at the end of each year. This assumption is made because the formulae are more straightforward than those applied when valuing rents received every quarter of a year in advance of the rental period.

Appraisal
The process of defining objectives, examining options and weighing up costs, benefits, uncertainties and risks, before a decision is made.

Arbitrator
An impartial person who is appointed to settle a dispute in accordance with the Arbitration Acts.

Arbitrator’s award
The decision of an arbitrator in relation to the level of a reviewed rent. It can refer also to the arbitrator’s decision on the payment of costs of a dispute.

Archaeological area
A district or area of land which is important for its archaeological content. The local authority is likely to give extra prominence to archaeology in the formulation of policy for the particular site and may require archaeological excavation.

Area of outstanding natural beauty
An area of land of particular physical importance over which strict planning protection policies are applied.

Arrangement fees
Fee charged to arrange a loan on certain products, often in connection with fixed or capped rates. Normally non-refundable.

Arrear(s)
Generally found in relation to rent being payable in arrear(s) (i.e. payable on the last day of the period to which it relates).
Alternatively, it can refer to monies being outstanding beyond their due date.

As-in-agreement
When a buyer accepts whatever physical condition a property is in at the time the contract is signed.

Asset
Anything that is of value – e.g. land, buildings, chattels, book debts, goodwill.

Assignment
The transfer of a tenant’s entire leasehold interest in a property to another party (or transfer of a contract).

Assumption
When a buyer assumes the loan repayments and obligations of the seller. If the purchaser defaults on the loan, both the buyer and seller are responsible for the debt.

Assured short hold tenancy (AST)
A tenancy that gives the landlord the right to repossession of their property after a fixed amount of time as set out in the tenancy agreement. New tenancies are automatically AST’s unless otherwise stated.

Auction
Public sale of a property to the highest bidder.

Authorised Guarantee Agreement (AGA)
A contractual arrangement agreed between a landlord and a tenant prior to entering into a new lease. Introduced by the Landlord and Tenant (Covenants) Act 1995, it should set out agreed obligations on both parties (regulated) should either party wish to dispose of their interest to another party prior to the end of the lease. The Agreement can be in a separate document or included in the lease.